Starts 1 July 2027/C2026A00064/Read from the authorised Act/Not legal advice; does not certify
Competition and Consumer CheckerThe Act, section by section
Section 48CScope or machinery

Contracts left out of the subscription rules

Seven kinds of contract are excluded: a lease, a licence over real property, hire-purchase, payment by instalments, childcare, tuition supplied by a pre-school or school, and a kind prescribed by regulation. An excluded contract is outside the subscription rules even if it meets a gateway.

Competition and Consumer Amendment (Unfair Trading Practices) Act 2026, Schedule 1, Part 3, item 20, section 48CStarts 1 July 2027Part 3: subscription contracts
The requirement

Check the exclusion list before applying the subscription duties. The list is specific, and a regulation can add to it.

Who it binds. Suppliers whose products sit near one of the listed categories, and the teams that classify them.

Operative term. excluded subscription contract

Left to regulations. The list in this section can be added to by regulation. Check the regulations before treating the list as closed.

What this means in practice

The exclusions are not a general "essential services" carve-out. They name particular contract types, and the regulation power can add more. A lease of goods is excluded; a service subscription is not. A property licence is excluded; a software licence is not. Payment by instalments is excluded, which matters for a product that splits a fixed price into scheduled payments rather than supplying continuously. Childcare and school tuition are excluded. If a product is designed to look like an instalment plan, document the analysis rather than assuming the label is enough. The regulation power means the list can change, so the watch should cover it.

How to test it

Take each contract that met a gateway and test it against the seven categories. Record the category, the clause in the contract that brings it within the category, and the reviewer. If no category applies, the contract stays in scope. If a category is claimed, keep the evidence with the contract, because the supplier may have to show why the exclusion applies. Review the classification when the regulations prescribe a new kind of contract.

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.

  • Exclusion analysisA row per contract claimed to be excluded, with the category and the supporting clause.
  • Contract sampleThe signed template that shows the lease, licence, hire-purchase or instalment structure.
  • Regulation watchThe log of prescribed kinds of contract and the date the list was last checked.
  • Legal opinionThe advice relied on for a borderline classification.
  • Review dateThe next date the exclusion analysis will be re-run.

What to do first

  1. Put every contract claimed to be excluded through the seven-category test.
  2. Keep the supporting clause with the exclusion decision.
  3. Watch the regulations for a new prescribed kind of contract.

Questions

Is a software licence excluded as a licence?
The exclusion is a property licence. A software licence is not that, so it is not excluded by paragraph (b) on its face.
Can the list change?
Yes. Paragraph (1)(g) allows a kind of contract to be prescribed, and the regulation power can limit a prescribed kind to specified circumstances.

Related sections

s 48B: Subscription tests 48G: Who is covereds 48D(2): Offer disclosure