A Major Shake-Up for Consumer Protection
The federal government is making its biggest changes to the Australian Consumer Law (ACL) in over a decade. On 9 February 2026, Treasury released draft legislation — the Unfair Trading Practices Bill 2026 — that would ban a range of dodgy business practices across every industry, including building and trades.
The bill targets businesses that manipulate or pressure consumers into decisions they wouldn’t otherwise make. For tradies and builders, that means closer scrutiny of how you quote, advertise, and structure contracts. For homeowners, it means stronger protections when hiring and paying for trade work.
What the Bill Covers
The draft legislation focuses on three main areas.
1. A General Ban on Unfair Trading Practices
The bill introduces a broad prohibition on conduct that distorts or manipulates consumer decision-making. This is deliberately wide — it’s designed to catch unfair tactics that don’t fit neatly into existing categories like misleading conduct or unconscionable behaviour.
Think of it as a catch-all rule: if a business practice pressures, tricks, or takes advantage of a consumer in a way that’s unfair, it could breach the new law.
2. Unfair Subscription Practices
Businesses that use ongoing subscriptions or recurring payment models will need to:
- Make cancellation processes simple and straightforward
- Provide timely renewal notices before auto-renewing contracts
- Stop making it deliberately hard for customers to opt out
While this targets subscription services more directly, any tradie or builder using ongoing maintenance contracts or retainer arrangements should pay attention.
3. Drip Pricing
Drip pricing — where the advertised price creeps up as extra fees and charges are added during the buying process — will be specifically addressed. If you quote one price upfront, the final price can’t balloon with hidden extras at the end.
Penalties
The bill does not muck around when it comes to enforcement. Civil penalties will be:
- Up to $50,000,000 for companies
- Up to $2,500,000 for individuals
These penalty amounts are in line with existing penalties for unfair contract terms and unconscionable conduct under the ACL. They’re designed to make non-compliance genuinely painful for large and small operators alike.
How This Affects Tradies and Builders
If you run a trade business, here’s what to watch for:
- Quoting: Your quotes need to be upfront and transparent. If you regularly add charges that weren’t in the original quote — call-out fees, materials surcharges, travel costs — you’ll need to include them from the start or clearly disclose them before the customer commits.
- Contract terms: Locking customers into contracts that are hard to get out of, or burying unfavourable terms in fine print, could fall foul of the new rules.
- Marketing and advertising: Any advertising that creates a false sense of urgency (fake “limited time” offers) or uses pressure tactics to push homeowners into signing could be caught by the general prohibition.
The practical takeaway: quote honestly, keep your contracts clear, and don’t use high-pressure sales tactics. Most good tradies already do this — the bill is aimed at the ones who don’t.
How This Protects Homeowners
For homeowners hiring tradies, the bill adds a layer of protection on top of existing consumer guarantees. You’ll benefit from:
- Clearer pricing — what you’re quoted should be closer to what you actually pay.
- Easier cancellations — if you’re locked into a maintenance or service agreement, getting out of it should be straightforward.
- Less pressure — businesses won’t be able to use manipulative tactics to rush you into signing a contract.
These changes complement the existing protections under the ACL, which already require tradies to deliver work with due care and skill. For more on your rights when hiring trade professionals, see our guides for homeowners.
Timeline
Here are the key dates:
- 9 February 2026 — Treasury released the draft legislation for public consultation.
- 23 February 2026 — Public consultation period closed.
- 1 July 2027 — Expected commencement date if the bill passes Parliament.
The bill still needs to go through the full parliamentary process, so changes to the final legislation are possible. But the direction is clear: the government is tightening consumer protections, and businesses across the trades sector should start preparing now.
What You Can Do Today
Whether you’re a tradie or a homeowner, the best protection is working with properly licensed professionals. Licensed tradies are already held to conduct and quality standards by their state or territory regulator.
You can check any tradesperson’s licence on TradieVerify before work begins. It takes 30 seconds and could save you thousands.
Sources
- Ashurst — Play Fair: Unfair Trading Practices Ban Coming in 2026
- Baker McKenzie — Australia: Proposed ACL Unfair Trading Reforms
- McCullough Robertson — Competition and Consumer Law: Unfair Trading Practices Bill
- Allens — Unfair Trading Practices: Treasury Unveils Blueprint for New Regime