The National Consumer Credit Protection Amendment (Small Business Exemption) Regulations 2026 have been registered to amend the National Consumer Credit Protection Regulations 2010 by extending the existing exemption from responsible lending obligations for small business borrowers for 10 years from 4 October 2026.

The exemption provides that mixed purpose loans to a consumer (for example, where a small business operated by an individual applies for a single loan to be used for both personal and commercial purposes) are exempt from responsible lending requirements so long as there is a ‘genuine’ small business purpose component that is not minor or incidental.

Under the genuine purpose test, the lender need only establish that there is a genuine business purpose that is not minor or incidental to the overall purposes of the related credit provision.

For the purposes of the exemption, a small business meets the test in the Australian Small Business and Family Enterprise Ombudsman Act 2015 by having fewer than 100 employees or revenue of $5 million or less in the previous financial year.

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Author: David Jacobson
Principal, Bright Corporate Law
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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.