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🏛 House of Representatives3 readingsAmendments circulated

National Consumer Credit Protection Amendment (Supporting Economic Recovery) 2020

✦ Plain-English Summary

# National Consumer Credit Protection Amendment (Supporting Economic Recovery) 2020

## What it does

This bill updates Australia's consumer credit laws to make it easier for people and businesses to get loans and credit during economic recovery. It changes the rules around small loans, lease agreements, and how lenders must assess whether borrowing is in your best interests.

## Why it matters

During tough economic times, stricter lending rules can make it harder for people to access credit when they need it. This bill relaxes some of those rules to free up lending, though consumer protections remain in place.

## Key details

- **Timing**: Most changes kick in from March 2021, with some taking effect 6 months later to give lenders time to adjust
- **Small loans**: The bill eases requirements for small amount credit contracts (like payday loans), reducing paperwork and approval times
- **Lease changes**: New rules for consumer leases (like renting goods) simplify agreements and remove some existing restrictions
- **Best interests test**: Lenders get more flexibility in assessing whether a loan suits the borrower, rather than applying rigid rules

Official Description

Amends the: National Consumer Credit Protection Act 2009 to: provide that responsible lending obligations apply only to small amount credit contracts, small amount credit contract-equivalent loans provided by authorised deposit-taking institutions (ADIs) and consumer leases; provide the minister with the power to determine standards specifying requirements for a credit licensee's systems, policies and processes in relation to certain non-ADI credit conduct; impose a cap on the total payments that can be made by a lessee in connection with a consumer lease; extend the protected earnings requirement for small amount credit contracts to cover all consumers and introduce a similar protected earnings requirements for consumer leases for household goods; restrict the use and disclosure of account statements; amend requirements for licensees to disclose information to consumers; introduce broad anti-avoidance protections to prohibit schemes that are designed to avoid the application of the Act in relation to small amount credit contracts and consumer leases; and make consequential amendments; and Age Discrimination Act 2004 to exempt the reverse mortgage scheme from the application of the Act.

Committee Referrals

Senate Economics Legislation Committee; Senate Standing Committee for the Scrutiny of Bills

Full bill PDF →APH page →

Audit History

Introduced

9 Dec 2020

Last updated on APH

10 Apr 2026

Last checked by Crossbench

yesterday

Full text indexed

yesterday

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