Workers face a choice at the upcoming election - a taxpayer-funded lunch or an easier way to quit their jobs.
The Albanese government is looking to ban non-compete clauses for workers earning less than $175,000.
Under existing rules, businesses can stop or restrict workers from moving to a competing employer.
Labor and unions say the change will ensure workers cannot be "handcuffed" to their jobs and will help them get better pay in addition to adding billions to the economy each year.
The coalition has proposed tax deductions of up to $20,000 of business related meal and entertainment purposes provided to clients and employees, for small businesses with a turnover of up to $10 million.
The measure excludes alcohol.
The $20,000 instant asset write-off scheme is set to expire at the end of June, as it was not extended in Tuesday's federal budget.
The two major parties are disagreeing over why that has happened.
Council of Small Business Organisations Australia chief executive Luke Achterstraat said non-compete clauses were legitimate and helped protect businesses which had invested into building a client base and intellectual property.
"It's never really a good idea for government to intervene into contracts," he told AAP.
"There's a risk in pursuing a blanket ban in an irresponsible way, it can actually undermine business growth and business success, and you can see less people being employed."
Mr Achterstraat said the clauses gave protections to smaller businesses that didn't have large legal teams at their disposal.
Seri Feldman-Gubbay, a senior solicitor at the Redfern Legal Centre, said the changes meant workers would not have to remain in "exploitative and unlawful working conditions".
"When non-compete clauses were first introduced, they were meant to protect legitimate business interests. However, their widespread use and onerous restrictions are deeply inappropriate," she said.
"I frequently assist workers earning under $70,000 who have clauses in their contract that prevent them from working in the same industry anywhere in Australia for up to 12 months."
The government was quizzed about its proposed workplace changes during Question Time on Wednesday, with Labor defending the measures as good for workers.
"The government's made clear that we'll take on those non-compete clauses, because there's lots of things an employer can lawfully do, but they should not be able to prevent you from getting the next job," cabinet minister Tony Burke said.
The non-compete clause changes will take effect in two years' time if parliament approves.
