06 Nov Govt protects small business’ access to credit
The federal government has extended the small business responsible lending obligations exemption.
Currently, an exemption allows businesses with fewer than 100 staff and less than $5 million turnover to access credit without being assessed against the responsible lending obligations, so long as there is a genuine business purpose.
The exemption was first issued in April 2020; since then, it has been extended three times; now, it will be extended again, by two years, to 3 October 2026.
“By extending the program, we’ll gather more data to ensure the changes are safe and there are no adverse effects before considering next steps,” Assistant Treasurer Stephen Jones said.
Australian Banking Association acting CEO Vanessa Beggs said one in four SMEs had reported wanting to increase their capital investment, so this extension would help small businesses continue to access the credit they need.
“Small businesses are the lifeblood of our economy. Making it easier for them to access credit gives them more opportunities to employ Australians, upgrade their facilities and expand their operations,” she said.