Non-Compete Clauses To Be Banned
The government has announced a ban on non-compete clauses for low and middle-income workers (currently defined as those earning under $175,000 under the Fair Work Act). Non-compete clauses are terms in employment contracts that restrict employees from joining competitors.
In April 2024, the Treasury released a consultation paper on worker non-compete clauses and other restrictions. The review highlighted that non-compete clauses hinder competition between businesses by discouraging workers from changing jobs, which in turn creates barriers for new businesses to enter the market and for existing businesses to expand.
The government is making changes to competition law to prevent businesses from:
- Fixing wages by creating anti-competitive arrangements that limit workers’ pay and conditions without informing or obtaining the agreement of the affected workers.
- Using ‘no-poach’ agreements to prevent staff from being hired by competing companies.
Announced Beer Tax Paused and Benefits for Wine and Alcohol Producers
The indexation of excise duties on draught beer and excise-equivalent customs duties will be paused for two years starting in August 2025. This means beer prices won’t increase due to tax changes.
Additionally, the Excise Remission Scheme will offer more support to manufacturers of alcoholic beverages, raising the annual caps for eligible brewers, distillers, and wine producers to $400,000 (up from $350,000) starting July 1, 2026.
Trade tariffs extended on Russia and Belarus
The government has extended the 35% trade tariffs on goods produced or manufactured in Russia or Belarus. This measure serves as symbolic support for Ukraine, as it is expected to generate only a small increase in revenue over the next five years.