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 48GScope or machinery

Consumer and small business cover

The consumer requirement is met when a person buys the goods or services mainly for personal, home or household use. The small business requirement is met by a standard form contract where the subscriber employs fewer than 100 people or has turnover below $10 million for its last income year.

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

Decide which requirement the subscriber meets, because sections 48E and 48F depend on it. Count casual employees only if they are engaged regularly and systematically, and count part-time staff as a fraction of full-time equivalent.

Who it binds. The supplier classifying its subscriber base, and the teams that hold headcount and turnover data.

Operative term. fewer than 100 persons

What this means in practice

The small business test has two alternative limbs, and either one is enough. Headcount is measured at the time the contract is made, with casuals excluded unless they are regular and systematic, and part-time staff counted as a fraction. Turnover is measured for the last income year that ended at or before the contract, using the GST-based definition in subsection (4). A subscriber can meet the test on headcount even with high turnover, or on turnover even with more than 100 staff. The contract must also be a standard form contract. Keep the data and the date, because the classification decides whether the exit and information duties apply.

How to test it

At onboarding and at each renewal, capture the subscriber type, the headcount, the turnover and the income year. Apply the headcount limb first: fewer than 100 persons, with casuals counted only if regular and systematic and part-time staff as a fraction. Then apply the turnover limb: less than $10 million for the last income year. If either is met and the contract is standard form, the small business requirement is met. Record the source of the data. Do not use a generic "SME" flag without the numbers behind it.

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.

  • Subscriber classificationThe type, headcount, turnover and income year captured for each business subscriber.
  • Headcount workingThe casual and part-time treatment, with the calculation.
  • Turnover workingThe GST-based turnover calculation and the income year used.
  • Standard form checkThe section 48H analysis for the contract.
  • Renewal updateThe refreshed classification at renewal, with the date.

What to do first

  1. Capture the numbers, not a label, for every business subscriber.
  2. Calculate headcount and turnover at the contract date and keep the working.
  3. Refresh the classification at renewal and when the contract is varied.

Questions

Is it headcount or turnover?
Either. Section 48G(2)(b) says the subscriber satisfies either or both conditions, so meeting one is enough.
How are casuals counted?
A casual employee is not counted unless the engagement is regular and systematic. A part-time employee, including a casual who qualifies under that rule, is counted as a proportionate share of a full-time role.

Related sections

s 48B: Subscription tests 48H: Standard forms 48F(1): Exit method