Treasury has released a draft Treasury Laws Amendment (Banning Unfair Non-Competes) Bill 2026 to ban non‑compete clauses for Australian workers under $190,100 per year (the Fair Work Act high‑income threshold).
The Bill will amend the Competition and Consumer Act to cover arrangements between businesses that prevent or restrict the hiring of staff (‘no-poach’ agreements) or fix, control or cap remuneration and other employment conditions (‘wage-fixing’ agreements).
The amendments also introduce narrow exemptions for no-poach and wage-fixing agreements in limited circumstances, including joint ventures, secondments, labour-hire arrangements and professional sporting leagues, where specific conditions are satisfied.
The Government will also consult on:
* a ban of co‑worker non‑solicitation clauses;
* a ban on no‑poach and wage‑fixing arrangements;
* a ban on cascading restraint of trade clauses; and
* appropriate exemptions and safeguards to protect legitimate business interests.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
