Home topics news Economy News Small Business Economy Small business to inform government on unfair contracts Joe Kelly May 26, 2014 The government is seeking feedback from small businesses on new protections guarding them against “unfair contract terms” imposed by larger players. Small business minister Bruce Billson has warned that smaller operators are often forced to sign up to standard form contracts on a “take-it or leave-it basis”. Mr Billson said that small business owners had little bargaining power and were sometimes forced to enter into disadvantageous contracts for a wide range of transactions. He added they often lacked the resources to “navigate” the contracts or negotiate around their undesirable provisions. However, the government is now considering a new law allowing a court to cancel out the “unfair” terms within that contract if it unreasonably disadvantages a small business. On Friday the government released a discussion paper with state and territory consumer affairs ministers requesting feedback from stakeholders by August 1. Small business owners are now being encouraged to detail their own experiences with unfair contracts. “Sometimes these contracts contain unfair terms that increase the cost of doing business and undermine trust, which is vital to business relationships,” Mr Billson said. “Getting the balance right between protecting small businesses against unfair contract terms, while at the same time not imposing unnecessary burden on business will be an important consideration in this consultation.” The Independent Contractors’ Association has long urged the government to remedy unfair contract terms imposed on smaller business.