Date the contract and each renewal, extension, continuation or variation. The rules reach an earlier contract when one of those events happens after the start date.
Who it binds. Suppliers with subscription contracts that began before 1 July 2027, and the teams that manage renewals and variations.
Operative term. renewed, extended or otherwise continued
What this means in practice
The application rule is event based. A contract signed before the start date is outside the subscription provisions until it is renewed, extended or otherwise continued, or varied. When that happens, the provisions reach the contract in its renewed, extended, continued or varied form, from the day the event takes effect. A variation that happens first takes the contract in on the variation date, and a later renewal does not undo that. The practical work is to identify every pre-start contract, the next event, and the date. An auto-renewal is the most common event, so the renewal calendar is the working list.
How to test it
Split the subscription book into contracts entered before and on or after 1 July 2027. For each pre-start contract, find the next renewal, extension, continuation or variation. If the event is after the start date, apply sections 48B, 48E and 48F from the event date. If a variation happens before a renewal, use the variation date. Record the event and the date in the contract record, and do not apply the rules to the pre-event period.
Evidence to keep
The Act does not prescribe these records. They are the artefacts our reading says a regulator or auditor may ask for; keep the ones that fit your business and the provision.
- Contract book splitPre-start and post-start contracts, with the entry date for each.
- Event calendarThe next renewal, extension, continuation or variation for each pre-start contract.
- Variation registerThe date and nature of each variation, with the new terms.
- Notice recordThe notice given to the subscriber about the change.
- Application noteThe rule applied to each contract, with the event date and the provision.
What to do first
- Split the book by contract date and identify the next event for every pre-start contract.
- Put the event date in the contract record, not only the renewal date.
- Apply the rules from the event date, not from the original signature.