July 26, 2022
Australian Small Enterprise and Household Enterprise Ombudsman Bruce Billson has welcomed the Federal Authorities’s transfer to introduce laws to ban unfair contract phrases for small companies.
“This can be a actual drawback for small and household companies and it is vitally pleasing to see this election dedication being progressed so shortly by the Small Enterprise Minister Julie Collins and the Assistant Minister for Competitors, Charities and Treasury Andrew Leigh,” Mr Billson mentioned.
The Federal Authorities plans to introduce civil penalty provisions “outlawing using, and reliance on, unfair phrases in commonplace kind contracts”.
Mr Billson mentioned he has personally met many small companies who’ve highlighted this drawback.
“We see in lots of contracts we assessment, examples of unfair phrases. That is an space ripe for change,” Mr Billson mentioned.
“Energy imbalances between small enterprise and huge enterprises are exacerbated by unfair enterprise practices and unfair contract phrases.
“Addressing these points will assist in rebalancing these relationships and promote financial progress.
“I encourage massive enterprises doing enterprise with smaller companies to be a kindly buyer – affected person and understanding, with good and beneficiant intent, particularly round contract phrases.
“Small companies are run by actual individuals who deserve our respect and empathy on daily basis.”
Mr Billson mentioned he additionally welcomed the federal government’s transfer to replace the definition of a small enterprise on this laws to extend the eligibility threshold from fewer than 20 staff to fewer than 100 staff, and introduce an annual turnover threshold of lower than $10 million in its place threshold for figuring out eligibility.