Policy Update - November #2

New consultation: Sustainable Finance Strategy

The Government has released a consultation paper on its Sustainable Finance Strategy. The paper outlines immediate investments and reforms that the Government has identified as most important for supporting sustainable finance in Australia and reducing barriers to investment, with an initial focus on climate-related issues.

The paper is structured across three key pillars:

• Pillar 1: Improve transparency on climate and sustainability

• Pillar 2: Financial system capabilities

• Pillar 3: Government leadership and engagement

Continuous Disclosure - Review of liabilities for failure to meet obligations

Treasury is seeking feedback to inform a statutory review of amendments previously made to the Continuous Disclosure Regime. These amendments introduced a requirement for plaintiffs to prove that companies and related officers acted with 'knowledge, recklessness or negligence' to be successful in a civil penalty for breaches of continuous disclosure laws. 

Unfair contract terms banned

The prohibition on unfair contract terms has now taken effect and civil penalties can be enforced against businesses that include unfair terms in standard form contracts.

The protections also will now cover more small business contracts, with the eligibility threshold lifted from 'less than 20 employees' to 'less than 100 employees', or an annual turnover of less than $10 million. 

The unfair contract terms regime applies to:

• standard form contracts; 

• for the supply of goods or services (or financial products or services under the ASIC Act), or for the sale or grant of an interest in land;

• where the contract is a consumer contract or small business contract; and

• in relation to financial products and services contracts, with an upfront price payable of less than $5 million.