New Horizon for Small Business Lending Rules

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The proposed regulations, aimed at modifying the National Consumer Credit Protection Regulations 2010, will push the deadline of the current small business lending exemption to October 3, 2026, from its original expiry of October 3, 2024.

Essentially, this extension means that loans serving both personal and legitimate business purposes—where the business component isn't marginal—will remain exempt from responsible lending regulations.

Current consumer credit laws, highlighted in Chapter 3 of the National Credit Act, generally bypass commercial funding. However, mixed-purpose loans (for example, blending personal and commercial finance needs) are subject to these laws unless it is evident that the primary use is for business.

Eligibility for the exemption defines a small business as having fewer than 100 employees or recording revenue of $5 million or below in the last fiscal year.

Extending the exemption offers more runtime for gathering data, which will aid in making a well-informed future decision about whether the exemption should become permanent, expire, or be altered to boost efficacy.

This approach appears to shed light on the adaptability of lending regulations, pushing boundaries for the benefit of small business dynamics within the evolving market landscape.

Source: Initially reported by David Jacobson, Bright Corporate Law Principal.

Disclaimer: This information is shared for informative purposes and should not be considered as legal advice. Always seek expert consultation to address specific needs before acting on any information provided.

Published:Thursday, 15th Aug 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Renault Megane E-Tech Return Adds a New Budget Test for EV Buyers

28 Oct 2026: Paige Estritori

Renault has reopened the Australian order book for the updated Megane E-Tech, giving EV buyers another mid-priced electric hatchback to consider as they plan finance for 2027 deliveries. The refreshed model is priced from $55,990 plus on-road costs in a single Esprit Alpine grade, with showroom arrivals due in the first half of 2027 after a break in local availability. - read more

NSW strata charger reforms could reshape apartment EV budgeting

28 Oct 2026: Paige Estritori

NSW has moved closer to making apartment EV charging a practical part of vehicle ownership, with the Strata Schemes Legislation Amendment (Miscellaneous) Act 2026 assented on 23 October and government guidance indicating further reforms planned to start in 2027. For electric vehicle buyers in strata buildings, the change is not just a property-law update; it could affect how households think about finance, charging access and the real cost of switching from petrol to electric. - read more

Why falling house prices still need careful loan planning

28 Oct 2026: Paige Estritori

Australia’s spring property market has shifted sharply, with Domain’s September Quarter 2026 House Price Report, released on 22 October 2026, pointing to a broader downturn across the capitals. Combined capital city house prices fell 4.7 per cent over the quarter, while unit prices fell 3.5 per cent. For first-home buyers, that may sound like welcome relief after years of affordability pressure, but lower purchase prices are only one part of the home loan equation. - read more

New Victorian Auction Rules Put Price Transparency in Focus

28 Oct 2026: Paige Estritori

Victoria’s new property sales and underquoting rules have moved from policy debate to live market test, with Consumer Affairs Victoria monitoring auctions as agents, sellers and buyers adjust to a more transparent pricing regime. For first home buyers, the change matters because auction campaigns can be expensive, emotional and confusing, especially when the advertised price range does not match the seller’s real expectations. - read more

RBA's October warning sharpens focus on motorcycle repayments

28 Oct 2026: Paige Estritori

The Reserve Bank of Australia's latest parliamentary testimony has given motorcycle buyers a timely reminder that borrowing conditions remain sensitive to inflation, lender pricing and household budget pressure. Governor Michele Bullock told a Senate economics committee on 28 October 2026 that inflation has remained above target, the cash rate has risen by a cumulative 100 basis points this year, and the Monetary Policy Board will meet again next week to assess whether the tightening already delivered is enough. - read more

Click for more Finance News