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4w ago

Australia to Ban Non-Compete Clauses for Workers Earning Under $175,000 by 2027

The reform, announced in the 2025 federal budget, is set to impact 3 million workers, boost wages, and add $5 billion annually to the economy.

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Overview

  • The Australian federal government has confirmed plans to ban non-compete clauses for workers earning less than $175,000 annually, effective 2027.
  • The policy aims to enhance job mobility, increase wages by up to 4%, and improve economic productivity by $5 billion annually, according to government estimates.
  • Approximately 3 million workers across industries such as childcare, construction, and hairdressing will benefit from the reform.
  • The government is also targeting 'no-poach' agreements between businesses and is consulting on potential restrictions for high-income earners.
  • The reform aligns with global labor trends, including the U.S. FTC’s similar move to ban non-compete clauses, and addresses concerns over unfair labor practices.