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In light of the proposed ban on non-compete clauses, an industry expert has urged real estate agencies to focus on building a strong foundation that can adapt to changes in personnel.
As part of the 2025–26 budget, the federal government outlined plans to ban non-compete clauses for workers who earn less than the high-income threshold of $175,000 per annum.
Following consultation with industry bodies and the subsequent passage of legislation in Parliament, the reforms banning non-compete clauses are currently set to take effect from 2027.
Non-compete clauses in real estate prevent agents from working for a competing agency or starting their own competing business following the termination of their employment.
Laing+Simmons’ head of people and growth, Jacqui Barnes, said that non-compete clauses can create tension between agents and owners, and occasionally lead to disputes over sensitive information, such as client data.
“It’s a real estate business reality that agents may choose to move on, partnerships may dissolve, and in a high-pressure environment, relationships can sour,” Barnes explained.
For real estate businesses wary of a potential ban on non-compete clauses, Barnes said the proposed reform will not change the existing laws around data retention and ownership for agencies.
“Fights over who has the right to data often emerge and at this point, the law is clear. The proposed ban on non-compete clauses will not change the fact that the business maintains ownership of the data collected by its agents,” she explained.
While Barnes emphasised that “illegal actions by agents should always be treated as such”, she said that agencies often over-prioritise fighting over data, as opposed to investing in the data itself.
“Business owners who lose a quality agent should invest in leveraging the data that agent has collected while part of the team,” Barnes said.
“Numbers in the system are also customers, either existing or potential, who business owners might be wise to engage with. Or, ideally, re-engage with,” she added.
Additionally, Barnes said that agencies can best prepare themselves for the potential ban by focusing their efforts on building personal connections with customers.
“Instead of fearing the impacts of a ban on these clauses, redirect that energy to building the relationships with your customers that can endure a potential change in personnel,” she recommended.
Moreover, Barnes further noted that agencies can also prepare for the proposed ban by offering a culture of “care and support” to its agents.
“The challenge for businesses is to keep talent, which has always been the case, and this is why culture is so important,” Barnes said.
“A supportive, driven and enjoyable environment to work in is an environment an agent won’t want to leave,” she added.
Ultimately, Barnes urged business owners worried about the ban to view the change as an opportunity to exploit.
“It’s an investment which might ultimately prove more rewarding and less costly while delivering better long-term outcomes,” she concluded.
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