Bill
National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020
lapsed, as at 2022-07-25. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2020-12-09
- second reading — 2020-12-09
- second reading — 2021-02-24
- second reading — 2021-02-25
- second reading — 2021-03-15
- second reading — 2021-03-15
- third reading — 2021-03-15
- third reading — 2021-03-15
- third reading — 2021-03-15
- introduced — 2021-03-16
- second reading — 2021-03-16
- other — 2022-07-25
Divisions
- The majority voted in favour of an [amendment](https://www.openaustralia.org.au/senate/?gid=2020-12-10.32.1) introduced by ACT Senator [Katy Gallagher](https://theyvoteforyou.org.au/people/senate/act/katy_gallagher) (Labor), which means the text below will be added to the end of the original motion. ### Amendment text > *At the end of the motion, add:* > > *"but, in respect of the provisions of the [National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6656), the [Economics Legislation Committee](https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics) report by 12 March 2021."* — 2020-12-10, Senate: affirmative, ayes 31, noes 29
- The majority voted in favour of leaving the usual second reading motion unchanged. That is, they voted "*that the words proposed to be omitted stand part of the question.*" The usual second reading motion is "that the bill be read a [second time](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/)," which is parliamentary jargon for agreeing with the main idea of the bill. ### What does the bill do? According to the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2021a/21bd052), the bill would introduce: > * *amendments to the responsible lending obligations so that they apply only to small amount credit contracts (SACCs), SACC-equivalent loans by authorised deposit-taking institutions (ADIs) and consumer leases and* > * *enhancements to the consumer protection framework in relation to small amount credit contracts and consumer leases.* — 2021-03-15, House of Representatives: affirmative, ayes 62, noes 60
- National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 - Third Reading - Speed things along — 2021-03-15, House of Representatives: affirmative, ayes 63, noes 60
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/debates/?id=2021-03-15.118.1) to pass the bill, which is known as giving the bill a [third reading](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/). This means the bill will now be sent to the Senate for their consideration. ### What does the bill do? According to the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2021a/21bd052), the bill would introduce: > * *amendments to the responsible lending obligations so that they apply only to small amount credit contracts (SACCs), SACC-equivalent loans by authorised deposit-taking institutions (ADIs) and consumer leases and* > * *enhancements to the consumer protection framework in relation to small amount credit contracts and consumer leases.* — 2021-03-15, House of Representatives: affirmative, ayes 63, noes 60
- The same number of senators voted for and against the motion: > *That if by 12 August 2021 the government business order of the day relating to the consideration of the [National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6656) has not been finally considered, the order of the day be discharged from the Notice Paper.* This means that this motion was unsuccessful. — 2021-06-23, Senate: negative, ayes 27, noes 27
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2020-12-09.
The bill would limit responsible lending checks to payday loans and rent-to-buy goods from March 2021.
Credit advisers would have to put their customers' interests first when recommending loans or leases.
The minister could set new system-level rules for how non-bank lenders run their credit operations.
- Responsible lending obligations are narrowed to small amount credit contracts and consumer leases.
- Best interest duties are extended from mortgage brokers to all credit assistance providers.
- A new framework lets the minister make credit standards for non-ADI lenders via legislative instrument.
Credit assistance providers, non-bank lenders, and consumers taking small loans or consumer leases.
Sources
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