NatRoad says small business livelihoods at risk in favour of large corporations under current contract terms
The National Road Transport Association (NatRoad) says it will be a race against time for the Federal Parliament to pass unfair contract legislation, following its introduction into the House of Representatives on February 9.
It has urged all sides of politics to back changes to Australian Consumer Law and the Australian Securities and Investments Commission Act 2001.
NatRoad CEO Warren Clark says his organisation was delighted to see the Morrison Government had answered its calls to bring on the legislation, renewed on February 3.
“We ask all sides of politics to show they’re serious about backing small business by passing the changes without delay,” Clark says.
“After the struggles of COVID, unfair contract terms are a major concern for our industry where livelihoods are put at risk by the imbalance in favour of big corporates.”
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Clark points out that there has been ample time for law makers to consider the changes.
Treasury released an exposure draft of a reform Bill in August last year, proposing a number of significant reforms aimed at strengthening protections for small businesses in relation to unfair contract terms.
In November 2020, Commonwealth, state and territory consumer ministers decided to make unfair contract terms unlawful and give courts the power to impose a civil penalty, as well as strengthening the regulator’s powers.
Clark says NatRoad wanted the regulator being given more power because small business members are reluctant to damage commercial relationships.
“They don’t want to endanger future work and they don’t have the resources to pursue legal remedies,” Clark says.
The reforms are included in Schedule 4 to the Treasury Laws Amendment (Enhancing Tax Integrity and Supporting Business Investment) Bill 2022.
Photography: Greg Bush