On 15 March 2021, the Morrison Government secured passage of the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 through the House of Representatives.
The credit reforms contained in the Bill are important for continuing to enable the Australian economy to recover from the COVID-19 pandemic. The reforms will reduce the cost and time it takes to access credit for Australian consumers and businesses, removing unnecessary barriers to accessing credit, which in turn will facilitate more economic activity.
These reforms follow on from the Government’s swift action during the onset of the pandemic to exempt the provision of credit to small businesses from the responsible lending obligations. This exemption is due to expire on 2 April 2021.
As part of the Government’s commitment to these reforms, the small business exemption will be extended until the Government secures passage of its credit reforms through the Senate.
The extension will continue to provide the certainty and confidence necessary to allow small businesses to access credit in a timely and efficient manner.
