Treasury consults on proposal to ban non-compete clauses
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The news: Treasury has begun consulting on the federal government’s ban on non-compete clauses for most workers, no-poach agreements and wage-fixing agreements, before they commence in 2027.
The context: In March 2025, Treasurer Jim Chalmers announced the ban on non-compete clauses for employees below the high-income threshold, currently set at $183,100, to help boost productivity and wages.
The consultation is also seeking views on the need for reforms to non-compete clauses for high-income workers, non-solicitation clauses and employment restrictions on having multiple jobs.
Chalmers said that a ban on non-competes could improve the wages of affected workers by about 4%.
The statement was made jointly with Employment and Workplace Relations Minister Amanda Rishworth and Assistant Minister for Productivity, Competition, Charities and Treasury Andrew Leigh.
Submissions can be made to the consultation until 5 September.
What they said: “Right now, more than three million Australian workers are covered by these clauses, including childcare workers, construction workers, disability support workers and hairdressers,” the joint statement read.
“Workers should not be handcuffed to their current job when there are better opportunities available for them and that’s what these reforms address.”
The sources: Treasurer Jim Chalmers media release, Treasury consultation
