auDA tightens .com.au rules, risking 1M domains

Australia’s .au Domain Administration (auDA) has approved a policy change that could force over one million businesses to relinquish their .com.au and .net.au domains unless they align with strict new naming rules. The decision removes a long-standing provision allowing domains to reflect products, services, events, or trust structures, instead requiring an exact match to a registered company name, business name, or trademark. The move has sparked concerns over administrative burdens, financial costs, and potential disruptions to the Australian digital economy.

What the policy change entails

The auDA board voted to eliminate subparagraph (f) from section 2.4.4(2) of the .au Licensing Rules, which previously permitted domain registrations based on broader criteria, such as product names or trust ownership. Under the revised rules, domains must now correspond directly to a name registered with the Australian Securities and Investments Commission (ASIC) or a trademark filed with IP Australia. This excludes domains held by trusts, those tied to specific products or campaigns, or names acquired through business transfers where the original registration lapsed.

The change affects an estimated one million existing .com.au and .net.au domains, many of which have been active for over a decade. Businesses relying on non-compliant domains will need to either rebrand, register new business names or trademarks, or risk losing their online presence. Compliance costs are expected to exceed $500 million collectively, with individual businesses facing annual fees of $650 for ASIC registrations or legal expenses of $900 or more for trademark filings.

Industry and business impact

The policy shift has drawn criticism from domain registrars, hosting providers, and small businesses, who warn of widespread confusion and operational disruptions. Major registrars such as GoDaddy, VentraIP, and Crazy Domains are expected to face a surge in support requests as customers grapple with compliance notices. Many businesses may opt to abandon their .com.au domains rather than incur additional costs, potentially accelerating migration to unrestricted global TLDs like .com or .co.

Some may pivot to the newer, direct .au namespace, which currently has looser eligibility requirements. However, concerns persist that auDA could extend similar restrictions to .au domains in the future, given the board’s demonstrated willingness to overhaul long-standing rules. Domain investors and drop-catch services are also likely to benefit, as lapsed domains become available for re-registration.

What to watch

The timeline for enforcement remains unclear, but businesses are advised to review their domain portfolios immediately. Key questions include whether auDA will offer a grace period for compliance and how strictly the new rules will be applied to existing registrations. Industry observers are also monitoring potential legal challenges or lobbying efforts to reverse or amend the policy. Meanwhile, the Australian government stands to benefit from a surge in ASIC registrations, many of which may serve no purpose beyond domain compliance.