Learn about the proposed increases in infringement notice penalties for franchisors under the Treasury Laws Amendment Bill 2024. Stay informed on how these changes, effective April 2025, impact compliance with the Franchising Code of Conduct and the ACCC’s enforcement powers.
On 25 September 2024 the government released an exposure draft of the Treasury Laws Amendment (Fairer for Families and Farmers) Bill 2024: Industry Codes (Penalties and Other Amendments) which increases the infringement notice penalty units under the Competition and Consumer Act 2010 (Cth).
The Australian Competition and Consumer Commission (ACCC) is empowered to issue infringement notices to franchisors if the ACCC has reasonable grounds to believe that the franchisor has contravened a civil penalty provision of the Franchising Code of Conduct (Code).
Franchisors must pay the infringement notice penalty amount if they wish to avoid the ACCC taking further action against the alleged contravention.
The infringement notice penalty units are as follows:
| Current penalty units | Proposed penalty units | |
| For a body corporate | 50 units ($16,500) | 60 units ($19,800) |
| For an individual | 10 units ($3,300) | 12 units ($3,960) |
These proposed changes reflect Dr Schaper’s recommendation under his review of the Code.
The changes are due to commence on 1 April 2025, which is the sunset date of the Code.
Franchisors beware
These changes serve as a reminder that contravening the Code can result in civil penalties. This is particularly compelling given that the exposure draft of the Code has designated many of the current substantive provisions of the Code as civil penalty provisions. This means more of the provisions of the Code will become penalty provisions and attract infringement notices and fines and possible penalties for non-compliance.
If you are a franchisor that requires assistance with complying with the Code, please contact our expert Franchise Lawyers. Contact us today:
Raynia Theodore: raynia.theodore@mst.com.au
Louise Wolf: louise.wolf@mst.com.au
Esther Gutnick: esther.gutnick@mst.com.au
Article by Carmen Wu
