Non-compete clauses to go under a re-elected Albanese Government

A re-elected Albanese Government plans to outlaw non-compete clauses for workers earning less than the high-income threshold in the Fair Work Act (currently $175,000) in changes the government says will spur new business entry and competition.

The changes, which will need to be legislated in the next term of parliament, would take effect in 2027.  The government says the changes would increase productivity, add $5 billion to GDP annually, and reduce inflation.

In support of the proposed changes, the government has cited research suggesting the reforms could increase the wages of affected workers by up to 4 per cent, or around $2,500 a year for a worker on median wages.

You can read a joint media statement on the proposed reforms by the Treasurer, Dr Jim Chalmers, Workplace Relations Minister Murray Watt and Assistant Minister for Employment Dr Andrew Leigh, here.