Key Documents
The government has released Treasury Laws Amendment Instrument 2024: Small Business Exemption (the Draft Regulations) for public comment.
Consumer credit laws, including responsible lending obligations (RLOs), do not generally apply to business and commercial lending. However, they apply to mixed-purpose loans (for example, where a small business or sole trader applies for a single loan that may have both personal and commercial benefits) if the ‘predominant’ purpose of the loan is not business-related.
In April 2020, a time-limited exemption was added to the National Consumer Credit Protection Regulations 2010 (the Credit Regulations). The exemption provides that small business loans are exempt from RLOs so long as there is a genuine business purpose that is not minor or incidental. The exemption has been extended 3 times and is due to expire on 3 October 2024.
The Draft Regulations amend the Credit Regulations to extend the exemption for a further 2 years, until 3 October 2026.
The government welcomes interested parties to provide feedback on the proposed extension.
Responding
You can submit responses to this consultation up until 19 August 2024. Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
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View our submission guidelines for further information.
How To Respond
Post
Address written submissions to:
Langton Cres
Parkes ACT 2600