Small business contract
Practical Law ANZ Glossary w-003-9195 (Approx. 3 pages)
Glossary
Small business contract
For the purposes of the Australian Consumer Law (ACL):
Prior to 9 November 2023, a standard form contract for the supply of goods or services, or the sale or grant of an interest in land, where:
- At the time of the contract, at least one party to the contract is a business with fewer than 20 persons.
- Either:
- the upfront price payable under the contract does not exceed $300,000; or
- the contract has a duration of more than 12 months and the upfront price payable under the contract does not exceed $1 million.
From 9 November 2023, a standard form contract for the supply of goods or services, or the sale or grant of an interest in land, where at the time of the contract at least one party to the contract, either:
- Employs less than 100 persons.
- Has an annual turnover of less than $10 million.
For further information on unfair contract terms and small business contracts, see Practice note, Unfair contract terms and protections for small businesses.
For further information on the reforms introduced by the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 (Cth), see Practice note, Unfair contract terms and protections for small businesses: Enhancements to the unfair contract terms regime and Legislation tracker, Unfair contract terms regime reforms.
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