Small Business Lending Reform Package postponed indefinitely

Following strong opposition by industry groups in relation to the small business lending reforms proposed as a part of the Credit Reforms Phase 2 package, the Minister for Financial Services and Superannuation, Bill Shorten has indicated that the proposed legislation in relation to small business lending will be postponed indefinitely.  It is expect that Treasury will announce the removal of the relevant provisions from the Credit Reforms Phase 2 draft bill shortly.

Other aspects of the Credit Reforms Phase 2 package, including investment lending, consumer leases, peer-to-peer lending and anti-avoidance will remain. Submissions are due by 1 March 2013.