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.

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.