Reforms ahead for non-compete clauses

Following the outcome of the 2025 Federal Election, Optometry Australia (OA) members have expressed strong interest in the Federal Government’s 2025–26 Budget commitment to ban non-compete clauses in most employment contracts.

Under the proposed reforms, non-compete clauses would be prohibited for employees earning below the high-income threshold (currently $175,000), with changes expected to come into effect from 2027, pending consultation and the passage of legislation.

Optometry Australia’s Director of Member Engagement, Sophie Koh said: ‘Restraint and non-compete clauses are among the most common contract issues our members face. Through our OA Help Desk and in partnership with Industry Legal Group (ILG), we regularly provide one-on-one support to members navigating these workplace challenges. We will continue to closely monitor developments and provide guidance to ensure our members’ interests are protected as reforms unfold.’

One OA member shared their experience: ‘I had a great chat with Emma Dalley at ILG about how best to approach my employer regarding a non-compete issue. After speaking with an OA Optometry Advisor and consulting with an ILG workplace lawyer, I understood my rights and obligations much better. It really eased my anxiety and helped me feel more confident and informed.’

Optometry Australia’s legal partner, ILG, has also prepared a detailed summary of the Federal Budget’s proposed changes, available here. ILG recommends that employers now start reviewing their employment contracts and consider alternatives such as confidentiality and intellectual property protections, particularly where non-compete clauses are already difficult to enforce or may soon become non-compliant.

Looking ahead, Optometry Australia and ILG will continue working together to monitor the progress of these reforms, ensuring that members are kept informed with clear, practical updates as the legislative process evolves.

OA’s Optometry Advisor Help Desk remains available to all members, offering free, independent, and confidential advice to help navigate employment matters without judgement. For tailored support, members are encouraged to contact our Optometry Advisors at OAHelpDesk@optometry.org.au or reach out to ILG directly at oa@industrylegalgroup.com.au or call 1300 101 391.

At every stage, OA remains committed to advocating for fair, respectful, and supportive workplaces for all optometrists—and ensuring our members are empowered, protected, and respected.