Commonwealth Numbered Regulations - Explanatory Statements

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TRADE PRACTICES AMENDMENT REGULATIONS 2000 (NO. 2) 2000 NO. 164

STATUTORY RULES NO. 164

Issued by the authority of the Minister for Financial Services & Regulation

Trade Practices Act 1974

Trade Practices Amendment Regulations 2000 (No. 2)

The Trade Practices Act 1974 (the Act) provides protection against unfair practices for consumers and business, and provides a remedy where there has been a contravention of the Act.

Section 172 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Section 5 1 AC prohibits a corporation from engaging in unconscionable conduct. Subsections (9) and (10) provide that the section does not apply to the supply or acquisition, or possible supply or acquisition, of goods or services at a price in excess of $ 1,000,000, or such higher amount as prescribed.

The purpose of the proposed Regulations is to amend the Act to expand the range of transactions to which section 5 1 AC will apply.

The proposed Regulations will prescribe an increase in the transactional limit governing when section 5 1 AC will apply so that section 5 1 AC will apply to the supply or acquisition, or possible supply or acquisition, of goods or services at a price of $3,000,000 or less.

The amended limit was recommended by the Joint Select Committee on the Retailing Sector (the Baird Report). The Committee considered that a limit of $1 million hindered access by small business to the unconscionable conduct provisions of the Act. The proposed Regulations will have the effect of providing small business with greater protection in relation to the introduction of the New Tax System.

Details of the Regulations are set out in the Attachment.

The Regulations commence on 1 July 2000.

ATTACHMENT

Trade Practices Amendment Regulations 2000 (No. 2)

Regulation 1 - Name

This regulation provides that the amending regulations are the Trade Practices Amendment Regulations 2000 (No.2).

Regulation 2 - Commencement

This regulation provides that the regulations commence on 1 July 2000.

Regulation 3 - Schedule

This regulation provides that Schedule 1 amends the Trade Practices Regulations 1974 as specified.

SCHEDULE 1 AMENDMENTS

Item 1

Item 1 inserts a new regulation 28AA that prescribes the amount of $3,000,000 for subsections 5 1AC(9) and (10) of the Trade Practices Act 1974. The effect of the regulation will be to extend the application of section 5 1 AC to the supply or acquisition, or possible supply or acquisition, of goods or services to the value of $3,000,000.