Australia MLM: Compliance & Software Guide

September 1, 2025 • Australia MLM

Why Australia-ready compliance matters

Launching or scaling an MLM business in Australia requires more than great products. You must respect local laws (e.g., pyramid scheme prohibitions, advertising standards, privacy and spam rules, taxes) and back it with the right software controls (KYC/KYB, GST invoices, audit trails).

Looking for ready-to-use Australian settings (GST invoices, KYC/KYB, audit logs)? Explore Fenizo MLM Software.

Legal Framework at a Glance

• Australian Consumer Law (ACL): Prohibits pyramid schemes, misleading or deceptive conduct, and unfair practices.
• ACCC oversight: Marketing conduct, product claims, refunds, representations.
• ASIC (financial products): If your plan touches financial products, additional licensing & disclosure may apply.
• TGA (therapeutic goods): Health products/claims must follow TGA rules; some goods require ARTG listing or registration.
• Privacy Act & APPs: Handle personal data under the Australian Privacy Principles (consent, purpose, access, security).
• Spam Act 2003: Consent, identification and unsubscribe requirements for email/SMS.
• Fair Trading (states/territories): Local obligations may also apply.

Pyramid Scheme vs. Lawful MLM

Under the ACL, a pyramid scheme is illegal. Lawful MLM focuses on genuine consumer sales and value delivery. Key differences:

• Legitimate MLM: Rewards primarily from product/service sales to customers; clear refund policies; realistic earnings.
• Illegal pyramid: Rewards mainly for recruiting; little/no focus on real customer demand.

Your plan design (commissions, qualifiers, caps) should prioritise retail sales. Fenizo lets you configure PV on SKUs, enforce retail ratios, and cap payouts. See how.

Advertising & Income/Health Claims

• No misleading conduct: Avoid exaggerated “get rich quick” or unsubstantiated health claims.
• Income disclosures: Use disclaimers and, where possible, publish average earnings ranges.
• Therapeutic claims: If making health claims, ensure TGA compliance and evidence.
• Testimonials: Keep proof; disclose if incentivised.

Privacy (APPs) & Spam Act 2003

• Consent & Purpose: Collect/store personal data for defined purposes only.
• Access & Security: Provide access on request; secure data (encryption, role-based access).
• Marketing Consent: For email/SMS, obtain express consent or ensure it meets inferred consent rules.
• Identify & Unsubscribe: Messages must identify sender and include a working, easy opt-out.

Tax, GST & Payouts

• GST registration: If turnover exceeds the threshold, register and issue tax invoices (ABN, GST amounts, etc.).
• Commission payouts: Track wallet ledgers, apply withholding/fees, export summaries for BAS/accounting.
• Distributor status: Distributors may operate as sole traders/companies; consider ABN collection and GST handling per distributor.

Contracts, Cooling-off & Refunds

• Transparent terms: Compensation plan, return policy, code of conduct, data handling.
• Cooling-off: Provide reasonable cooling-off for business kits/subscriptions where applicable.
• Refunds & warranties: Honour ACL consumer guarantees; outline RMA flow in your software.

Software Features for AU Compliance

• KYC/KYB: Verify identity, ABN capture, business document upload, risk scoring.
• GST-Ready Invoices: Tax-inclusive pricing, GST line items, compliant invoice PDFs.
• Audit-Ready Wallets: Immutable ledger entries, payout approvals, bank export, invoice matching.
• Policy Controls: Caps, qualifiers, retail sales ratio, anti-abuse checks (IP, device, duplicates).
• Privacy & Consent: Consent logs, DSR (access/delete), breach response workflow.
• Comms Compliance: Double opt-in, per-channel consent, automatic unsubscribe & suppression lists.
• Reporting: Rank progress, earnings summaries, GST reports, BAS-friendly exports.

Fenizo ships with AU invoice templates, consent logs, PV-based payouts and exportable ledgers for audits. Get a live demo.

Operations Checklist (Australia)

• ✅ Clearly separate customer sales from recruitment incentives.
• ✅ Maintain refunds/RMA and cooling-off processes.
• ✅ Enable KYC/KYB, ABN capture, and GST invoicing.
• ✅ Use earnings disclaimers and keep proof for claims/testimonials.
• ✅ Implement double opt-in and one-click unsubscribe for email/SMS.
• ✅ Run fraud checks (device/IP, duplicate accounts, unusual patterns).
• ✅ Keep immutable wallet logs and exportable reports (BAS/accounting).

Need help configuring these controls end-to-end? Fenizo MLM Software is built for compliant growth in Australia.

FAQs

Q1. Is MLM legal in Australia?
Yes—provided it is not a pyramid scheme and complies with consumer, advertising, privacy and spam laws. Focus on retail sales and truthful marketing.

Q2. Do I need to register for GST?
If your turnover exceeds the threshold, register for GST and issue compliant tax invoices.

Q3. Can I make income or health claims?
Only if they are substantiated and compliant (e.g., TGA rules for therapeutic claims). Use disclaimers and documentation.

Disclaimer: This guide is for general information only and is not legal or tax advice. Consult qualified professionals for your specific circumstances.