National Consumer Credit Protection Amendment (Financial Sector Reform) Regulations 2023 (F2023L00540)

Schedule 1   Amendments

Part 1   Main amendments

National Consumer Credit Protection Regulations 2010

3   Regulations 28LCA to 28LCD

Repeal the regulations, substitute:

28LCA Small amount credit contracts - income requirements

(1) For the purposes of subsection 133CC(1) of the Act, this regulation prescribes a requirement for repayments that would be required under a small amount credit contract with a consumer who would be the debtor under the contract.

(2) The requirement for a repayment that would be required during a repayment period under such a contract with a consumer is that the sum of:

(a) the amount of the repayment; and

(b) any other amounts the consumer is required to pay under any other small amount credit contracts during the repayment period;

would be equal to or less than 10% of the available income the consumer is reasonably expected to receive during the repayment period.

(3) In this regulation:

available income , for a consumer, means the consumer's income less any amount required to be withheld under Part 2-5 in Schedule 1 to the Taxation Administration Act 1953 (Pay as you go (PAYG) withholding).

income means income within the ordinary meaning of that expression.

repayment period : each of the following is a repayment period in relation to a small amount credit contract:

(a) the period:

(i) starting on the day the contract is entered into; and

(ii) ending on the first repayment date in relation to the contract;

(b) a period:

(i) starting on the day after a repayment date in relation to the contract; and

(ii) ending on the subsequent repayment date in relation to the contract.

28LCB Consumer leases for household goods - income requirements

(1) For the purposes of subsection 156B(1) of the Act, this regulation prescribes a requirement for the amount that would be required to be paid under a consumer lease for household goods with a consumer who would be the lessee under the lease.

(2) The requirement for the amount is that, for any part of the amount that would be required to be paid during a repayment period under such a lease with a consumer, the sum of:

(a) that partof the amount; and

(b) any other amounts the consumer is required to pay under any other consumer leases during the repayment period;

would be equal to or less than 10% of the available income the consumer is reasonably expected to receive during the repayment period.

(3) In this regulation:

available income , for a consumer, means the consumer's income less any amount required to be withheld under Part 2-5 in Schedule 1 to the Taxation Administration Act 1953 (Pay as you go (PAYG) withholding).

income means income within the ordinary meaning of that expression.

lease repayment day , in relation to a consumer lease for household goods, means the day on or by which a repayment is required to be made under the lease.

repayment period : each of the following is a repayment period in relation to a consumer lease for household goods:

(a) the period:

(i) starting on the day the lease is entered into; and

(ii) ending on the first lease repayment day in relation to the lease;

(b) a period:

(i) starting on the day after a lease repayment day in relation to the lease; and

(ii) ending on the subsequent lease repayment day in relation to the lease.

28LCC Constrained documents and constrained information

Constrained documents

(1) For the purposes of paragraph 160CA(1)(a) of the Act, the following documents are prescribed:

(a) an income statement issued by Services Australia;

(b) a deduction statement issued by Services Australia.

Constrained information

(2) For the purposes of paragraph 160CA(1)(a) of the Act, information that a licensee has obtained as a result of taking the steps prescribed by subregulation 28HB(6) or (7) (obtaining and considering information to verify financial situation of consumers) is prescribed.