Today, the National Consumer Credit Protection Amendment Bill 2010 was passed by the Australian Parliament.
The Bill provides the flexibility sought by the States to enable them to refer their powers for consumer credit regulation to the Commonwealth. Following enactment of the State Referral Bills, the States will be able to repeal their state laws in time for the commencement of the National Credit legislation on 1 July 2010.
"The passage of the National Consumer Credit Protection Amendment Bill brings Australia closer to having a single, standard national credit regulatory regime – and it can only be achieved through the strong commitment by the Commonwealth, State and Territory Governments working in a spirit of cooperation to deliver the COAG reform vision for a single, uniform national credit law," Mr Bowen said.
"I wish to thank my State and Territory colleagues for their commitment to this important reform in the last year and I look forward to their continuing support as we embark on Phase Two of the COAG credit reform."
In response to State concerns raised in December last year, the Commonwealth and State Governments agreed to modify the terms of the amendment power in the Referral Bills (the Bills to be enacted by the States to refer power to the Commonwealth) to allow certain subject matters (such as State taxation) to be excluded from the scope of the amendment power.
To give effect to that agreement, this Bill amends the National Consumer Credit Protection Act 2009 to enable an effective reference of State power to be made either with or without exclusions to that power; and to allow the States to refer their regulatory powers in relation to consumer credit by 'adopting' the Commonwealth's legislation and referring an amendment power.
Further information regarding the Reform Package is available at www.treasury.gov.au/consumercredit.
25 February 2010