Australia to Ban Non-Compete Clauses – What It Means for the Beauty and Aesthetic Industry

The Australian Government has announced a significant workplace reform in the 2025 Federal Budget: non-compete clauses will be banned for employees earning under $175,000. This shift is designed to promote wage growth, enhance job mobility, and boost productivity across the economy.  While it aims to level the playing field for workers, it also brings important implications for employers in the beauty and aesthetics industry.

What Are Non-Compete Clauses?

Non-compete clauses are contractual terms that restrict an employee from working for a competitor or starting a similar business for a period of time after leaving a job. In our industry, these clauses have been commonly used to protect client lists, service menus, and specialised techniques.

What’s Changing?

From 2027, these clauses will no longer be enforceable for employees under the income threshold, meaning beauty professionals, dermal clinicians, cosmetic nurses, and therapists will have more freedom to move between businesses, launch their own ventures, or take on roles that were previously contractually restricted.

What This Means for Employees

• Greater career flexibility
• Freedom to work in competing clinics without legal hurdles
• Opportunities to start a business or freelance
• Potential for increased earnings due to reduced restrictions

What This Means for Employers

• The need to find new, innovative ways to retain and motivate staff
• Greater emphasis on positive workplace culture, incentives, and career development
• Possible restructuring of contracts to focus on confidentiality, client protection, and intellectual property
• A chance to rethink what makes your clinic a magnet for talent

Why It Matters

This reform reflects broader changes in how the workforce operates and what professionals value – autonomy, growth, and fairness. While some clinic owners may feel uncertain, this is also a moment to reimagine staff loyalty as something earned through leadership, not legal constraint.

ABIC Wants to Hear From You

At ABIC, we are committed to representing your voice. We’ll be holding roundtable discussions, speaking to industry experts, and compiling a report to support both practitioners and business owners in navigating this change.

Tell us what you think:

• Do you welcome the change?
• What risks do you foresee?
• How can we balance freedom and protection?

Join the conversation on our social channels or email us your thoughts at [email protected]

Let’s shape the future of our industry – together.