The changes to the law apply to:

• standard form contracts made or renewed on or after Thursday 9 November 2023
• a term of a contract that is varied or added on or after Thursday 9 November 2023.

The new Australian Consumer Law prohibits businesses from proposing, using or relying on unfair contract terms with consumers and businesses. The Courts will be able to impose substantial penalties on businesses and individuals who include unfair contract terms.

The changes to the law will also expand coverage to more small business contracts. The threshold for small business contracts will be increased to include businesses that employ fewer than 100 persons or have an annual turnover of less than $10 million. The contract value threshold will also be removed.

You can find more information about changes to the unfair contract terms laws by reading the media release or visiting the ACCC’s website