Non-compete clauses cost 3m Australians $4,300 a year, ACTU claims
ACTU modelling shows non-compete clauses trap 3 million workers. They prevent these workers from earning 4 per cent pay rises.
More than three million low and middle-income Australians are held back by non-compete clauses in their contracts. This stops them from switching to better-paid jobs, according to the ACTU.
New modelling was sent to the federal government. It shows that banning these clauses would lift average wages by $4,300 a year.
The Albanese government is drafting laws to ban non-compete clauses for workers earning less than $190,100. Non-compete clauses stop hairdressers, early childhood educators and tradies from moving to higher-paying roles.
They also stop these workers from using their skills elsewhere. ACTU secretary Melissa Donnelly said the clauses limit Australia's productivity and innovation.
"Workers with valuable skills are stuck in lower-paid jobs," she said. Business groups disagree.
They say a ban would discourage investment. The Productivity Commission estimates the reform could boost GDP by $5 billion each year.
- 3 million
- Workers affected
- $4,300
- Annual wage increase if banned
- 4 per cent
- Wage increase percentage
- $190,100
- Salary threshold for ban
Why it mattersIf non-compete bans pass, millions of workers could immediately access better pay. They could move freely between jobs. This would reshape the labour market and wage growth.
AustraliaAustralian workers in lower and middle income brackets could see real wage rises; the reform would reshape job mobility and worker power across the nation.
✓ Claims checked against the source. checked 2 h ago
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