If your business regularly signs standard-form contracts, proposed legal changes could improve your bargaining position.
Many small businesses have little opportunity to negotiate contracts with larger organisations. Instead, they’re often presented with standard-form agreements on a take-it-or-leave-it basis.
The federal government has announced plans to strengthen protections by giving the ACCC and ASIC greater powers to enforce Australia’s unfair contract term laws.
Why the reforms matter
The proposed changes would allow regulators to issue infringement notices for breaches, making enforcement faster and more flexible than relying solely on court action.
They build on earlier reforms that:
- Made unfair contract terms illegal.
- Increased maximum penalties to $100 million per offence.
- Expanded protections to more small businesses.
The changes were recommended following a government review, which found the existing regime had been successful but could be strengthened further.
Contracts deserve a closer look
While stronger protections are welcome, they don’t remove the need to carefully review important agreements before signing.
Whether it’s a supplier agreement, equipment lease or finance contract, understanding key terms upfront can reduce the risk of unexpected costs and disputes later.
