Category: Government Updates

The proposed ban on non-compete clauses   In the 2025-26 Federal Budget the Government announced a ban on non-compete clauses and “no poach” agreements.   In the 2025-26 Federal Budget, the Government announced its intention to ban non-compete clauses for low and middle-income employees and consult on the use of non-compete clauses for those on high incomes (under the Fair Work Act the high income threshold is currently $175,000).   The reason? A recent Australian

When overseas workers are Australian employees   The Fair Work Commission has determined that a Philippines based “independent contractor” was an employee unfairly dismissed by her Australian employer.   Like us, you are probably curious how a foreign national living in the Philippines, who had an ‘independent contractors’ agreement with an Australian company, could be classified as an Australian employee by the Fair Work Commission?   The recent case of Ms Joanna Pascua v Doessel

Is the RBA to blame? The economic state of play   The politicians have weighed in on the Reserve Bank of Australia’s economic policy and their reticence to reduce interest rates in the face of community pressure. We look at what the numbers are really showing.   Treasurer Jim Chalmers has stated that global uncertainty and rate rises are “smashing the economy”.   Former Treasurer Wayne Swan weighed in and told Channel 9 that the

Non-compete clauses and worker restraints under review   A new issues paper from Treasury’s Competition Review questions whether non-competes and other restraints are limiting job opportunities and movement.   A recent Australian Bureau of Statistics (ABS) survey found that 46.9% of businesses surveyed used some kind of restraint clause, including for workers in non-executive roles. The survey also found 20.8% of businesses use non-compete clauses for at least some of their staff and 68.2% for

The assault on professional services   The ATO has signalled that it is willing to pursue professional services firms who divert profits to avoid tax.   Two new cases before the Administrative Appeals Tribunal demonstrate how serious the Australian Taxation Office (ATO) is about making sure professional services firms – lawyers, accountants, architects, medical practices, engineers, architects etc., – are appropriately taxed.   In both cases, the ATO pursued the practices using Part IVA. Part

Budget 2024-25   The 2024-25 Federal Budget is the third for the Albanese Government and consistent with previous years, the primary themes are expected to be the cost of living and the economic shift to net zero.   According to election guru Antony Green, the window for the next election starts on Saturday, 3 August 2024, “the first possible date for an election if writs are issued on 1 July. The election window will stay

Up to 10 years in prison for deliberate ‘wage theft’ Legislation currently being debated in Parliament will introduce a new criminal offence for intentional “wage theft”. If enacted, in addition to the criminal offence, a fine will apply. The fine is three times the underpayment and:   For individuals – 5,000 penalty units (currently $1,565,000). For businesses – 25,000 penalty units (currently $7,825,000).   The reforms are not intended to capture unintentional mistakes and a