Cancellation Policy
A Cancellation Policy explains who may cancel appointments and the terms and conditions under which they can do so.
Last updated January 13, 2025
Suitable for Australia
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Frequently asked questions
Use this Cancellation Policy If:
- Your business would like to avoid and compensate for cancellations or rescheduled appointments.
- You want to create a proactive and simple way to establish mutual respect for both the client’s and your business’ time
Important considerations
- Enforcing a cancellation fee on a client who fails to show due to something beyond their control, is unreasonable. Charging the fee is reasonable when a client cancels ‘last minute’ for the purposes of convenience, price, choice etc.
- The amount charged as a cancellation fee should be reasonable and consistent with costs incurred by the business. Cancellation fees are sometimes taken as non-refundable deposits (amounting to 10% of the services costs).
- If the fee is unreasonable, Australian Consumer Law may regard the policy as an unfair contractual term.
- Your cancellation policy should be displayed clearly on business premises, websites, marketing materials, registrations forms etc. Clients who make bookings over the phone should also be verbally notified.
- If the policy is not communicated when the appointment is booked, and a cancellation fee is later charged, ASIC may consider the fee to be an ‘unauthorised transaction’ under their ePayments code.
- If you have any concerns, you should seek advice from a business lawyer.
What does this Cancellation Policy cover?
- Objectives/Background
- Cancellation conditions
- Cancellation Process
- Late Arrivals
- Applicable Fees
- Acceptable circumstances for waiving cancellation fees
- Refund Policy
- Review options
- Client agreement
Further information:
View Sample Cancellation Policy
The Legal Risk Score of a Cancellation Policy Template is Low
Our legal team have marked this document as low risk considering:
- Users should be aware that cancelling or rescheduling an appointment without providing the required minimum notice could incur cancellation fees, which may lead to unexpected costs.
- The policy imposes a strict requirement for advance notice, limiting flexibility for users who may need to cancel or reschedule due to unforeseen circumstances closer to the appointment date.
- The policy specifies that cancellations must be made either by phone or email, which could be restrictive if these communication channels are inaccessible or if there are technical issues preventing timely notice.
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