The Albanese Labor Government is delivering on a promise to protect more small businesses from unfair contract terms.
Small business doesn't always mean small operations, some invest millions of dollars and employ substantial workforces, but are still presented with take it or leave it contracts by much larger national and multinational firms.
Today, the Government has launched consultation on extending unfair contract terms protections to all franchisees, to help ensure these businesses are not locked into one‑sided contracts.
A consultation paper released today seeks feedback on extending the ban on unfair contract terms to franchisees covered by the Franchising Code of Conduct, including automotive dealers. The reform would help level the playing field between franchisors and franchisees, ensuring all franchisee operators are better protected from unfair contract terms.
In 2022, the Albanese Government outlawed unfair contract terms, expanding protections for small businesses and consumers. These reforms increased the number of small businesses covered and, for the first time, empowered the Australian Competition and Consumer Commission and the Australian Securities and Investments Commission to seek penalties against companies that breach the law.
The Government is now reviewing the operation of the 2022 reforms and examining how these protections can be extended to all franchisees. The consultation seeks feedback on the unfair contract terms provisions in both the Australian Consumer Law and the Australian Securities and Investments Commission Act 2001, allowing the Government to assess their effectiveness and identify potential improvements.
These reforms are part of the Albanese Labor Government's commitment to promoting healthy competition and giving all small businesses a fair go, while strengthening the long‑term resilience of the franchising sector.
The Government has also committed $7.1 million over two years from 2025-26 to strengthen the Australian Competition and Consumer Commission's enforcement of the Franchising Code of Conduct, and to enhance its engagement and education activities with franchisors and franchisees.
Submissions can be made via the Treasury Consultation Hub until 17 March 2026.
