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Injunction law developments

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Recent amendments to the Privacy Act 1988 (Cth), introducing a statutory tort providing redress for serious invasions of privacy, and the Budget announcement of a ban on non-compete clauses, are likely to significantly impact the availability of injunctions going forward.

Privacy Reforms 

The Privacy and Other Legislation Amendment Act 2024 (Cth) came into effect following the passage of the Bill on 29 November 2024 and receiving Royal Assent on 10 December 2024.

According to the Government’s summary of the Bill, for our purposes, it amends the Privacy Act 1988 (Cth) to introduce a statutory tort to provide redress for serious invasions of privacy.

Further, the Second Reading Speech explains that the cause of action in tort for serious invasions of privacy implements the Australian Law Reform Commission’s (ALRC’s) recommendation in its 2008 report For Your Information: Australian Privacy Law and Practice (ALRC Report 108). The Speech further explains:

15.    The statutory tort for serious invasions of privacy would provide a flexible framework to address current and emerging privacy risks and provide individuals with the ability to better protect themselves and seek compensation for a broader range of serious invasions of privacy, including physical privacy, as well as misuse of information. 

16.    Individuals would have a cause of action if they suffer an invasion of their privacy, either by an intrusion into their seclusion or by misuse of information, when: a person in their position would have had a reasonable expectation of privacy in all the circumstances; the invasion of privacy was intentional or reckless; and the invasion of privacy was serious. Where one or more competing public interests are identified by a defendant (for example, the public interest in freedom of expression), the plaintiff must also satisfy the court that the public interest in protecting their privacy outweighs those competing public interests. 

The speech also notes a range of defences and exemptions for legitimate activities that are essential in a free, safe and democratic society. This is intended to protect public interest in press freedom, and the legitimate activities of government that may be intrusive but necessary to ensure the proper administration of government, (including law enforcement) and keeping the community safe. 

The statutory tort provides for a range of remedies including compensation. It also specifies a cap on damages, ensuring summary judgment can be issued in all jurisdictions, and a role for the Information Commissioner to intervene with the leave of the court, or to assist as amicus curiae. 

Employment contract non-compete clauses

On 25 March 2025, as part of the Federal Budget, Treasurer Jim Chalmers, together with other Government Ministers, published a media release addressing the Government’s introduction of a ban on non-compete clauses.

 
The Treasurer explained that the reason for the initiative was “about encouraging aspiration, unlocking opportunity, lifting wages, and making Australia’s economy more dynamic and competitive. … The restrictions prevent workers from setting up their own shop and pursuing entrepreneurial ambition.” The following helpful summary is republished with the permission of the Tax Writers for Thomson Reuters (Professional) Australia Limited:

[217] Employment contract non-compete clauses to be abolished

The Government will ban non-compete clauses for more than 3m Australian workers in industries including childcare, construction and hairdressing. This has been spurred by the Treasury's Competition Review which heard troubling accounts regarding the misuse of non-compete clauses, including minimum wage workers being sued by former employers.
The ban on non-compete clauses will apply to workers earning less than the high-income threshold in the Fair Work Act (currently $175,000). The Government will also close loopholes in competition law that currently allow businesses to:
fix wages by making anti-competitive arrangements that cap workers' pay and conditions, without the knowledge and agreement of affected workers; and
use 'no-poach' agreements to block staff from being hired by competitors.
The Government will consult on policy details, including exemptions, penalties, and transition arrangements. Following consultation and passage of legislation, the reforms will take effect from 2027, operating prospectively to give businesses and workers time to adjust.

Source: Treasurer's Media release, 25 March 2025 

Cassandra Siciliano
By Cassandra Siciliano
Senior Publishing Editor

Cassandra is an experienced Senior Publishing Editor in the Analytical Law Team at Thomson Reuters with a history of over 30 years working in the information services industry after leaving practice in the Banking and Finance sector. She holds a Bachelor of Law from Sydney University. At Thomson Reuters, she has worked in areas including writing for Industrial Relations and Anti-Money Laundering publications, undertaken extensive indexing of both new and updated publications, commissioning across the Team’s portfolio and edited a wide range of works.

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