Terms And Conditions In Australia: What To Include

Clear, well-drafted terms and conditions are one of the easiest ways to protect your small business. They set the ground rules with your customers, reduce disputes, and help you get paid on time.

Whether you sell online, provide professional services, run a trades business, or operate a platform, having the right “T&Cs” in place can make everyday operations smoother and legally safer.

In this guide, we’ll explain what terms and conditions are, the different types your business might need, what to include, how Australian Consumer Law (ACL) affects your T&Cs, and practical steps to implement them properly.

What Are Terms And Conditions (And Why Your Business Needs Them)?

Terms and conditions (often called T&Cs) are the rules of engagement between your business and your customers or users. They set out what you’re providing, what you expect in return, and what happens if things go wrong.

Good T&Cs do three key things:

• Manage risk by allocating responsibilities and limiting liability in a way permitted by law.
• Set commercial expectations around price, scope, timelines, delivery, and payment terms.
• Create clear processes for changes, cancellations, refunds, and dispute resolution.

Without written terms, you rely on emails, verbal agreements, or assumptions. That makes disputes more likely and harder to resolve. Clear T&Cs help avoid ambiguity and keep everyone on the same page from day one.

Which Type Of Terms And Conditions Do You Need?

The right T&Cs depend on what you sell and how you sell it. Many businesses use more than one set of terms to cover different parts of their operations (for example, sales terms plus website rules). Consider the following common types.

1) Terms For Selling Goods Or Services (B2C or B2B)

If you sell to consumers or other businesses, you’ll usually want a customer-facing contract that covers price, delivery, risk, warranties, and payment. Many companies use formal Terms of Trade for ongoing supply, or a tailored Customer Contract for project-based services.

2) Website Or App Terms

If you operate a site or app, you’ll need rules for how users access and use it. These typically appear as Website Terms and Conditions or Terms of Use. They set out acceptable use, IP ownership, prohibited conduct, and limitations of liability for the digital environment.

3) E‑Commerce Checkout Terms

When you sell online, the purchase flow should incorporate e‑commerce sales terms that address delivery, returns, refunds, and product-specific risks. A tailored set of E‑Commerce Terms and Conditions ensures your checkout process forms a binding contract with compliant consumer guarantees and clear policies.

4) Platform Or Marketplace Terms

Platforms that connect buyers and sellers, or hosts and guests, need multi‑sided terms that allocate risk between all participants. Consider separate user, seller, and operator terms, or a unified framework like Platform Terms and Conditions supported by policies (privacy, content, dispute processes).

5) Policies That Support Your T&Cs

Your T&Cs often reference other policies. Most online businesses will also need a Privacy Policy to explain how personal information is collected and used, and a returns or warranty statement (for example, a Warranties Against Defects Policy) to align with the ACL. These work together to create a complete, transparent customer experience.

What Should Your Terms And Conditions Cover?

No two businesses are identical, but most small business T&Cs cover similar building blocks. The details depend on your industry and risk profile.

Core Commercial Terms

• Scope of supply: Clearly describe the goods or services you’ll provide, including inclusions, exclusions, milestones, and assumptions.
• Price and payment: State fees, taxes, deposits, due dates, and accepted payment methods. If you use surcharges or late fees, explain when they apply and ensure they’re reasonable and permitted.
• Delivery or performance: Outline lead times, shipping methods, performance standards, site access requirements, or client obligations to enable delivery.
• Variations: Set out how changes to scope or price are approved and documented.
• Term and termination: Specify contract duration, renewal, and how either party can end the agreement (including for non‑payment or breach).

Consumer Law And Warranty Clauses

• Consumer guarantees: Acknowledge that consumer rights under the ACL can’t be excluded, and tailor your warranty language around those guarantees.
• Faults and remedies: Explain how customers can notify faults, return processes, and available remedies (repair, replacement, refund) consistent with the ACL.
• Warranties against defects: If you offer your own warranty, include the mandatory wording, contact details, and steps for making a claim.

Risk And Liability

• Limitation of liability: Limit your exposure to what’s permitted by law (for example, re‑supply of services) and exclude indirect losses where appropriate.
• Indemnities: Include targeted indemnities for key risks (IP infringement, third‑party claims, property damage), ensuring they’re proportionate and reasonable.
• Insurance: If relevant, require counterparties to hold specific cover types and minimum limits, and maintain your own insurance in parallel.

IP, Confidentiality And Data

• Intellectual property: State who owns pre‑existing and newly created IP, and the licence granted to the customer or user.
• Confidentiality: Protect non‑public information shared during the engagement.
• Privacy and data: Reference your Privacy Policy and outline data handling, security measures, and any data processing terms if you handle personal information on behalf of clients.

Operational And Process Clauses

• Acceptable use: For websites, apps and platforms, define prohibited conduct, content rules, and account suspension or termination rights.
• Delivery and risk transfer: Clarify when title and risk pass to the buyer, especially for physical goods.
• Events outside your control: Include a force majeure clause to deal with unforeseen events.
• Dispute resolution: Add a tiered process (negotiation, mediation, then courts) to encourage early resolution.
• Governing law: Nominate the Australian state or territory law that applies.

Do Your Terms Need To Comply With Australian Consumer Law?

Yes. If you sell to consumers (or to small businesses in some contexts), your T&Cs must align with the Australian Consumer Law. The ACL sits within the Competition and Consumer Act 2010 and includes rules on consumer guarantees, unfair contract terms, and misleading conduct.

Consumer Guarantees

Consumers are entitled to goods that are of acceptable quality, fit for purpose, match descriptions, and services that are delivered with due care and within a reasonable time. Your T&Cs can’t exclude these guarantees, but they can explain how you’ll handle remedies in a compliant way.

Unfair Contract Terms

Standard form contracts with consumers and many small businesses can’t include terms that cause a significant imbalance, are not reasonably necessary to protect your legitimate interests, and would cause detriment if relied on. It’s wise to review your template using a UCT Review and Redraft to identify and fix risky clauses.

Misleading Or Deceptive Conduct

Your advertising, pricing displays, and claims must be accurate and not misleading. Pricing clauses should match how you present prices on your website or quotes. Clauses relating to product descriptions and performance should be supported by facts. If your business is grappling with ACL questions, an ACL Consultation Package can help you align your documents and processes.

Warranties Against Defects

If you provide your own warranty, your written statement must include mandatory text and contact details. A tailored Warranties Against Defects Policy ensures your promises to customers are compliant and clear.

How To Create And Implement Your Terms And Conditions

Drafting the right T&Cs isn’t just a legal exercise; it’s about building a smooth customer experience and protecting cash flow. Here’s a practical way to approach it.

1) Map Your Sales And Delivery Process

Start by mapping how a sale actually happens in your business, from enquiry to payment to delivery and after‑sales support. Identify points where customers have questions or disputes arise. Your T&Cs should answer those questions in plain English and set fair, firm boundaries.

2) Choose The Right Format And Entry Points

• Proposals and invoices: For services, attach your terms to quotes or proposals and ensure acceptance is captured.
• Online checkout: Use a checkbox that requires customers to accept your E‑Commerce Terms and Conditions before purchase.
• Website/app onboarding: Require users to accept your Website Terms and Conditions (or Terms of Use) when creating an account.
• Ongoing supply: For repeat B2B orders, implement master Terms of Trade with order forms or purchase orders referencing those terms.

3) Tailor Clauses To Your Risk And Industry

Generic templates can miss critical risks or include clauses that don’t fit your process (and may be unfair under the ACL). Tailor liability caps to your fee levels, align timeframes with your supply chain, and reflect real‑world lead times and dependencies. If you operate a platform, ensure your Platform Terms and Conditions properly allocate risk across all user groups.

4) Make Policies Easy To Find And Consistent

Keep your refund, warranty, and privacy statements consistent across your T&Cs, website FAQs, and customer communications. Link to your Privacy Policy wherever you collect personal information, and make sure your internal processes match what your documents promise.

5) Train Your Team And Embed The Process

Great documents only work if your team uses them. Train staff to send the right terms with quotes, collect acceptance correctly, and follow the variation and invoicing processes set out in your T&Cs. Consistent use reduces disputes and strengthens your position if something goes wrong.

6) Review Regularly As You Grow

As your pricing, products, or delivery models evolve, update your T&Cs. Also keep an eye on legal changes (for example, updates to unfair contract term laws). Set a reminder to review your documents at least annually or after any major change to your business model.

Key Takeaways

• Terms and conditions are your everyday risk tool: they set expectations, reduce disputes, and help you get paid on time.
• Most businesses need more than one set of terms, such as sales terms, website rules, and supporting policies like a Privacy Policy.
• Your clauses must align with the Australian Consumer Law, including consumer guarantees, unfair contract terms, and rules against misleading conduct.
• Cover the essentials: scope, pricing and payment, delivery, variations, warranties, liability limits, IP, confidentiality, privacy, and dispute resolution.
• Implement your T&Cs where customers actually engage (quotes, checkout, onboarding), train your team, and review regularly as you grow.
• Tailored documents such as Terms of Trade, Website Terms and Conditions, and an ACL‑compliant warranty statement can save time, money, and stress.

If you’d like a consultation on drafting or updating your terms and conditions, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.