Protection for Small Business from 1st July

Protection for Small BusinessRecently Prime Minister Abbott and Small Business Minister Billson announced measures designed to protect small businesses against misuse of market power by larger businesses.

At times, small businesses (including a number of our clients) have had no option but to accept terms under a “take it or leave it” contract such as might typically be presented to a retailer in a shopping centre, or which might be contained in a contract for the supply of goods to a major retailer. Some small businesses have been at the wrong end of a contract that allows a bigger business to revise the price of goods or services, or to terminate a contract, where the small business has no such right. In these types of cases, the law could declare such clauses invalid.

The measures, designed to commence on 1st July 2015, were promised by the previous Labor government, but will need the approval of the territories. If the new rules see the light of day, they will be a helpful weapon for small businesses in the “David v Goliath” battle which many will invariably face.

Call us to speak to an expert on the expected measures, or to make an enquiry about our business advisory services.

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