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NCCP Act 2009

National Consumer Credit Protection Act 2009 (Cth)

Last verified: 6 June 20263 amendmentsAct overview →

About this Act

Federal regulation of consumer credit. Establishes the Australian Credit Licence (ACL) regime, the National Credit Code (Schedule 1) and responsible lending obligations. Chapter 3 requires credit providers and brokers not to enter unsuitable credit contracts. From 10 June 2025, the regime catches Buy Now, Pay Later (BNPL) contracts as low-cost credit contracts with modified responsible lending rules.

Original Royal Assent
15 December 2009
Original commencement
Staged: 1 Apr 2010 (transitional licensing); 1 Jul 2010 (full ACL regime)
Administered by
ASICAFCA

Amendment timeline

Chronological list, oldest to newest. Each entry cites the legislation.gov.au compilation or as-made source and, where available, regulator guidance.

  1. National Consumer Credit Protection Amendment (Mortgage Brokers) Act 2019

    Royal Assent

    5 April 2019

    Commencement

    1 Jul 2020

    What changed

    Introduced the best interests duty for mortgage brokers (s 158LA), making the broker statutorily required to act in the consumer's best interests when providing credit assistance. Reformed mortgage broker remuneration — banned trail commissions on new loans after 1 January 2021 (subsequently reversed) and required broker remuneration to be transparent. Implemented Hayne Royal Commission recommendation 1.2.

    Who's affected

    All mortgage brokers and their authorised credit representatives; ADIs and other credit providers who deal with brokers.

  2. National Consumer Credit Protection Amendment (Small Amount Credit Contracts and Consumer Leases Reforms) Act 2022

    Royal Assent

    12 December 2022

    Commencement

    Staged from 12 Jun 2023

    What changed

    Implemented the SACC Review recommendations after years of delay. Introduced equal-instalment payment requirements for SACCs (payday loans), capped total fees at 10% of credit amount plus 4% per month, extended the protected earnings amount test, and imposed similar caps on consumer leases. Banned unsolicited consumer-credit offers and door-to-door SACC selling.

    Who's affected

    Payday lenders (SACC providers), consumer lease providers, debt management services.

  3. Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024

    Royal Assent

    10 December 2024

    Commencement

    BNPL provisions: 10 Jun 2025

    What changed

    Extended the National Credit Code to Buy Now, Pay Later contracts as a new class of 'low-cost credit contracts' (LCCCs). BNPL providers must now hold an ACL authorising credit-provider activity, but can opt for modified responsible lending obligations appropriate to product risk (lighter than full RLO if product caps are met). Caps on default fees, mandatory hardship procedures, and standard NCC disclosure rules apply.

    Who's affected

    BNPL providers (Afterpay, Zip, Klarna, Humm, PayPal Pay in 4, etc.); merchant acquirers; ASIC.

What's coming next

Responsible lending reform attempts — the Coalition Government's 2020 proposal to remove the RLO framework entirely was withdrawn after the 2022 election. No current proposal to weaken RLOs. Buy Now Pay Later Rules under the 2024 Act are still being finalised by ASIC (Information Sheet 285 updated April 2026). National Credit Code modernisation is in early-stage Treasury consultation focusing on disclosure simplification.

Why this matters now

BNPL providers now need an ACL and a credit-licensing build by 10 June 2025 — many providers continued to operate under the unregulated exemption right up to commencement, with a regulatory cliff. Mortgage brokers continue to operate under the best interests duty — ASIC has prioritised BID surveillance for 2025-26. And the SACC/consumer-lease caps continue to drive payday-lender exits from the Australian market.

Frequently asked

Does BNPL need a credit licence now?

Yes — from 10 June 2025, every BNPL provider must hold an Australian Credit Licence authorising it to engage in credit-provider activity. Existing BNPL providers had a transition period; new entrants must be licensed from day one. Modified RLOs apply to low-cost credit contracts.

What's a 'low-cost credit contract'?

A consumer credit contract that meets prescribed caps on fees and charges (currently: maximum charges and a fee cap formula set in regulations). LCCC providers can elect modified responsible lending obligations rather than full RLO compliance — fitting the lower risk profile of low-amount, short-term credit.

What's the mortgage broker best interests duty?

Section 158LA NCCP Act: a credit licensee or representative providing credit assistance to a consumer in relation to a credit contract must act in the best interests of the consumer in relation to the credit assistance. Civil penalty maximum: 5,000 penalty units ($1.65M for individuals, 10x for body corporates).

Are RLOs going to be wound back?

Not currently. The 2020 Coalition Government proposed Bill (Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 — RLO repeal) was withdrawn. The current Government has repeatedly affirmed support for the RLO framework. ASIC RG 209 continues to apply.

What's the SACC fee cap?

A Small Amount Credit Contract (≤ $2,000, ≤ 1 year): maximum 20% establishment fee, 4% monthly fee, no interest. The 2022 reforms also added an equal-instalment payment requirement, a protected earnings amount test (10% of net income), and banned door-to-door selling and unsolicited offers.

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Rules Mate summarises and links to legislation.gov.au and regulator guidance. We do not republish statutory text. Every date in this timeline has been verified against the Federal Register of Legislation as at 6 June 2026. Always verify against the live source before acting. Compliance tools, not legal advice. Consult a qualified professional.