SMS Marketing in Australia: A Spam Act Compliance Guide

SMS is a high-performing channel for Australian businesses. Cafés announce specials, gyms fill classes, tradies send appointment reminders and online stores announce sales. Text messages are typically read quickly, which makes them powerful and also makes unsolicited texts particularly annoying, which is why Australia regulates them.

The main law is the Spam Act 2003, enforced by the Australian Communications and Media Authority (ACMA). ACMA has issued substantial penalties to well-known businesses for spam breaches, often involving messages sent without consent or with unsubscribe processes that did not work. This guide explains how to comply, in plain English. It is general information, not legal advice.

What the Spam Act covers

The Spam Act applies to commercial electronic messages: emails, SMS, MMS and instant messages that offer, advertise or promote goods, services, land or business opportunities. It applies to messages with an "Australian link", which includes messages sent from Australia, sent by an Australian business, or sent to someone in Australia.

Purely factual messages, such as an appointment reminder without promotional content, are generally treated differently, but adding an offer turns it into a commercial message. Many messages that businesses think of as "just a reminder" contain promotional elements, so check carefully.

The three rules: consent, identify, unsubscribe

1. Consent

You need consent to send a commercial electronic message. There are two kinds:

• Express consent: the person actively agreed to receive messages from you, for example by ticking an unticked box, texting a keyword or signing up on a form. Keep a record of how and when.
• Inferred consent: consent that can reasonably be inferred from the person's conduct and an existing business or other relationship, such as an existing customer who has not opted out, where the messages relate to that relationship. Inferred consent is narrower than many businesses assume, so express consent is safer.

Under the Spam Act, you, the sender, must be able to prove consent. Bought or rented lists carry serious risk because you usually cannot.

2. Identify

Each commercial message must clearly and accurately identify the business that authorised it and include accurate contact details. For SMS, use your business name in the message or as the sender ID, and include a way to contact you.

3. Unsubscribe

Each commercial message must include a functional unsubscribe facility, such as "Reply STOP to opt out", and:

• Unsubscribe requests must be honoured within five working days
• The unsubscribe option must be clearly presented and low or no cost to use
• You must not require people to log in, pay a fee or provide unnecessary information to unsubscribe

A common ACMA finding is that businesses offered an unsubscribe link but kept messaging people afterwards through another system. Make sure opt-outs flow to every tool you use.

Telemarketing calls are different

If you also run voice campaigns, the Do Not Call Register Act 2006 and associated industry standards apply to telemarketing calls, including calling hours and restrictions on calling numbers on the Do Not Call Register without consent. The Spam Act covers messages; the Do Not Call rules cover calls. Pre-recorded voice messages have their own requirements.

SMS sender IDs in Australia

Australia has legislated an SMS Sender ID Register, administered by ACMA, to make it harder for scammers to impersonate trusted brands using alphanumeric sender names. Under the register, businesses that send messages with an alphanumeric sender ID are expected to register those IDs, and messages using unregistered IDs may be flagged or blocked as the scheme comes into full effect. Telcos already operate scam-reduction measures under industry codes. Ask your SMS provider about the current registration requirements before you launch a sender ID, and keep your sender name clearly linked to your registered business name or brand.

Privacy obligations

The Privacy Act 1988 and the Australian Privacy Principles apply to many businesses, including all businesses with annual turnover above $3 million and some smaller businesses in specific sectors. Australian Privacy Principle 7 deals with direct marketing. Even if your business is below the threshold, following the principles is good practice: tell people how you use their details, collect only what you need, keep data secure and respect their choices.

Practical ways to build a compliant SMS list

• Online checkout: an unticked box, "Text me offers and news from [Business]. Reply STOP to opt out any time."
• In-store: a QR code to a short sign-up form, or a keyword such as "Text VIP to [number]".
• Bookings: an SMS offers option on booking and enquiry forms.
• Loyalty programs: text offers as an optional benefit of membership.

Record the date, time, source and wording for each opt-in, and send a short confirmation text that repeats how to opt out.

Writing texts Australians respond to

• Start with your business name: "Bondi Barbers: ..."
• Keep it to one offer and one action: "Midweek special: $10 off cuts Tue–Wed. Book: bondibarbers.com.au/book"
• Include the opt-out: "Reply STOP to opt out"
• Avoid URL shorteners that hide the destination; use your own domain
• Send during sensible local hours. Australia has several time zones, and daylight saving applies in some states and not others, so schedule by recipient state.

How often should you text?

There is no legal frequency limit, but every extra message carries a risk of opt-outs and complaints. Most small businesses do well with two to four texts a month, timed around genuinely useful offers or information. Seasonal businesses can increase frequency around peak periods, as long as messages stay relevant.

Factual messages versus commercial messages

Many Australian businesses send a mix of messages, and the line between factual and commercial is where mistakes happen. Some examples:

• "Your appointment at Bondi Barbers is tomorrow at 10:00. Reply C to cancel." This is a factual reminder of an existing booking.
• "Your appointment is tomorrow at 10:00. Book your next cut now and get 20% off!" This includes a promotion, so it is likely to be a commercial electronic message that needs consent, identification and an unsubscribe option.
• "Your order has shipped. Track it here." Factual.
• "Your order has shipped. Here are three products you might like." Commercial.

When in doubt, treat the message as commercial and include your business name and an opt-out. It costs a few characters and removes the risk.

Mistakes that lead to ACMA action

• Sending to contacts without clear consent
• Treating every past enquiry as permanent consent
• Unsubscribe processes that do not work or take too long
• Messages that do not identify the business
• Using a third party to send messages without checking their consent records
• Continuing to send after an opt-out because lists were not synced across systems

What does SMS marketing cost in Australia?

Prices are in US dollars and follow our current price list. These prices are positioned below typical Australian agency and platform rates. Contact us for an exact quote.

A quick compliance checklist

1. Every recipient gave express consent, or you can genuinely rely on inferred consent.
2. You have records of that consent.
3. Each message identifies your business and how to contact you.
4. Each message has a working opt-out.
5. Opt-outs are processed within five working days across all systems.
6. Your sender ID is clearly linked to your business and registered where required.
7. Messages are sent at reasonable local times.

How DND Teams helps

We help businesses in Sydney, Melbourne, Brisbane and Perth set up compliant SMS programs and run campaigns that convert. Visit our bulk SMS services, read our Australian SMS compliance guide, or see how real estate agencies use WhatsApp.

Prices shown are indicative "starting from" figures in US dollars and exclude taxes and third-party charges (such as Meta or carrier fees) unless stated. Contact us for an exact quote. This article is general information, not legal advice, and reflects our understanding as of October 2026.