Unfair Contract Terms in Western Australia
Reviewed by the Commoner Law Editorial Team. Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
The ACL protects you from unfair terms in standard form contracts — the kind of “take it or leave it” agreements you sign with phone companies, gyms, landlords, and online services:
- What makes a term unfair: A term is unfair if it causes a significant imbalance in the parties’ rights, is not reasonably necessary to protect the business, and would cause you detriment (financial or otherwise).
- Common unfair terms: One-sided cancellation clauses, terms letting the business change the price or contract without notice, terms limiting your right to sue, and excessive early termination fees.
- Since 9 November 2023: Unfair contract terms are not just void — they are now illegal. Businesses face penalties of up to $50 million, three times the benefit gained, or 30% of adjusted turnover (whichever is greatest) for including or relying on unfair terms.
- Standard form contracts: These protections apply to contracts where you had little or no opportunity to negotiate the terms.
When does it apply?
- You entered a standard form consumer contract or a small business contract (where at least one party employs fewer than 100 people, or the contract value is under $5 million).
- The contract was prepared by one party (the business) and presented on a take-it-or-leave-it basis.
- The allegedly unfair term is not a main subject matter term (like the price you agreed to pay) and is not required by law.
What to Do If an Australian Business Is Enforcing an Unfair Contract Term Against You
- Read contracts carefully before signing and look for one-sided clauses.
- If a business tries to enforce a term you believe is unfair, tell them you consider it unfair under the ACL and refuse to comply.
- Report unfair terms to the ACCC at accc.gov.au — the ACCC can take court action against the business.
- You can also apply to a court or tribunal to have a specific term declared void.
What should you NOT do?
- Don’t assume you’re bound by every term just because you signed the contract — unfair terms can be struck out.
- Don’t ignore unfair terms — if a business enforces one against you, you have the right to challenge it.
- Don’t confuse price terms with unfair terms — the upfront price and main subject are generally not covered.
How Western Australia differs from federal law
Unfair contract terms provisions under the ACL are enforced in WA by Consumer Protection WA and the ACCC.
- A term is unfair if it causes significant imbalance, is not reasonably necessary to protect the benefiting party's legitimate interests, and would cause detriment to the other party.
- Since November 2023, civil penalties apply for including unfair terms — up to $50 million for a body corporate.
- Consumer Protection WA has investigated unfair terms in residential tenancy agreements, fitness contracts, and vehicle rental agreements in WA.
- The Residential Tenancies Act 1987 (WA) provides additional protections for tenants regarding unfair terms, with the Magistrates Court hearing tenancy disputes.
Additional Steps in Western Australia
Raise concerns with the business first. Report suspected unfair terms to Consumer Protection WA (1300 304 054) or the ACCC. Apply to SAT to have a term declared unfair. For tenancy-specific unfair terms, contact Tenancy WA (1800 621 888).
Relevant Law: Australian Consumer Law (Cth), Part 2-3, ss 23-28; Fair Trading Act 2010 (WA); Residential Tenancies Act 1987 (WA)
Common Questions
When does unfair contract terms apply?
You entered a standard form consumer contract or a small business contract (where at least one party employs fewer than 100 people, or the contract value is under $5 million).The contract was prepared by one party (the business) and presented on a take-it-or-leave-it basis.The allegedly unfair term is not a main subject matter term (like the price you agreed to pay) and is not required by law.
What should I do if a business in Australia is trying to enforce a contract term that seems unfair?
Read contracts carefully before signing and look for one-sided clauses.If a business tries to enforce a term you believe is unfair, tell them you consider it unfair under the ACL and refuse to comply.Report unfair terms to the ACCC at accc.gov.au — the ACCC can take court action against the business.You can also apply to a court or tribunal to have a specific term declared void.
What mistakes should I avoid with unfair contract terms?
Don’t assume you’re bound by every term just because you signed the contract — unfair terms can be struck out.Don’t ignore unfair terms — if a business enforces one against you, you have the right to challenge it.Don’t confuse price terms with unfair terms — the upfront price and main subject are generally not covered.
Unfair Contract Terms in other states
Same topic, different jurisdiction. Pick the one that applies to you.