A Courier Services Agreement is a legally binding commercial contract that governs the ongoing relationship between a courier or delivery service provider and its client in Australia. It sets out the precise terms on which goods are collected, transported, and delivered, including the geographic service area, standard delivery timeframes, fee structure, liability for loss or damage to parcels, insurance obligations, and how the arrangement can be terminated.

In Australia, the courier and freight industry operates under a complex web of federal and state laws. The Heavy Vehicle National Law (HVNL) imposes chain of responsibility obligations on all parties in the delivery supply chain — from the business engaging the courier to the driver behind the wheel. The Australian Dangerous Goods Code (ADG Code) regulates the classification, packaging, and declaration of dangerous goods including flammable liquids, lithium batteries, and chemicals. The Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010 (Cth)) governs consumer guarantees for services, including the guarantee that services will be rendered with due care and skill.

Without a written agreement, disputes over lost parcels, late deliveries, and unpaid invoices can quickly escalate. A well-drafted Courier Services Agreement protects both the courier and the client by clearly allocating risk, establishing payment obligations, and setting out the process for resolving complaints and claims. Our template complies with Australian legal requirements and is suitable for same-day metropolitan delivery services, interstate freight operators, last-mile delivery contractors, and businesses contracting with delivery platforms.

A Courier Services Agreement is needed whenever a business engages a courier or delivery service provider on an ongoing or recurring basis. It is essential for: retail businesses contracting with last-mile delivery providers; e-commerce operators engaging fulfilment and delivery contractors; wholesalers and manufacturers arranging regular freight pickups; medical and pharmaceutical businesses transporting temperature-sensitive goods; and any business arranging the transport of dangerous goods by road.

The agreement is also important for the courier operator itself. Operating without a written contract leaves the courier exposed to claims for delayed deliveries where the client expected a guaranteed timeframe, liability for goods that were inadequately packaged by the client, and disputes over invoice amounts and payment terms.

In practice, many small courier businesses operate on a handshake or informal email arrangement. This approach fails when a consignment is lost, a client refuses to pay a fuel levy surcharge, or a delivery driver is involved in an accident and questions arise about chain of responsibility compliance. A Courier Services Agreement ensures that both parties understand their obligations from day one.

This agreement is suitable for ongoing service arrangements. For a one-off delivery engagement, a simpler consignment note may suffice. For courier operators who use independent subcontractors rather than employees, a separate subcontractor agreement should also be in place alongside this client-facing document.

A well-drafted Australian Courier Services Agreement should contain the following key elements.

Service description and geographic area: The agreement should precisely describe the type of delivery services provided — same-day, next-day, interstate freight, specialised transport — and the geographic area or regions covered. Ambiguity about service scope leads to the most common category of courier disputes.

Delivery timeframes: The contract should state whether delivery timeframes are estimates or guarantees. Under Australian law, time is not of the essence in a contract unless expressly stated. If a client requires guaranteed delivery windows, this must be explicitly agreed and reflected in the pricing.

Fee structure and GST: The agreement must specify whether fees are calculated per delivery, on a monthly retainer, at an hourly rate, or on a volume basis. All fees must state whether they are inclusive or exclusive of GST at 10%, as required by the A New Tax System (Goods and Services Tax) Act 1999 (Cth). Additional charges for fuel levies, re-delivery attempts, and oversized parcels should be addressed.

Liability cap per parcel: The agreement should specify the courier's maximum liability for loss or damage to any single parcel. This cap must not exclude consumer guarantee rights under the Australian Consumer Law for consumer transactions.

Dangerous goods: If the client may tender dangerous goods for delivery, the agreement must address compliance with the ADG Code, the client's declaration obligations, and the consequences of undeclared dangerous goods.

Chain of responsibility: The agreement must acknowledge the parties' respective obligations under the HVNL or equivalent state legislation, and confirm that neither party will impose time pressures or commercial demands that could cause a driver to breach road transport laws.

Insurance: The agreement should require the courier to maintain goods-in-transit insurance and public liability insurance at specified minimum levels, with evidence of cover available on request.

Claims procedure: A clear timeframe for notifying claims for loss or damage — typically 7 days from scheduled delivery or actual delivery — prevents stale claims and reduces disputes.