The Treasurer has announced that the government will maintain the exemption from responsible lending obligations for lenders providing credit to existing small business customers despite the delay in passage of the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020. Background.
UPDATE: The National Consumer Credit Protection Amendment (Small Business Exemption) Regulations 2021 were registered on 1 April 2021.
This instrument amends the National Consumer Credit Protection Regulations 2010 to align the end of the small business exemption with the removal of responsible lending obligations by the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Act 2021.
The Bill will not be considered by the Senate until the Budget session commencing on 11 May at the earliest.
The small business exemption was introduced as a temporary COVID relief measure in April 2020 and is due to expire on 2 April 2021.
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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.