We expect many of you are eagerly awaiting the introduction of the unfair contract terms regime to small businesses. You will be pleased to hear that the Bill has been progressed in Parliament, with the Second Reading occurring on 17 August 2015 and the Third Reading occurring on 14 September 2015. A number of amendments were made by the Senate, increasing some of the prescribed threshold limits.
These changes mean that a contract will be a small business contract if the upfront price payable under the contract does not exceed $300,000 (previously $100,000) or where the contract has a duration of more than 12 months, the upfront price payable does not exceed $1,000,000 (previously $250,000). This will broaden the scope of the unfair contract term regime in relation to small business.
On 20 October 2015 the bill was passed by both houses of parliament. There will be a 12 month transition period. So this will be effective in the end of 2016.