Phase 2 of National Credit Reforms

16 January 2013

National Consumer Credit Protection Amendment (Credit Reform Phase 2) Bill 2012


  • Treasury proposes to expand the scope of consumer lending regulation, including to small business and non-residential investment lending.  Those changes are likely to affect financial institutions who are already regulated. 
  • However, changes to the regulation of private lending will also impact solicitors and other intermediaries (such as peer-to-peer platforms) who arrange credit from private lenders who were previously unregulated.  Private lenders who were otherwise exempt (such as charitable organisations who are not in the business of providing credit) may find themselves regulated if they provide credit through an intermediary. 
  • Provisions seeking to address avoidance of the Code have also been included (including amending provisions relating to short-term and indefinite consumer leases).


Draft legislation for Phase two of national credit reforms has been released by Treasury for public consultation.  The consultation package includes a draft Bill and draft Regulations.  The proposed reforms were foreshadowed in the 2010 Green Paper which has already been the subject of industry consultation. 

The reforms introduced by the draft legislation touch on lending products that were previously unregulated, including: small business lending; non-residential investment lending; private lending; and certain previously excluded consumer leases.  The draft Bill also introduces a broad anti-avoidance provision.


The closing date for submissions is Friday 15 February 2013.

We are available to provide you with further information or assistance on the contact details to the right.

Click 'Download' to read the full article.

The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.

Related Content


Michael Chaaya

Partner. Sydney
+61 2 9210 6627


Joanne Dwyer

Special Counsel. Brisbane
+61 7 3228 9375


Christine Maher

Consultant. Brisbane
+61 7 3228 9413