Australia: Contracts and Commercial Law

As investor involvement and expectations increase, startups and SMEs are seeing more shareholder activism. This can include investors challenging business decisions or raising concerns about governance. Companies need to understand the legal framework and manage these issues carefully to protect the business and maintain investor confidence.

A number of companies listed on the Australian Securities Exchange (ASX) can expect to be captured by new mandatory sustainability reporting requirements as of this financial year.

From 1 October 2026, Visa, Mastercard and eftpos can ban businesses from adding surcharges to card transactions, enforced through merchant agreements.

Franchising in Australia operates under a well-developed legal regime. The Franchising Code of Conduct, which has the force of law under the Competition and Consumer Act 2010 (Cth), sets minimum standards for disclosure, franchise agreements, and the conduct of the franchise relationship.

Most prospective franchisors are focused, reasonably enough, on the beginning; the first territory, the first franchisee, the first year of trading. The exit is, at best, a distant abstraction. But the decisions made at the outset of a franchise system shape the value of that system more than almost any other factor, and by the time a founder is actively preparing for sale, most of the choices that will determine the valuation have already been made. The exit is not an event at the end of the journey. It is a design principle that either runs through the system from day one, or does not.

From 22 January 2026, Australia’s new Combatting Antisemitism, Hate and Extremism (Criminal and Migration Laws) Act 2026 creates serious criminal liability for anyone who funds, supports, or promotes prohibited hate groups. Businesses are not exempt. The Act’s broad definitions of ‘support’ and ‘funding’ mean that ordinary commercial activity, from charitable donations to supplier contracts, can now carry criminal risk.

Explores why preliminary documents are used, when they may become binding (intentionally or otherwise) & practical steps to manage risk during negotiations.

The Australian Competition and Consumer Commission has accepted a court-enforceable undertaking from Aidacare Pty Ltd after the healthcare equipment supplier admitted to making false or misleading representations about consumer rights and using unfair contract terms. This case demonstrates how standard form contracts that limit consumer guarantees can face regulatory scrutiny, with remedies extending to all affected customers over a defined period.

As it had foreshadowed, the Australian Government has released an exposure draft of the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Bill).