NOTE: The information in this article has been updated as of July 2021. Click here for updates.
The new Treasury Laws Amendment (Acquisition as Consumer—Financial Thresholds) Regulations 2020 (Regulations) have expanded the definition of ‘consumer’. This will mean that more consumers can rely on the various protections afforded by Australian Consumer Law.
The Regulations will come into effect on 1 July 2021 and it will increase the monetary threshold in the definition of ‘consumer’ under the Australian Consumer Law and the Australian Securities and Investments Commission Act 2001 (Cth) from $40,000 to $100,000. This comes as a result of the Consumer Affairs Australia and New Zealand (CAANZ) review of the Australian Consumer Law. CAANZ noted that the original $40,000 threshold was introduced in 1986, and since then inflation has diminished the necessary protections afforded by this threshold
Given that there is a significant time between now and when the Regulations will take effect, we can expect the ACCC to commence enforcing these Regulations immediately after 1 July 2020 as a matter of priority. Therefore businesses should take this time to update their operations, marketing and compliance programs to comply with the broader range of goods and services that will be captured by the ACL.
If you require assistance in updating your operations, various contracts or have any questions, feel free to contact me at or 1300 033 934.