The Commonwealth Budget has confirmed the Regulatory Initiatives Grid statement that the exemption of small business loans from the National Credit Act responsible lending obligations will be extended for a further 10 years to October 2036.

The Regulations currently provides that certain mixed-purpose small business loans are exempt from the responsible lending obligations so long as there is a ‘genuine’ business purpose that is not minor or incidental to a personal borrowing.

Treasury will consult on exposure draft legislation to update the National Consumer Credit Protection Regulations 2010 ahead of the current 3 October 2026 expiry.

It will apply to loans to businesses with fewer than 100 employees or a revenue of $5million or less in the previous financial year. Background.

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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.