Major Legal Shake-Up: Australia Bans Unfair Contract Clauses

New Rules for Contracts: It's not just about removing unfair terms anymore; it's illegal to use them.
Major Legal Shake-Up: Australia Bans Unfair Contract Clauses

Major Legal Shake-Up: Australia Bans Unfair Contract Clauses – Here’s What You Need to Know!

These changes are from the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 and came into fruition on the 9th of November 2023.

Click on the video below for the full breakdown.

What’s Changing:

Stricter Contract Rules: If your contract has unfair terms, the company that presented the contract to you could face significant fines. Removing the unfair parts is no longer enough; using them is now against the law.

Heavier Penalties: The fines for not following these rules have increased significantly. Depending on the company’s income, they can reach up to 50 million AUD.

Preparation Time: Companies had until the 9th of November to review their contracts and ensure they meet the new standards. Remember that other consumer law penalties have already increased since the 10th of November, 2022.

What You Should Do:

Review Your Contracts!

  1. Carefully check the contracts you are presented with.
  2. Look for any terms that might be unfair.
  3. Reach out to us if you are uncertain.

That is what we are here for!

Some extra advice from the Australian Competition and Consumer Commission:

Make sure your contract terms are fair and necessary.

Don’t sign terms that are not your responsibility under consumer laws.


These changes mean you must be extra careful with how your contracts are written and agreed upon. It’s about ensuring fairness and protecting your business. If you need clarification about how these changes affect you, please feel free to reach out if you have questions or need further assistance.

P.S. We’ve created something special that I think you’ll find extremely useful. Given the harsh realities in the construction industry at the moment, we have put together a report that outlines the 3 Items You Must Negotiate In Every Contract. The report is packed with insights we’ve gathered from negotiating over 4,000 construction contracts. It’s all about drastically reducing risks in your contracts and boosting profits.

Just click this link to access it (it’s free). Hope you find as much value in it as some of our other clients have.

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