The Australian Government has released exposure draft legislation that would substantially change the way post-employment restraints are regulated in Australia.

The proposed Competition and Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026 would ban non-compete terms for employees whose annualised full-time equivalent earnings are at or below the Fair Work Act 2009 (Cth) high income threshold, currently $190,100, and for all casual employees and pieceworkers. It would also ban co-worker non-solicitation terms for all national system employees, prohibit the use of cascading restraints, restrict the use of ‘permitted’ non-compete terms for ‘high income’ employees, and extend cartel laws to prohibit no-poaching and wage-fixing arrangements between businesses.

Submissions on the exposure draft legislation close on 2 October 2026.

Australian Industry Group will be making a submission and is seeking member feedback on the practical implications of the proposed changes.