Guides · Australian Business Legal Guide · Chapter 5 of 7
Regulation and compliance
Last reviewed 14 August 2026
Australian Consumer Law, unfair contract terms, privacy, and the licensing regimes that catch businesses by surprise.
In short
Every Australian business is subject to the Australian Consumer Law, and since November 2023 the unfair contract terms regime carries civil penalties for proposing or relying on an unfair term in a standard-form small business or consumer contract. Compliance is now a drafting issue, not just a conduct issue.
Regulation is where the cost of ignorance is asymmetric. A poorly drafted commercial clause costs you a negotiation; a non-compliant standard-form term or a misleading claim can attract a regulator.
Australian Consumer Law
The ACL, in Schedule 2 to the Competition and Consumer Act 2010 (Cth), applies nationally and cannot be contracted out of. The provisions that most often bite:
- Misleading or deceptive conduct. No intention to mislead is required. Overstated marketing claims, silence about a material fact, and inflated "was/now" pricing all fall here.
- Consumer guarantees. Statutory guarantees of acceptable quality, fitness for purpose and due care attach to most supplies under the relevant threshold, and to goods ordinarily acquired for domestic use regardless of price. "No refunds" signage is itself a breach.
- Unconscionable conduct, product safety and mandatory reporting obligations.
Our ACL guide works through this in detail.
Unfair contract terms
The regime applies to standard-form contracts with consumers and with small businesses that meet the statutory thresholds. A term is unfair if it would cause a significant imbalance, is not reasonably necessary to protect a legitimate interest, and would cause detriment if relied on. Unilateral variation and termination rights, one-sided indemnities and automatic rollovers are the usual suspects.
The critical change is remedial: it is no longer just that an unfair term is void. Proposing or applying one can attract substantial civil penalties. If you have a standard-form agreement that has not been reviewed since 2023, that is the review to do first. See unfair contract terms.
Privacy and data
The Privacy Act 1988 (Cth) and the Australian Privacy Principles apply to most businesses with turnover above the small business threshold, and to some below it regardless of size (health service providers, businesses trading in personal information, credit reporting participants, and contracted service providers to government). Obligations cover collection notices, use and disclosure, overseas disclosure, security, access and correction, and the Notifiable Data Breaches scheme.
Practically: know what personal information you hold and where, have a privacy policy that describes what you actually do, contractually bind your processors, and have a written data breach response plan before you need it. Reform of the Act is ongoing and the direction of travel is more obligation, not less. See privacy law in 2026.
Licensing regimes that catch people out
- Financial services. Providing financial product advice or dealing usually requires an AFSL or authorised representative status.
- Credit. Consumer lending and broking require an Australian credit licence.
- Labour hire. Licensing regimes operate in Victoria, Queensland, South Australia and the ACT, with penalties for both providers and hosts.
- Building and construction, security, liquor, transport, health. All state-based, all with their own contracting consequences.
A workable compliance rhythm
For most businesses under 100 people, compliance does not require a program. It requires a short annual review: standard terms, privacy policy and collection notices, marketing claims, licence renewals, insurance adequacy, and the register of who can bind the company. That review is a fraction of the cost of responding to a regulator.
Where this fits
Our advice and compliance practice runs exactly this review, and our Fractional General Counsel engagement keeps it current for businesses that would rather not build an internal legal function.
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Send us a note about what you're working on. We'll respond within one business day and, if we're a fit, book a free 15-minute consultation with a senior lawyer.
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