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

Caravan Parks Turn to Winter Offers as Travel Budgets Tighten

20 Jun 2026: Paige Estritori

Australian caravanners are being given fresh reasons to consider a winter getaway, with some park operators responding to softer demand by making off-season stays more attractive. The latest example comes from Barwon Coast Caravan Parks on Victoria’s Bellarine Peninsula, which is using a bold winter campaign and accommodation incentives to encourage travellers to visit outside the traditional summer peak. - read more

RBA Holds Rates, But Refinancers Should Stay Alert

20 Jun 2026: Paige Estritori

The Reserve Bank of Australia’s June decision has given mortgage holders a moment of breathing space, with the cash rate target left unchanged at 4.35 per cent. After three increases earlier in 2026, the pause will be welcome news for households already stretched by higher repayments, rising living costs and tighter lending assessments. - read more

RBA Holds Rates: A Timely Checkpoint for Borrowers

19 Jun 2026: Paige Estritori

The Reserve Bank of Australia’s June decision to keep the cash rate target unchanged at 4.35 per cent marks an important pause after three consecutive rate increases earlier in 2026. For households, sole traders and small to medium-sized business owners, the hold does not mean borrowing has suddenly become cheaper. It does, however, create a valuable moment to reassess existing debt, planned applications and overall cash flow before the next policy move. - read more

RBA Shock Warning: What It Means for Australians Managing Debt

19 Jun 2026: Paige Estritori

The Reserve Bank of Australia has issued a fresh warning that Australia’s financial system needs to be ready for a more unstable and disruption-prone future. In a 17 June 2026 speech, Assistant Governor Brad Jones pointed to rising geopolitical tension, cyber threats, foreign interference, sanctions risk and pressure on critical payments infrastructure as issues financial institutions can no longer treat as remote concerns. - read more

What AFIA’s Motor Finance Report Means for Car Buyers

19 Jun 2026: Paige Estritori

Australia’s motor finance market is changing quickly, and the latest report from the Australian Finance Industry Association, released on 5 June 2026, puts non-bank vehicle lenders firmly in the spotlight. The report says motor finance non-bank lenders supported 507,000 consumer and commercial vehicle purchases in 2025, with $24.4 billion in new loans and $53 billion in active loan balances at year end. - read more

Click for more Finance News