Big business to pay penalties for unfair contracts under national plan to better protect SMEs

Small businesses will soon be better protected when entering into contracts with big business after federal and state governments made a joint agreement to outlaw unfair contract terms.

Unfair contract protections were extended to small businesses back in 2016, however, under current laws, unfair contract terms are not illegal, which means contract terms can be voided by courts but civil penalties cannot be imposed.

This week’s agreement will give courts the power to impose penalties when a breach occurs, and follows a lengthy consultation process.