Non-compete clauses to be banned
From 2027, The Government has announced that it will ban non-compete clauses for low and middle-income employees (under the Fair Work Act high income threshold is currently $175,000). Non‑compete clauses are conditions in employment contracts that prevent or restrict an employee from moving to a competitor.
Back in April 2024, Treasury released an issues paper for consultation on Worker non-compete clauses and other restraints. The review stated that, “The direct consequence of a non-compete clause is that it hinders competition among businesses: it disincentives workers from leaving their current job, creating a barrier to the entry of new businesses and the expansion of existing businesses.”
The Government is also make changes to competition law to prevent businesses from:
- Fixing wages by making anti‑competitive arrangements that cap workers’ pay and conditions, without the knowledge and agreement of affected workers.
- Using ‘no‑poach’ agreements to block staff from being hired by competitors
Announced Beer tax paused and benefits for wine and alcohol producers
Indexation on the draught beer excise and excise equivalent customs duty rates will be paused for two years from August 2025. This just means that the price of beer won’t go up because of tax.
Support is also provided under the Excise remission scheme for manufacturers of alcoholic beverages increasing caps for all eligible brewers, distillers and wine producers to $400,000 per financial year, from 1 July 2026 (up from $350,000).
Almost $1bn to the ATO for tax compliance
From July 2025, The Government has set aside $999m over 4 years for the ATO to expand its compliance programs:
- Tax Avoidance Taskforce
- Shadow Economy Compliance Program
- Personal Income Tax Compliance Program
- Tax Integrity Program (medium and large businesses and wealthy groups)The compliance programs are expected to deliver a threefold return of $3.2bn.
