The Treasury Laws Amendment (Acquisition as Consumer—Financial Thresholds) Regulations 2020 has been registered. When it comes into effect by 1 July 2021 it will increase the monetary threshold in the definition of ‘consumer’ for the purposes of the Australian Consumer Law (ACL) and the ASIC Act (for financial services) from $40,000 to $100,000.
Section 12BC of the ASIC Act and section 3 of the ACL define a ‘consumer’ for the purposes of acquiring goods or services. A person is taken to have acquired particular goods or services as a consumer if they meet one of the three criteria listed in the definition, one of which includes a monetary threshold, currently $40,000.
The Regulations insert new regulations 2DA into Part 1 of the ASIC Regulations and 77A into Part 6 of the CC Regulations respectively to prescribe a monetary threshold of $100,000 in these Regulations, for the purpose of the definition of ‘consumer’.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.