New Unfair Contract Terms Act Set to Protect Small Businesses
The Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Act 2015 extends the unfair contract term protections (previously afforded only to consumers) to small business.
The purpose of the Act, as set out in the explanatory memorandum, is to “reduce the incentive to include and enforce unfair terms in small business contracts, provide a more efficient allocation of risk in these contracts and support small business' confidence in agreeing to contracts”.
The extension of the regime is limited to standard form contracts where at least one party is a small business and where the upfront price payable is less than $300,000 or less than $1,000,000 if the duration of the contract is more than 12 months.
To find out more, NECA members can simply log in. If you are not a member, find out the benefits of being a part of your industry association here, or contact Leah Boyce, Marketing and Member Services at NECA SA/NT on (08) 8272 2966.