News says Australia will ban non-competes: can I ignore my existing clause?

A proposal is not an enacted answer

Treasury’s consultation on draft non-compete legislation ran from 7 September to 2 October 2026. A draft or a closed consultation does not itself change the enforceability of your signed agreement. Check whether legislation has been enacted and commenced, and any transitional provisions, before relying on a reform headline. Independently, your existing restraint must be assessed under the applicable current law and its actual wording.

Identify which restriction you have

Your employment agreement may contain several different types of restrictions, and the proposed reform treats them differently. A non-compete clause stops you from working for a competitor; a non-solicitation clause stops you from poaching clients or former colleagues; a confidentiality clause protects the employer's information. You need to read your signed agreement carefully and note which restrictions apply to you, their duration, the activities they cover, and the geographical area they mention. Also record any variations to the agreement and the dates of those changes. A news headline about one type of restraint does not answer whether you can use information you learned at your old job, nor does it tell you whether a client non-solicitation clause still binds you.

Ask for advice on the actual move

When you are considering a new job, you should seek legal advice that focuses on your specific situation. Prepare a summary of your old duties, your proposed new duties, the timing of the move, and any written objection you have received from your former employer. Ask the adviser which current rules govern your clause and whether any proposed change has actually commenced. Do not send confidential business documents as part of a general enquiry; provide the agreement through an appropriate private channel when the adviser needs to see it. A future reform summary cannot replace individual contract advice, because the outcome depends on the precise wording of your clause and the facts of your move.

If a former employer threatens enforcement

If your former employer sends a letter alleging that you have breached a restraint, preserve that letter, note the requested response date, and record the specific conduct they claim is a breach. Seek legal advice promptly. Do not assume that the clause is automatically enforceable, and do not assume that a draft reform makes it void. The enforceability of a restraint clause is a legal question that depends on the current law, the wording of the clause, and the circumstances of your case. This guide cannot approve your new job, interpret every restraint, or predict the outcome of litigation. Its purpose is to help you keep the status of the reform separate from the practical facts of your move.

Hypothetical illustration: different products and old clients

Suppose your contract has a non-compete and a separate client non-solicitation clause, and a proposed new role would involve a different product line. Keep the two clauses separate and describe the duties, clients, territory and dates to an adviser. Ask whether each clause covers the actual move and whether any enacted reform has commenced for your situation. Working on a different product does not by itself answer every restriction, and the example assumes no statutory earnings exemption.

Next steps if the issue is unresolved

If you have sought advice but the enforceability of your clause remains unclear, or if your former employer has threatened legal action, you may need to consider formal dispute resolution. Keep all relevant documents, including your employment agreement, any variations, correspondence about the dispute, and details of your new role. When you consult a lawyer, bring these documents and a clear question about whether the clause is enforceable under current law and whether the proposed reform has any bearing on your case. Do not rely on news summaries or general commentary to make decisions about your employment rights.

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