From beer tax pauses to the banning of non-compete clauses, here’s what’s in this year’s budget for business.
Non-compete clauses to be banned
| Date | From 2027 |
The Government has announced that it will ban non-compete clauses for low and middle-income employees (under the Fair Work Act, high income threshold is currently $175,000). Non‑compete clauses are conditions in employment contracts that prevent or restrict an employee from moving to a competitor.
Back in April 2024, Treasury released an issues paper for consultation on Worker non-compete clauses and other restraints. The review stated, “The direct consequence of a non-compete clause is that it hinders competition among businesses: it disincentivises workers from leaving their current job, creating a barrier to the entry of new businesses and the expansion of existing businesses.”
The Government is also making changes to competition law to prevent businesses from:
- Fixing wages by making anti‑competitive arrangements that cap workers’ pay and conditions without the knowledge and agreement of affected workers.
- Using ‘no‑poach’ agreements to block staff from being hired by competitors.
Announced: Beer tax paused and benefits for wine and alcohol producers
| Date | August 2025 (beer excise)1 July 2026 (other measures) |
Indexation on the draught beer excise and excise equivalent customs duty rates will be paused for two years from August 2025. This just means that the price of beer won’t go up because of tax.
Support is also provided under the Excise remission scheme for manufacturers of alcoholic beverages, increasing caps for all eligible brewers, distillers and wine producers to $400,000 per financial year from 1 July 2026 (up from $350,000).
Trade tariffs extended on Russia and Belarus
The Government has extended additional 35% trade tariffs imposed on goods that are the produce or manufacture of Russia or Belarus. The measure is symbolic support for Ukraine as it delivers a negligible increase in revenue over five years.
ENDS