Auto-Renewal Clauses in Australia: Unfair Contract Terms, Price Rises and the 2027 Subscription Rules

This guide is based on the Australian Consumer Law (Competition and Consumer Act 2010, Schedule 2), the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 and the ACCC page listed under Sources. Last checked 9 November 2026.

Auto-renewal clauses at a glance

How auto-renewal clauses work

Most auto-renewal clauses have the same four parts. Find each one before you sign:

1. The initial term. For example 12, 24 or 36 months.
2. The renewal term. Some roll over month to month. Others renew for another full term, which can lock you in for years.
3. The notice window. For example “at least 60 days before the end of the term, in writing”. Miss it by a day and the renewal may run.
4. The price on renewal. “Then-current rates”, “list price” or a fixed percentage increase.

Look also for an early termination fee, a requirement to give notice in a particular way (a specific email address, a portal, registered post), and whether the supplier must remind you before renewal. Terms that sit in a separate web page “as updated from time to time” are easy to miss.

Is an automatic renewal clause legal in Australia?

There is no general ban. Whether a particular clause can be relied on depends on its wording and, for standard form contracts with consumers and small businesses, on the unfair contract terms rules.

Under those rules a term is unfair if all three of these are met (ACL s 24(1)):

1. it would cause a significant imbalance in the parties’ rights and obligations;
2. it is not reasonably necessary to protect the legitimate interests of the party it favours; and
3. it would cause detriment, financial or otherwise, if applied or relied on.

The supplier has to prove the term is reasonably necessary; otherwise it is presumed not to be (s 24(4)). A court must also consider transparency: whether the term is in reasonably plain language, legible, presented clearly and readily available (s 24(2)-(3)).

The law lists examples of terms that may be unfair. Several are directly about renewal and what comes with it:

These are examples, not automatic findings. A renewal clause with clear notice, a fair window and a right to leave without a fee is much less likely to be a problem. The ACCC gives a broadband example of the same idea for price rises: a term letting a business raise prices when customers cannot end the contract is likely unfair, while a similar term is likely not unfair if customers who reject a price rise can end the contract without penalty.

Who is protected?

Consumers. A consumer contract is a contract for goods, services or an interest in land with an individual who acquires it “wholly or predominantly for personal, domestic or household use or consumption” (s 23(3)).

Small businesses. A small business contract is one where at least one party employs fewer than 100 people when the contract is made, or had turnover under $10,000,000 in its last income year (s 23(4)). Only one party needs to meet the test, and there is no contract-value limit under the ACL.

Standard form. The rules only apply to standard form contracts. If you allege a contract is standard form, it is presumed to be unless the supplier proves otherwise (s 27(1)). Online sign-up terms and printed supplier terms used with many customers are typical. A contract can still be standard form even if you negotiated minor changes or picked from the supplier’s menu of plans (s 27(3)).

Loans, insurance and other financial products are covered by matching rules in the ASIC Act (ss 12BF-12BM) rather than the ACL.

What if the contract has already renewed?

Start with the contract itself. Check exactly what notice was required, when and how, and whether the supplier had to remind you. Then:

• Check the date rules. The current rules, including penalties, apply to contracts made on or after 9 November 2023. An older contract comes under them from the day it is renewed, for conduct on or after that day (ACL s 305(3)). So an older contract that rolled over after that date is now under the current rules.
• Write to the supplier. Say which term you rely on, or which term you say may be unfair and why, and what you want: to end the contract, a refund, or the old price.
• Know the court options. A void term cannot be enforced against you. A person who suffers loss because of a contravention can apply to a court for orders within 6 years, which can include a refund or varying the contract (ss 237, 243). A small business party can also ask a court to declare a term of a standard form small business contract unfair (s 250(2)).

Many of these disputes are resolved by negotiation. Pointing to the specific s 25 example and the date the contract renewed gives the supplier something concrete to respond to.

New subscription rules from 1 July 2027

The Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 commences on 1 July 2027. It adds subscription contract rules to the ACL. The section numbers below are those in the Act as made.

• What is a subscription contract. It includes a fixed-period contract where supply continues after the end of the period unless someone stops it, and the customer automatically incurs liability to pay, unless it is an excluded contract (new s 48B(1), (3)). That is an auto-renewal.
• Disclosure before you sign. When offering the contract, the supplier must state that it would be a subscription contract and disclose information about the amounts payable, the period, “renewal, extension or other continuation of the contract”, any notice needed to end it and how to end it (new s 48D).
• An easy way out. For contracts with consumers, or standard form contracts with small business subscribers, each way of ending the contract must be easy to find and straightforward, and must require only steps that are reasonably necessary. If you entered the contract online, one way must be online (new s 48F, s 48G).
• Which contracts. The rules apply to contracts entered into on or after commencement, and to older contracts once they are renewed, extended or continued after it (new s 312).

These rules are not law until 1 July 2027. Until then, the unfair contract terms rules are the main protection.

What to do before you sign, and before it renews

1. Find the notice window and diary it, with a reminder well before the deadline.
2. Ask for a shorter renewal term, such as month to month after the first term.
3. Ask for a reminder from the supplier before renewal, with the new price.
4. Ask for an exit right if the price or terms change at renewal, without a fee.
5. Cancel in writing by the method the contract specifies, and keep proof of sending and any reply.

What our review checks

Upload the supplier, software (SaaS), equipment or service terms and get a plain-English report written for the small business customer, usually about 5 minutes after you pay. On renewal it:

• finds the initial term, the renewal term, the notice window and the required notice method, including terms hidden in linked web pages
• checks whether only the supplier controls renewal, the terms or the price at renewal
• flags early termination fees and other charges that apply during a renewed term
• says whether the contract looks like a standard form contract and whether your business may be a small business under the law
• gives you the specific changes to ask for, such as a shorter renewal term, a reminder and a free exit on price changes

The report explains what the terms say and what the law provides. It does not say a term “is void” or “is unlawful”: only a court decides that. It is not legal advice. You decide what to sign.

Get my business terms reviewed – $49

Questions people ask

Are auto-renewal clauses legal in Australia?

Yes, there is no general ban. But in a standard form consumer or small business contract, a renewal term that only the supplier controls is one of the law’s examples of a term that may be unfair (ACL s 25(e)). An unfair term is void.

Can a supplier automatically renew my contract without telling me?

It depends on what the contract says. Many contracts do not require a reminder. A one-sided renewal term in a standard form consumer or small business contract may be unfair. From 1 July 2027, subscription contracts must disclose renewal terms and how to end the contract before you sign.

Can a supplier increase the price when the contract renews?

Only if the contract allows it. A term letting one party vary the upfront price without the other being able to terminate is one of the law’s examples of a term that may be unfair (ACL s 25(f)). Ask for a right to leave without a fee if the price rises.

I missed the cancellation window. Am I stuck?

Not necessarily. Check the exact notice terms first. If the contract is standard form and the renewal term is one-sided or hidden, it may be unfair and void. Write to the supplier saying which term you rely on and what you want.

Do unfair contract terms rules apply to my business subscription?

They apply if the contract is a standard form contract and at least one party employs fewer than 100 people or had turnover under $10 million in its last income year (ACL s 23(4)). If you allege the contract is standard form, it is presumed to be unless the supplier proves otherwise.

Can I get a refund for an automatic renewal?

Possibly, but it is not automatic. A void term cannot be enforced, and a person who suffers loss because of a contravention can apply to a court for orders, which can include a refund (ACL ss 237, 243). Most businesses start by asking the supplier in writing.

Does my contract from before November 2023 have the new protections?

From the day it renews. The current rules, including penalties, apply to an older contract as renewed on or after 9 November 2023, for conduct from the renewal day (ACL s 305(3)). An auto-renewal after that date brings it under the current rules.

What are the new subscription rules in 2027?

From 1 July 2027, suppliers must disclose renewal terms, notice periods and how to end a subscription before you sign, and give an exit method that is easy to find and straightforward, and online if you signed up online. They cover consumers and small businesses on standard form contracts. They are not law yet.

Is an early termination fee on a renewed contract allowed?

It can be, but it can be challenged. Fees that depend on an event, like leaving early, are not part of the protected upfront price (ACL s 26(2)). A fee charged only to you for ending the contract is one of the law’s examples of a term that may be unfair (s 25(c)).

How do I cancel an auto-renewing contract?

Give notice in writing by the method the contract specifies, before the deadline, and keep proof of sending. If the contract does not say how, use a method you can prove, such as email to the supplier’s nominated address.

Is the business terms review legal advice?

No. It is a plain-English report that explains what the terms say, which ones may be unfair under the law and what to ask the supplier to change. Claim Done is not a law firm.

Related guides

• Unfair contract terms for small business: the rules since 9 November 2023
• SaaS agreement review: subscription terms, SLAs and data
• Supplier and SaaS terms: unfair contract terms for small business
• Limitation of liability clauses explained

Claim Done is not a law firm and does not give legal advice; this page is general information about Australian law as at 9 November 2026. Whether a term is unfair is for a court or tribunal to decide.

Sources (checked 9 November 2026)

• Competition and Consumer Act 2010 (Cth), Schedule 2 (Australian Consumer Law), Compilation No. 167 (ss 23-28, 224, 237, 243, 250, 305, 310)
• Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 (Cth), as made (s 2; Sch 1: new ss 48B, 48D, 48F, 48G, 312)
• Australian Securities and Investments Commission Act 2001 (Cth) (ss 12BF-12BM)
• ACCC: contracts