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Simplifying Access to Credit for Consumers and Small Business

Media Releases

Date : 22 September 2020

Author: The Hon Josh Frydenberg MP & The Hon Michael Sukkar MP

The Hon Josh Frydenberg MP

Treasurer

The Hon Michael Sukkar MP

Minister for Housing and Assistant Treasurer

JOINT MEDIA RELEASE

25 September 2020

SIMPLIFYING ACCESS TO CREDIT FOR CONSUMERS AND SMALL BUSINESS

As part of the Morrison Government’s economic recovery plan, we are reducing the cost and time it takes consumers and businesses to access credit.

Credit is the lifeblood of the Australian economy, with billions of dollars in new credit extended to households and businesses in Australia each month.

Now more than ever, it is critical that unnecessary barriers to accessing credit are removed so that consumers can continue to spend and businesses can invest and create jobs.

What started a decade ago as a principles based framework to regulate the provision of consumer credit has now evolved into a regime that is overly prescriptive, complex and unnecessarily onerous on consumers.

The Government will simplify the system by moving away from a “one-size-fits-all” approach while at the same time strengthening consumer protections for those that need it.

Key elements of the reforms include:

These changes will make it easier for the majority of Australians and small businesses to access credit, reduce red tape, improve competition, and ensure that the strongest consumer protections are targeted at the most vulnerable Australians.

The Government will consult publicly with stakeholders before finalising any legislation required to implement the reforms.

Further information on the measures can be found on the Treasury website.

Ends.

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