The NSW Credit (Commonwealth Powers) Amendment (Maximum Annual Percentage Rate) Bill 2011 will, if passed, extend the life of NSW’s maximum interest rate cap beyond 1 July 2011 to a date fixed by proclamation following agreement between the States and the Commonwealth on a harmonised approach to maximum rates.
NSW currently has an annual interest rate cap of 48 per cent, inclusive of fees and charges and fees paid to third parties such as brokers.
Currently, Victoria, Queensland and the ACT also impose an interest rate cap on regulated consumer credit. There are no caps in Western Australia, Tamania and South Australia.
In Queensland and the ACT the annual cap of 48% is generally calculated inclusive of interest, fees and charges other than government fees, charges and duties (there are some variations between the states).
In Victoria, a cap of 48% is imposed on unsecured credit regulated by the UCCC, and a cap of 30% imposed on secured credit regulated by the UCCC. The caps are imposed on the interest component alone, and the cap is not inclusive of fees and charges.