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25 September 2020
Today Hon Josh Frydenberg MP, the Treasurer, announced changes to the credit framework to make it easier for consumers and small businesses to access credit, reduce red tape, improve competition, and ensure that the strongest consumer protections are targeted at the most vulnerable Australians.
The Treasurer stated that what 'started a decade ago as a principles-based framework to regulate the provision of consumer credit has now evolved into a regime that is overly prescriptive, complex and unnecessarily onerous'.
According to the Treasurer’s media statement, the key elements of the reforms include:
AFIA believes the announcement to streamline credit processes and remove ambiguity with consumer and small business lending make sense. These changes should aim to make it easier, faster and simpler to access right-sized and best-priced credit to support economic recovery and underpin financial wellbeing.
It will be important to work through the details of the changes so strong consumer protections are maintained and sensible changes are introduced that reinforce the principles of prudent lending, while removing complexity, embracing technology and reducing burdens on lenders and borrowers.
The Government will consult publicly with stakeholders before finalising any legislation required to implement the reforms. AFIA will work with our members and stakeholders through the consultation on the legislative changes.
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