Credit activity is defined in s6 of the the National Credit Act and includes:
providing credit under a credit contract or consumer lease
benefiting from mortgages or guarantees relating to a credit contract
suggesting or assisting in relation to a particular credit contract or consumer lease
acting as an intermediary between a lender and a consumer (in relation to a credit contract) or between a lessor and a consumer (in relation to a consumer lease), and
you are authorised as a credit representative to engage in credit activities on behalf of the licensee
you are an employee or director of a licensee or one of its related bodies corporate
you are exempt from the licensing requirements or the type of credit activity you engage in is exempt under the National Credit Act or associated regulations, or
ASIC grants you relief from the requirement to hold a credit licence.
Certain categories of people and activities are exempt from the licensing requirement in certain circumstances, which are set out in the National Credit Regulations. Exemptions apply if you:
are a corporate or personal insolvency practitioner
are a lawyer
are a registered tax agent
are a point-of-sale retailer
are a financial counselling agency
are a third party
are a clerk or cashier
are a state-licensed debt collector, repossession agent
merely pass on factual information in response to a request, or
Debt collectors who are licensed under state or territory law, and who engage in activities such as demanding or receiving payment from borrowers under a credit contract on behalf of a licensee, are generally exempt from the National Credit Act.
Financial counselling agencies that engage in credit activity as part of a financial counselling service are exempt from the requirement to hold a credit licence.
Financial counsellors are agencies that provide free and independent financial counselling and advocacy services to people in financial difficulty. They're generally community based non-government organisations funded by government or community sector organisations such as welfare organisations.
Read:
Guidance for financial counsellors (INFO 112) for more information.
ASIC Class Order [CO 03/1063] Licensing relief for financial counselling agencies.
Book up is a common practice in many remote and regional communities of Australia that allows customers to buy goods or services and pay later. If you do this, you are providing a type of consumer credit.
Store owners and traders offering book up are likely to need a credit licence if they charge consumers for the book up. Charges might include interest or credit fees.
