Exceptions
The rules don’t apply in certain circumstances, including where an employer engages an employee:
- for a specific task requiring specialised skills;
- under a training arrangement;
- for peak demand periods or emergency circumstances; or
- to back‑fill another employee who is temporarily absent.
Further exceptions include positions:
- above the high‑income threshold (e.g., $175,000 as at 1 July 2024; $183,100 as at 1 July 2025);
- funded by government for more than two years with no reasonable prospect of renewal; or
- in governance roles limited by a corporation/association’s rules.
Awards may also contain terms expressly permitting fixed term contracts that would otherwise fail the new requirements.
Example — Tijana (Research Scientist)
Tijana starts on 1 Dec 2025 on a contract to 1 Dec 2027, funded by a one‑off 3‑year government grant with no prospect of renewal. Although beyond two years, this falls within the government‑funded exception.