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ARTICLE · 02 OCTOBER 2026

Proposed Ban On Non-Compete Clauses.

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The Australian Government has released draft legislation proposing to ban non-compete clauses for workers earning below the Fair Work Act high-income threshold, currently $190,100 per year. The reforms are not yet law and are intended to commence in 2027, subject to legislation passing Parliament.

AustraliaEmployment and HR
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What does the proposed ban on non-compete clauses mean for employers and employees in Australia?

The Australian Government has released draft legislation proposing to ban non-compete clauses for workers earning below the Fair Work Act high-income threshold, currently $190,100 per year. The reforms are not yet law and are intended to commence in 2027, subject to legislation passing Parliament.

For employers, the proposal is an opportunity to review employment contracts and identify what legitimate business interests their restraint clauses are intended to protect. Confidentiality, intellectual property and appropriately drafted non-solicitation provisions may continue to provide protection, depending on the final legislation. Employees should not assume existing non-compete clauses no longer apply and should seek advice before moving to a competitor, starting a competing business or approaching former clients.

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