The Small Business and Trade Council of Australia (SBTC) has lodged a detailed submission to the Australian Treasury calling for a comprehensive review and strengthening of unfair contract terms (UCT) protections for small businesses. The submission follows widespread member feedback that existing laws still leave many sole traders and small operators exposed when dealing with larger commercial partners.
The Problem
Standard-form contracts in commercial leasing, telecommunications, logistics and supply chain agreements frequently contain provisions that small businesses have no meaningful ability to negotiate. Despite recent UCT reforms extending to small businesses, SBTC members have reported ongoing challenges in enforcing their rights and understanding which provisions qualify as “unfair”.
According to data from the Australian Competition and Consumer Commission (ACCC), complaints from small businesses about unfair contract terms have remained consistently high, with retail and franchising sectors among the most frequently cited.
Key Recommendations
- Expand the definition of “small business” in the UCT framework
- Introduce a model contract term library as a reference baseline
- Require government agencies to publish plain-English guidance on unfair terms by industry
- Fund the ACCC to conduct annual compliance audits in high-risk sectors
For more information on the UCT framework and your rights, visit the Fair Work Ombudsman or contact the SBTC policy team.
