Reform to non-compete clauses and other restraints – draft legislation
Submission Date: 20 October 2026
The Law Council of Australia provided a submission to the Treasury on the Exposure Draft of the Competition and Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026 (Cth) (Draft Bill).
The Draft Bill would amend both the Competition and Consumer Act 2010 (Cth) and the Fair Work Act 2009 (Cth) to implement the Australian Government’s proposal to ban non-compete and other clauses. As noted in previous submissions to the Treasury, the Law Council is broadly supportive of the Australian Government’s objective of addressing the misuse of non-compete and related clauses.1
This submission primarily seeks to identify and address matters arising from the drafting of the Draft Bill rather than the underlying policy decisions of the Australian Government. The Law Council has identified a number of concerns regarding the breadth, operation and potential unintended consequences of the Draft Bill in its current form.
In some instances, there are differing views within the legal profession regarding the proposed reforms. Where views diverge, positions are attributed to specific contributors.
1 Law Council of Australia, Submission to the Treasury, Worker non-compete clauses and other restraints (7 June 2024); Law Council of Australia, Submission to the Treasury, Reform to non-compete clauses and other restraints on workers (12 September 2025).
Last Updated on 20/10/2026
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