Laws we administer
ASIC administers and enforces a range of legislation.
We administer the following legislation:
- Australian Securities and Investments Commission Act 2001 (ASIC Act)
- Business Names Registration Act 2011
- Corporations Act 2001 (Corporations Act)
- Insurance Contracts Act 1984
- National Consumer Credit Protection Act 2009 (National Credit Act).
We also administer parts of the following legislation:
- Banking Act 1959
- Life Insurance Act 1995
- Medical Indemnity (Prudential Supervision and Product Standards) Act 2003
- Retirement Savings Accounts Act 1997
- Superannuation (Resolution of Complaints) Act 1993
- Superannuation Industry (Supervision) Act 1993 (SIS Act).
A digital copy of each Act can be obtained from the Federal Register of Legislation.
Unfair contract terms law
Since 1 July 2010, ASIC has administered the law dealing with unfair terms in standard form consumer contracts for financial products and services. The unfair contract terms law was extended to cover standard form small business contracts from 12 November 2016 and insurance contracts for consumers and small businesses from 5 April 2021.
The law gives courts a power to find that a term is 'unfair'. If a term is found to be unfair, it will be void – which means it is not binding. The rest of the contract will continue to bind the parties if it is capable of operating without the unfair term.
The unfair contract terms law helps ASIC perform our role in promoting investor and financial consumer trust and confidence, and ensuring fair, orderly and transparent markets.
Unfair contract term protections for consumers
The unfair contract term protections for consumers were introduced as part of the broader national Australian Consumer Law, which was fully implemented from 1 January 2011. Aspects of this law, including the unfair contract term protections, are also reflected in the Australian Securities and Investments Commission Act 2001.
The unfair contract terms law applies to a term in a contract if:
- it is a consumer contract
- the contract is a 'standard form contract', and
- the contract is for a financial product or service.
For standard form consumer contracts of insurance, the unfair contract term protections apply to contracts entered into, or renewed, on or after 5 April 2021. If a term of a contract entered into before 5 April 2021 is varied on or after 5 April 2021, the protections will apply to that term but not to the rest of the contract.
- Find out more about unfair contract term protections for consumers
Unfair contract term protections for small businesses
Like consumers, small businesses have limited market power and a reduced ability to vary 'take it or leave it' contracts. In recognition of this, the unfair contract terms law also provides protections for small businesses.
The unfair contract term protections apply to standard form small business contracts entered into, or renewed, on or after 12 November 2016, where:
- the contract is for the supply of financial goods or services
- at least one of the parties is a 'small business' (i.e. a business employing fewer than 100 people, including casual staff employed on a regular and systematic basis, and part-time employees as an appropriate fraction of a full-time equivalent employee), or has a turnover for the last income year of less than $10 million, and
- for contracts for financial products or services, the upfront price payable under the contract does not exceed $5 million (the ‘cap’) – for other types of contracts, there is no cap.
For standard form small business contracts of insurance, the unfair contract term protections apply to contracts entered into, or renewed, on or after 5 April 2021, where the above criteria are met.
If a term of a small business contract entered into before 12 November 2016 is varied on or after 12 November 2016, the protections will apply to that term but not to the rest of the contract. If a term of a small business contract of insurance entered into before 5 April 2021 is varied on or after 5 April 2021, the protections will apply to that term but not to the rest of the contract.
- Find out more about unfair contract term protections for small businesses