Explanatory Memorandum
(Circulated by the authority of the Minister for Human Services, Minister for Financial Services, Superannuation and Corporate Law, the Hon Chris Bowen MP)General outline and financial impact
Outline
The National Consumer Credit Protection Amendment Bill 2010 (Amendment Bill) makes amendments to the National Consumer Credit Protection Act 2009 (Credit Act). The Credit Act establishes a new national credit protection regime based in part on referrals of power from the States.
Tasmania has referred power in the Credit (Commonwealth Powers) Act 2009 which commenced on 17 November 2009. Some other States have requested a variation to the scope of the amendment power as set out in the Tasmanian Act. They have also requested that the national credit protection regime provide for the States to adopt, under paragraph 51(xxxvii) of the Constitution, the National Consumer Credit Protection Act 2009 and National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 (National Credit legislation) at the same time as they refer the amendment power.
To accommodate this request, it is necessary to treat as a 'referring State' for the purposes of the Credit Act, a State which refers with the inclusion of 'carve out' provisions to the amendment power in the Proposed State Credit (Commonwealth Powers) Act (Referral Bill); and a State which 'adopts', under paragraph 51(xxxvii) of the Constitution, the National Credit legislation and refers an agreed amendment power.
These amendments to the Credit Act will ensure that the Credit Act remains fully effective.
Date of effect: The Amendment Bill commences on the day the Bill receives the Royal Assent.
Proposal announced: The proposal to transfer responsibility for regulating consumer credit to the Commonwealth was announced by the Council of Australian Governments (COAG) on 26 March, 3 July and 2 October 2008.
Financial impact: The measures within this Amendment Bill will not have a financial impact.
Compliance cost impact: The measures within the Amendment Bill will not have a compliance cost impact.
Summary of regulation impact statement
Regulation impact on business
Impact: A regulation impact statement was prepared for the National Credit legislation as a package which is set out in the explanatory memorandum to the Credit Act.