The Albanese Government is supporting small businesses to access credit when they need it.
Currently an exemption allows small businesses to access loans or credit without being assessed against the Responsible Lending Obligations (RLOs), so long as there is a genuine business purpose.
The Government is extending the RLO exemption, allowing small businesses to continue to have access to the credit they need, when they need it. Whether it be to hire more staff or upgrade facilities, the Albanese Government will always back small business owners to grow their companies which power the national economy.
The evidence suggests that the exemption is working well. It is beneficial for small businesses, enables streamlined access to credit, and there is no substantive evidence of harm.
Extending the exemption will provide an additional two years of data to inform any future decisions of Government. For the purposes of the exemption, a small business is one that has fewer than 100 employees or revenue of $5 million or less in the previous financial year.
The National Consumer Credit Protection Regulations 2010 (the Credit Regulations) which facilitates the exemption will be amended to extend the exemption for the two‑year period, ending 3 October 2026.
This decision goes to the heart of the Government's commitment to small business. Our Government knows small business is vital to a strong economy and we will always support them to thrive across our communities.
Comments attributable to Assistant Treasurer and Minister for Financial Services, Stephen Jones:
"This means more businesses can access the credit they need, when they need it."
"Small businesses are the beating heart of our economy. We'll always back small business to provide the goods and services our communities need.
"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."
Comments attributable to Minister for Small Business, Julie Collins:
"I know access to finance is a critical issue for small businesses which is why this extension is so important.
"This is just one way our Government is delivering for Australia's 2.5 million small businesses.
"Our Small Business Statement outlines more than $640 million in targeted supports for small businesses to ease pressure, support small businesses to grow, and level the playing field."
