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

Schedule 1   Amendments

Part 1   Main amendments

National Consumer Credit Protection Regulations 2010

12   After regulation 105

Insert:

105AA Base price of goods

(1) For the purposes of subsection 175AA(6) of the Code, the base price of goods hired under a consumer lease is the lesser of:

(a) the agreed price of the goods; and

(b) either:

(i) for goods that are new on the day (the lease day ) the consumer lease is entered into - the amount under subregulation (3); or

(ii) for goods that are not new on the lease day - the amount under subregulation (4).

Agreed price

(2) The agreed price of goods hired under a consumer lease is the price of the goods agreed under the consumer lease by the parties to that lease, plus any related goods and services tax (if the amount of such tax is not already included in the price of the goods agreed under the lease).

Goods that are new on the lease day

(3) The amount under this subregulation for goods hired under a consumer lease is as follows:

(a) if:

(i) it is reasonably practicable for the lessor to determine what, on the lease day, was the recommended retail priceof the goods (including any goods and services tax); and

(ii) on the lease day, identical goodswere available for sale to the public from one or more suppliers that were independent of the lessor;

then the amount under this subregulation is the recommended retail price referred to in subparagraph (i) of this paragraph;

(b) if:

(i) paragraph (a) does not apply; and

(ii) the lessor bought the goods from a supplier that was independent of the lessor; and

(iii) on the day on which the lessor bought the goods, identical goods were available for sale to the public from that supplier; and

(iv) it is reasonably practicable for the lessor to determine what was the price that the lessor paid for the goods (including any related goods and services tax);

then the amount under this subregulation is the price referred to in subparagraph (iv) of this paragraph;

(c) if neither paragraph (a) nor (b) applies, then the amount under this subregulation is the market value of the goods on the lease day.

Note: For market value ,see subregulation (7).

Goods that are not new on the lease day

(4) The amount under this subregulation for goods hired under a consumer lease is as follows:

(a) if:

(i) the goods were new when they were acquired by the lessor or by a previous acquirer of the goods; and

(ii) it is reasonably practicable for the lessor to determine what, on the day on which the goods were last acquired new, was the recommended retail price of the goods (including any related goods and services tax); and

(iii) on the day on which the goods were last acquired new, identical goodswere available for sale to the public from one or more suppliers that were independent of the acquirer of the goods;

then the amount under this subregulation is the recommended retail price referred to in subparagraph (ii) of this paragraph, reduced in accordance with subregulation (5);

(b) if:

(i) paragraph (a) of this subregulation does not apply; and

(ii) the goods were bought, whether by the lessor or by a previous acquirer of the goods, from a supplier that was independent of the buyer of the goods; and

(iii) on the day on which the goods were last bought from such a supplier, identical goods were available for sale to the public from that supplier; and

(iv) it is reasonably practicable for the lessor to determine what, when the goods were last bought from such a supplier, was the price paid for the goods (including any related goods and services tax);

then the amount under this subregulation is the price referred to in subparagraph (iv) of this paragraph, reduced in accordance with subregulation (5);

(c) if neither paragraph (a) nor (b) of this subregulation applies, then the amount under this subregulation is the market value of the goods on the lease day.

Note 1: If the lessor was the manufacturer of the goods, see subregulation (6) for when the lessor is taken to have acquired the goods.

Note 2: For market value ,see subregulation (7).

(5) For the purposes of subregulation (4), the price referred to in subparagraph 4(a)(ii) or (4)(b)(iv) is to be reduced by:

(a) if the period:

(i) starting on the day the goods were last acquired new as mentioned in subparagraph (4)(a)(ii), or on the day the goods were last bought as mentioned in subparagraph (4)(b)(iv), whichever is applicable; and

(ii) ending on the lease day;

is 12 months or less - 12.5% of that price; or

(b) if that period is more than 12 months but less than or equal to 24 months - 25% of that price; or

(c) if that period is more than 24 months but less than or equal to 36 months - 37.5% of that price; or

(d) otherwise - 50% of that price.

Other matters

(6) For the purposes of this regulation, if a lessor was the manufacturer of goods hired under a consumer lease, then the lessor is taken to have acquired the goods on the first day on which:

(a) the manufacturing process is complete; and

(b) the goods are ready for sale or lease.

(7) In this regulation:

market value , of goods hired under a consumer lease, means fair market value including any goods and services tax.