This bill became law on Nov 9th, 2022.
Budget, tax & economy
Companies that break key competition or consumer laws can now face a maximum penalty based on whichever is higher: $50 million, three times the benefit, or 30% of turnover during the breach period.
Weak penalties and a loophole that did not punish unfair terms left competition and consumer laws with less bite, and many small businesses outside contract protections. The bill raises maximum penalties and lets regulators penalise unfair standard contract terms while expanding those protections to more small businesses.
Australia already had competition and consumer protections, but key penalty settings had fallen behind and unfair terms in standard form contracts could often be struck out without attracting penalties, while many smaller businesses sat outside the contract protections. After a 2018 OECDThe international body whose 2018 report is cited as evidence that Australian competition penalties were too low. report found Australia’s competition penalties were low by international standards, the government used this 2022 bill to lift penalties, punish the use of unfair terms and widen small business coverage, with the Act passing in November 2022 and the unfair contract termA contract clause that causes a big one-sided problem for the weaker party and is now punishable in some cases. changes beginning after a 12-month delay.
No significant public case against the bill itself is recorded so far, with the main criticism being that the government oversold or misstated how much budget revenue the tougher penalties would raise. Those complaints came from Coalition speakers who still supported the reforms, so the criticism stayed narrow and political rather than amounting to substantive opposition to the bill’s consumer and competition measures.
Hon Dr Andrew Leigh MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 09 Nov 2022
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
42 days
From introduction to the latest recorded parliamentary step
Meaning
Companies that break key competition or consumer laws can now face a maximum penalty based on whichever is higher: $50 million, three times the benefit, or 30% of turnover during the breach period.
People who are not companies can now face maximum penalties of $2.5 million for covered breaches of competition and consumer laws.
Businesses can now be penalised for putting unfair terms into standard form consumer or small business contracts, and also for trying to use or enforce those terms.
More small businesses are now covered by unfair contract termA contract clause that causes a big one-sided problem for the weaker party and is now punishable in some cases. protections, including businesses with fewer than 100 employees or less than $10 million in annual turnover.
The unfair contract termA contract clause that causes a big one-sided problem for the weaker party and is now punishable in some cases. changes started after a 12-month delay and mainly apply to new contracts, and to older contracts only when they are renewed or varied.
if the court cannot determine the value of the benefit obtained—30% of the body corporate’s adjusted turnover during the breach turnover period for the offence, act or omission.Treasury Laws Amendment (More Competition, Better Prices) explanatory memorandum
The maximum penalty for breach of a corresponding civil penalty provision in Parts IV, IVBA, X and XICA of the CCA, and an offence or civil penalty provision in the ACL by a person that is not a body corporate will increase from $500,000 to $2.5 million.Treasury Laws Amendment (More Competition, Better Prices) explanatory memorandum
prohibiting the proposal of, use of, application of, or reliance on, unfair contract terms in a standard form consumer or small business contract;Treasury Laws Amendment (More Competition, Better Prices) explanatory memorandum
The amended definition requires that one party to a contract is a business that either employs fewer than 100 persons or has an annual turnover of less than $10,000,000 for the previous income year.Treasury Laws Amendment (More Competition, Better Prices) explanatory memorandum
The unfair contract terms amendments (other than item 58) will apply to new standard form contracts that are made at or after the commencement of Schedule 2 to the Bill. Schedule 2 to the Bill will commence on the day after the end of the period of 12 months beginning on the day the Bill receives Royal Assent.Treasury Laws Amendment (More Competition, Better Prices) explanatory memorandum
Context
Australia already had competition and consumer protections, but key penalty settings had fallen behind and unfair terms in standard form contracts could often be struck out without attracting penalties, while many smaller businesses sat outside the contract protections. After a 2018 OECDThe international body whose 2018 report is cited as evidence that Australian competition penalties were too low. report found Australia’s competition penalties were low by international standards, the government used this 2022 bill to lift penalties, punish the use of unfair terms and widen small business coverage, with the Act passing in November 2022 and the unfair contract termA contract clause that causes a big one-sided problem for the weaker party and is now punishable in some cases. changes beginning after a 12-month delay.
OECDThe international body whose 2018 report is cited as evidence that Australian competition penalties were too low. finds Australia's competition penalties are low
A 2018 OECDThe international body whose 2018 report is cited as evidence that Australian competition penalties were too low. report said average and maximum competition penalties in Australia were substantially lower in practice than in comparable jurisdictions.
Treasury Laws Amendment (More Competition, Better Prices) explanatory memorandum ↗Government introduces a bill to raise penalties and protect more small businesses
The second reading speech said the bill would help ease cost-of-living pressures by increasing penalties for breaches of competition and consumer laws and expanding protection from unfair contract terms.
Hansard ↗Parliament passes the bill
Both houses passed the bill in the same form, clearing the way for higher penalties and a new penalty regime for unfair contract terms.
Parliamentary timeline ↗Royal Assent turns the bill into law
Royal Assent made the measures law, while the unfair contract termA contract clause that causes a big one-sided problem for the weaker party and is now punishable in some cases. changes were set to start after a further 12-month transition period.
Parliamentary timeline ↗Unfair contract termA contract clause that causes a big one-sided problem for the weaker party and is now punishable in some cases. penalties and wider small business coverage begin
From the end of the 12-month delay, businesses faced penalties for proposing, using or relying on unfair standard form terms and the protections extended to more small businesses.
Treasury Laws Amendment (More Competition, Better Prices) explanatory memorandum ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Considered by scrutiny committee (20/10/2022): Parliamentary Joint Committee on Human Rights; Report 5 of 2022
Considered by scrutiny committee
APH bill page notesThe bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal Assent, turning the bill into an Act.
Key criticism
No significant public case against the bill itself is recorded so far, with the main criticism being that the government oversold or misstated how much budget revenue the tougher penalties would raise. Those complaints came from Coalition speakers who still supported the reforms, so the criticism stayed narrow and political rather than amounting to substantive opposition to the bill’s consumer and competition measures.
No party represented in the debate opposed the bill itself.
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Start here — lead voices
Leigh supports the bill, saying it will ease cost-of-living pressures by lifting competition penalties and strengthening protections against unfair contract terms for consumers and small businesses.
Read in Hansard ↗Pike says the coalition will support the bill because it strengthens penalties and unfair contract termA contract clause that causes a big one-sided problem for the weaker party and is now punishable in some cases. protections for consumers and small businesses.
Read in Hansard ↗Aaron Violi supports the bill because he says it will protect small business and consumers by lifting penalties for unfair and anticompetitive conduct.
Read in Hansard ↗Coleman says the opposition will support the bill because its unfair contract termA contract clause that causes a big one-sided problem for the weaker party and is now punishable in some cases. and small business protections are sensible, but he argues it is badly overpromised on revenue and delivers far less than the government claimed.
Read in Hansard ↗All speeches by bloc
4 speakers · 5 contributions · 4 support
Hansard records 2 separate contributions by Andrew Leigh on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Leigh supports the bill, saying it will ease cost-of-living pressures by lifting competition penalties and strengthening protections against unfair contract terms for consumers and small businesses. He argues the changes will deter misconduct, improve competition and prices, and better protect weaker contract parties.
“This bill will deliver on the government's election commitment to help ease the cost of living by increasing penalties for breaches of competition and consumer laws and to provide greater protections for small businesses from unfair contract terms.”Read this contribution in Hansard ↗
Second reading speech
Leigh supports the bill and says it will help protect households and small businesses by lifting penalties for anticompetitive conduct and banning unfair contract terms. He argues Australia needs stronger competition laws to curb market power, improve prices and give consumers and small businesses a fair go.
“Since at least the days of Adam Smith, economists have recognised the central role of competition in driving growth and productivity. If we are to increase living standards and deliver for consumers, the Australian economy needs a dose of competition reform. By strengthening the deterrents against bad behaviour by monopolists, we make our economy fairer, more dynamic and more competitive. I commend this bill to the House.”Read this contribution in Hansard ↗
“So I'm very pleased that our government, the Albanese Labor government, is introducing this legislation to strengthen unfair contract term protections for small businesses and consumers. As I said, I'm pleased to hear those opposite will be supporting it.”Read the full speech in Hansard ↗
“The Bill will deliver on the Government's election commitments to help ease the cost of living by increasing penalties for breaches of competition and consumer laws, and to provide greater protections for small businesses from unfair contract terms.”Read the full speech in Hansard ↗
“The bill includes a requirement to review the reforms two years after commencement, and the government will also welcome feedback from stakeholders ahead of this review. I commend the legislation to the Senate.”Read the full speech in Hansard ↗
7 speakers · 7 support
“When it comes to good public policy, I understand the importance of bipartisanship, subject to the needs and views of my electorate, and, as such, I stand with my coalition colleagues in support of this bill.”Read the full speech in Hansard ↗
“I rise to speak in support of the Treasury Laws Amendment (More Competition, Better Prices) Bill 2022. This bill significantly increases the fines and penalties that can be imposed upon Australian businesses for breaches of competition and consumer law and, most importantly, it protects small business.”Read the full speech in Hansard ↗
“I want to turn to the provisions of the bill. We do support it. We are very disappointed but not surprised that it raises 89 per cent less than they said it would, but there are important provisions around making unfair contract terms unlawful, giving the courts power to impose additional penalties, increasing some of the penalties that protect small businesses against unfair contract thresholds, and making remedies more flexible so that a court can impose remedies that are most suited to the particular situation. It also improves clarity around standard form contracts so that everyone who's going into a contractual situation—particularly small businesses, who are often at a disadvantage when negotiating with big businesses—is aware of what the standard form contract terms are, and that they willingly go into variations of those terms. These are sensible things and we will support them. It's just a shame that the financial impact of this is half a billion dollars worse than the Labor Party said it would be.”Read the full speech in Hansard ↗
“I rise to give support to the Treasury Laws Amendment (More Competition, Better Prices) Bill 2022. At the outset, I say it's a pleasure to follow the member for Bowman and I congratulate him on his considered and eloquent speech in this House today.”Read the full speech in Hansard ↗
“On the basis of that, I commend the bill to the House.”Read the full speech in Hansard ↗
“It's wonderful to stand and speak on Treasury Laws Amendment (More Competition, Better Prices) Bill 2022. We love competition and we love lower prices, so the opposition will be supporting the legislation.”Read the full speech in Hansard ↗
“The opposition will be supporting this bill but will not be letting Labor off the hook on their failure to manage the budget, and we won't be supporting their higher taxes to pay for their poor budget management.”Read the full speech in Hansard ↗
1 speaker · 1 support
“by leave—The government is to be commended for bringing forward this bill. It will increase penalties for anticompetitive conduct and it will expand the scope of unfair contract terms. The Greens will be supporting this legislation accordingly.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal Assent, turning the bill into an Act.
Parliamentary Joint Committee on Human Rights; Report 5 of 2022
Considered by scrutiny committee
Considered by scrutiny committee (20 Oct 2022): Parliamentary Joint Committee on Human Rights; Report 5 of 2022
APH bill page notes
