There are a number of important franchise law changes for franchisees and franchisors taking effect in 2016 so make sure you update your documents. Our franchise lawyers can assist you in reviewing or drafting your Franchise Agreement and Disclosure Document.

Unfair Contract Terms in Standard Form Contracts

If you’re a franchise owner or franchisor, then you should know that as of November this year, your franchise standard form contracts should not contain any unfair terms. Unfair terms include terms where only one party can terminate, or vary the terms of, the contract. This legislation only affects small businesses, or anyone dealing with small businesses.
What does this mean for you? Before November 2016, you should revisit and revise the terms of your standard form contracts (especially your franchise agreement!) to remove or amend any unfair terms. If any contract terms are found to be unfair by a Court or tribunal, your contract (or part of your contract) may be unenforceable.

Stamp Up!

From the 4 January 2016, the Basic Postage Rate in Australia will increase from 70 cents to $1. This price increase means that franchisors will need to update their disclosure documents to ensure that the increase in postage is reflected. Sadly, you will also need to set aside a few more cents each month for your beloved stamp collection.

Reforms in Underquoting for Real Estate Agents (NSW only)

For franchisors operating in the real estate sector in NSW, you should be up to speed and be familiar with the changes that have come into effect on the 1 January 2016. Some key things to note are:

  • When estimating the price of a property, agents cannot be vague or undervalue quotes, such as saying “offers above $250,000” or “$250,000+”.
  • Agents must record and keep any statements about prices quoted to consumers for up to three years.
  • You may face fines of up to $22,000 as well as losing your commission and any fees earnt from the sale of the property if you are found to underquote in a manner contrary to the new laws.

For more information about the reforms, visit the NSW Fair Trading website.

Superannuation Capped

The government has also decided to cap the gross amount payable to individuals defined benefit income stream to 10%. This change means that if you earn $50,000 per annum from the defined benefit income stream, and you have a tax-free component of $6,000, then your assessable income will be calculated as $45,000 since your tax-free component is now capped at 10% (or $5,000 for this example).

Tax Avoidance Laws

From 1 January 2016, significant global entities that earn over $1 billion in annual global income will be required to become more transparent with the Australian government by filing general purpose financial statements. This means that companies with established schemes that divert revenue offshore to obtain tax benefits in Australia can now be cancelled at the discretion of the ATO.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Emma Jervis
Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at

View Privacy Policy