The National Consumer Credit Protection Amendment (Small Business Exemption No. 2) Regulations 2021 have been registered to reinstate the temporary small business exemption from responsible lending obligations that would otherwise apply to credit with a partial small business purpose. Background.
The Regulations also makes an amendment to the exemption period to prevent the responsible lending obligations from being temporarily re-imposed on a portion of credit activity (that has a partial small business purpose) ahead of their removal by the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 (if it is passed).
The amendments made by the Regulations ensure the small business exemption continues to apply until the relevant parts of the Bill commence or for a period of three years otherwise.
The National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 that is currently before the Parliament will implement these reforms by establishing a new regulatory framework for the provision of consumer credit.
Schedule 1 to the Bill will remove existing responsible lending obligations relating to the unsuitability of credit contracts, except in relation to small amount credit contracts (SACCs), SACC‑equivalent loans by authorised deposit-taking institutions (ADIs), and consumer leases. Background.
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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.