The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Treasury has rolled out a fresh update to the lending landscape with the release of the Treasury Laws Amendment Instrument 2024: Small Business Exemption, bringing new changes up for public discussion.
The proposed regulations, aimed at modifying the National Consumer Credit Protection Regulations 2010, will push the deadline of the current small business lending exemption to October 3, 2026, from its original expiry of October 3, 2024.
Essentially, this extension means that loans serving both personal and legitimate business purposes-where the business component isn't marginal-will remain exempt from responsible lending regulations.
Current consumer credit laws, highlighted in Chapter 3 of the National Credit Act, generally bypass commercial funding. However, mixed-purpose loans (for example, blending personal and commercial finance needs) are subject to these laws unless it is evident that the primary use is for business.
Eligibility for the exemption defines a small business as having fewer than 100 employees or recording revenue of $5 million or below in the last fiscal year.
Extending the exemption offers more runtime for gathering data, which will aid in making a well-informed future decision about whether the exemption should become permanent, expire, or be altered to boost efficacy.
This approach appears to shed light on the adaptability of lending regulations, pushing boundaries for the benefit of small business dynamics within the evolving market landscape.
Source: Initially reported by David Jacobson, Bright Corporate Law Principal.
Disclaimer: This information is shared for informative purposes and should not be considered as legal advice. Always seek expert consultation to address specific needs before acting on any information provided.
Published:Thursday, 15th Aug 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
In recent years, Australia's financial sector has witnessed a notable shift in lending and enforcement practices. Non-bank lenders have significantly increased their court enforcement actions, while major banks have concurrently reduced their involvement in such proceedings. This trend underscores a changing dynamic in creditor behaviour and raises important considerations for small and medium-sized enterprises (SMEs) seeking financing. - read more
In the final quarter of 2025, Australian small and medium-sized enterprises (SMEs) exhibited a cautious approach to borrowing, influenced by ongoing uncertainties surrounding inflation and interest rates. This trend has led to a noticeable decline in lending volumes, reflecting the broader economic apprehensions within the SME sector. - read more
In the third quarter of 2025, Australia experienced a notable uptick in commercial credit demand, reflecting a resurgence in business confidence across the nation. Data from Equifax indicates a 3% year-on-year increase in overall commercial credit demand, with business loan applications playing a significant role in this growth. - read more
In a remarkable demonstration of Australia's expanding asset finance sector, Loan Market Group's Asset Finance Exchange (AFX) has reported settlements totaling approximately $80 million within its first year of operation. This achievement underscores the platform's effectiveness in connecting mortgage brokers with asset finance specialists, thereby facilitating substantial business growth. - read more
Valiant Finance, an Australian business finance marketplace established in 2015, has achieved a significant milestone by facilitating over $2.5 billion in loans to more than 20,000 small and medium-sized enterprises (SMEs) across the country. This accomplishment underscores the growing reliance on digital platforms for business financing solutions. - read more
In a strategic initiative to bolster its presence in the Pacific region, ANZ has secured a A$2 billion loan guarantee from the Australian government. This 10-year agreement aims to ensure the bank's continued operation of its Pacific branch network, serving as a countermeasure to growing regional influences. - read more
In response to the growing demand for small and medium-sized enterprise (SME) financing in Australia, non-bank lender So Money has expanded its services to include tailored lending solutions for self-employed borrowers and SMEs. This strategic move aims to simplify the income verification process and strengthen partnerships with brokers, thereby enhancing access to business financing. - read more
In the ever-evolving landscape of Australian business, equipment leasing has emerged as a pivotal financial tool for companies across the spectrum. Whether you're a small start-up or a well-established corporation, the agility to pivot and adapt to market changes is critical. This introduction seeks to shed light on the concept of equipment leasing and its significance in bolstering the operational efficiency of Australian businesses. - read more
Effective planning is the backbone of any thriving business, and when it comes to leveraging financial products like business loans, this foresight becomes even more crucial. In the dynamic economic landscape of Australia, businesses are continually walking a tightrope, balancing investment, growth, and financial stability. The importance of prudent and strategic planning for business loan utilization cannot be overstated; it can mean the difference between a flourishing enterprise and one that struggles to keep its head above water. - read more
Mezzanine finance represents a sophisticated instrument within the realm of corporate finance, often utilized as a strategic tool when more traditional forms of capital are not ideally suited or are insufficient for a firm's needs. Inherently, it serves as a hybrid between debt and equity financing, tailored to support growth initiatives such as business acquisitions. - read more
Welcome to the world of boating! Whether you've just bought your first boat or are considering making a purchase, it's essential to understand the importance of regular maintenance. Proper upkeep not only extends the life of your boat but also ensures safety while out on the water. - read more
Starting a business often requires a substantial amount of capital, which many new business owners may not have readily available. Business loans can provide the necessary funding to help get your startup off the ground, from purchasing equipment to hiring staff and everything in between. - read more
Financial planning plays a crucial role when businesses are poised for growth. As enterprises expand, a well-crafted financial plan acts as a guiding framework to navigate the complexities that come with scaling operations. This plan helps in ensuring that resources are meticulously allocated and potential financial hurdles are effectively managed. - read more
In the dynamic world of business, navigating credit challenges is a reality for many Australian business owners. These challenges can stem from various sources, including unpaid customer invoices, unexpected expenses, or the complexities of managing cash flow. Such hurdles often come at inopportune moments, leading to recurring stress for entrepreneurs trying to maintain a stable financial standing. - read more
Need Help Finding a Loan?
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Interest Rate Lock: An agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage for a specified time period.