The NCCP Act requires that businesses be licensed where they provide credit services for the purpose of personal, domestic or household use, or for the purchase, renovation or improvement of the value of a residential investment property. Credit provided for other purposes is excluded. The credit licensing regime covers individuals or businesses engaging in credit activities. These activities are referred to as ‘authorisations’ on the licence and are usually one of the below three:
This authorisation is required for services such as being a direct lender under credit contracts or acting as a lessor under a consumer lease.
This authorisation enables individuals or businesses to assist consumers in entering into a credit contract or consumer lease. It authorises services such as brokers, mortgage managers or aggregators and other intermediaries who manage a credit contract on behalf of a credit provider.
This authorisation covers individuals and businesses providing debt management assistance and/or credit reporting assistance.
An Australian Credit Licence is required for individuals or businesses that engage in any of the following:
There are exemptions from holding an Australian Credit Licence in certain circumstances for:
There are serious penalties and repercussions for operating without an Australian Credit Licence or without the correct authorisation. If it’s not clear whether you need an Australian Credit Licence or which authorisations are appropriate for your business, please contact Sophie Grace.
Sophie Grace’s General Manager, Alicia, introduces the Australian Credit Licence series with some general information on whether you need a licence.
General Manager
Sophie Grace can provide you with an AML/CTF Program and can assist you to tailor it to your business’ needs. We have three different options available to suit your business and finance needs.
You can purchase template documents from our online shop. The template is an instant download and includes prompts to help you tailor the document yourself. We have template documents for:
Sign up to the Compliance Portal and receive the template AML/CTF Program Package, and obtain access to updated documents in light of any updates we make as new guidance or amended legislation is released. Choose between:
Sophie Grace can assist you to prepare the AML/CTF Program package based on your business’ specific requirements. Contact us to discuss further.
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