Draft Legislation to Ban Non-Compete Clauses for Most Workers
The Federal Government has released draft legislation to ban non-compete clauses for employees earning below the Fair Work Act high-income threshold, currently $190,100 per year. Submissions close 2 October 2026 and the reforms are intended to start in 2027.
The Government is also consulting on banning co-worker non-solicitation clauses, no-poach and wage-fixing arrangements, and cascading restraint of trade clauses and considering appropriate exemptions and safeguards to protect legitimate business interests.
Take-Out Point: The whole restraint clause is in play, not just the non-compete. Check your confidentiality, IP, client non-solicitation and garden leave provisions when you review your employment contracts.
See: Government to ban non-compete clauses for most Australian workers
and: Opening the door to better and higher paying jobs: banning unfair non-competes