Treasury Laws Amendment (Modernising Business Communications and Other Measures) Act 2023 (69 of 2023)

Schedule 4 Miscellaneous and technical amendments

Part 1 Amendments commencing day after Royal Assent

Division 21 Continuing credit contracts exemption

National Consumer Credit Protection Regulations 2010

103 Regulation 51

Repeal the regulation, substitute:

51 Exempt credit - maximum account charges

For the purposes of subsection 6(5) of the Code, for a continuing credit contract under which the only charge that is or may be made for providing credit:

(a) is periodic or fixed; and

(b) does not vary according to the amount of credit provided;

the prescribed maximum charge for the contract (the eligible contract ) is as follows.

Prescribed maximum charge
Item	If:	Then the prescribed maximum charge is:
1	the debtor is not already a party to an eligible contract with the credit provider, or with an associate of the credit provider, when the eligible contract is entered into	(a) for the 12-month period commencing when the debtor enters into the eligible contract - $200; and (b) for any later 12-month period during which the eligible contract is in effect - $125
2	when the eligible contract (the new eligible contract ) is entered into: (a) the debtor: (i) is already; or (ii) was within the previous 12 months; a party to an eligible contract with the credit provider or with an associate of the credit provider; and (b) neither the credit provider nor the associate of the credit provider is an ADI	(a) for the 12-month period commencing when the debtor enters into the new eligible contract - nil; and (b) for any later 12-month period during which the new eligible credit contract is in effect - nil

Prescribed maximum charge

Item

If:

Then the prescribed maximum charge is:

the debtor is not already a party to an eligible contract with the credit provider, or with an associate of the credit provider, when the eligible contract is entered into

(a) for the 12-month period commencing when the debtor enters into the eligible contract - $200; and

(b) for any later 12-month period during which the eligible contract is in effect - $125

when the eligible contract (the new eligible contract ) is entered into:

(a) the debtor:

(i) is already; or

(ii) was within the previous 12 months;

a party to an eligible contract with the credit provider or with an associate of the credit provider; and

(b) neither the credit provider nor the associate of the credit provider is an ADI

(a) for the 12-month period commencing when the debtor enters into the new eligible contract - nil; and

(b) for any later 12-month period during which the new eligible credit contract is in effect - nil

Note: Under subsection 6(5) of the Code, the Code does not apply to the provision of credit under an eligible contract unless the only charge that is or may be made for providing credit under the contract exceeds the maximum charge prescribed by this regulation.

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