On 9 July 2020, the Treasury Laws Amendment (Acquisition as Consumer—Financial Thresholds) Regulations 2020 were approved, meaning that from 1 July 2021 the current consumer price threshold of $40,000 under the Australian Consumer Law (ACL) will be increased to $100,000.
The result of this change is that many businesses whose goods and services were previously outside the scope of the ACL because they were priced over $40,000 (and not ordinarily acquired for personal, domestic or household use) are likely to be brought within the scope of what the ACL deems to be “consumer” goods and services. This may mean that, among other things, the goods and services of such businesses will be bound by the implied guarantees under the ACL, potentially resulting in an increase in warranty and defect claims.
Businesses who are likely to be impacted should begin to prepare early by reviewing their warranty documents and their standard terms of trade for compliance as well as ensuring that their staff and sales teams are aware of the organisation’s ACL obligations.
If your business requires guidance on its obligations under the ACL, contact a member of our team for practical commercial guidance.