Do you want a credit licence? Procedures in determining whether you’ll need a credit licence

You will generally need an Australian credit licence or authorisation from a credit licensee before starting business if you engage in credit activities.

Browse the information provided in the credit certification regime within our selection of regulatory guides for licensees.In particular, see:

Key factors

To determine you need to consider whether you engage in activities that can only be provided under an Australian credit licence:

  • whether your activities relate to a type of consumer or credit rent to that the nationwide Credit Code relates
    • The Code pertains to some forms of credit that you could perhaps not think about as being ‘credit’, as an example if you should be a shop owner or investor whom offers guide up (a standard training in a lot of remote and local communities where customers purchase items or solutions and pay later) you’re supplying a form of credit rating. It’s likely you’ll desire a credit licence in the event that you charge customers interest or costs for using guide up
    • The Code additionally excludes some forms of consumer and credit leases. In the event that you just participate in activities with regards to most of these credit and leases, you won’t desire a licence
    • If the Code does apply, whether your activities are a type or sort of credit task this is certainly included in the certification needs into the nationwide credit rating Protection Act 2009 (National Credit Act).
    • Credit task

      Credit task (as defined into the National Credit Act) includes:

    • Providing credit under a credit consumer or contract lease
    • taking advantage of mortgages or guarantees associated with a credit agreement
    • working out legal rights or doing responsibilities of the credit provider or lessor (either while the credit provider or lessor or on the behalf of someone who’s the credit provider or lessor)
    • suggesting or assisting for a credit that is particular or customer rent
    • acting as an intermediary from a credit provider and a customer ( for a credit agreement) or from a lessor and a customer ( for a customer rent).
    • Would youn’t require a credit licence?

      There is no need to keep a credit licence if:

    • You are a representative of another person who holds a licence and you engage in credit activities on their behalf – you might be in a position to work as representative if:
      • you might be authorised being a credit agent to take part in credit tasks on the part of a credit licensee
      • you might be a member of staff or manager of a credit licensee or certainly one of its bodies that are related
      • you, or perhaps the sort of credit task you participate in, are exempt through the credit certification demands, or
      • ASIC grants you rest from the necessity to hold a credit licence.
      • You can find a true amount of exemptions through the credit certification needs into the nationwide Credit Act therefore the National credit Protection Regulations 2010, for many types of individuals and tasks.

        For instance, you may have the ability to depend on an exemption if you should be:

      • a business or individual insolvency practitioner, attorney or registered taxation representative
      • a point-of-sale store
      • a financial counsellor or economic counselling agency that partcipates in credit task included in a monetary counselling solution
      • a clerk or cashier
      • A debt that is state-licensed or repossession representative.
      • Types of tasks which can be included in exemptions consist of:

      • passing on prepared documents or factual information in reaction to a request
      • referring a customer up to a credit licensee.
      • Most of the exemptions through the certification requirements only use in a few circumstances, of course specific needs are met. You should make sure you meet each of the requirements if you want to rely on an exemption.