Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

My question is to the Treasurer. It's been four years since the government commissioned a review of the small amount credit contract laws and 2½ years since the government accepted its recommendations. In these years, more and more Australians have fallen victim to excessive fees and interest of payday lenders—in many cases over 400 per cent. They are debt traps. When will the government introduce legislation to protect vulnerable Australians from severe financial harm?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Mayo for her question. The Assistant Treasurer may also want to add to this answer. Smaller amount credit contracts, which are available for between 16 days and 12 months for up to $2,000, are important for some people because those people are outside the mainstream financial opportunities that may be available. They may have an irregular income. There are some 2,000 plus providers of these small amount credit contracts. That being said, we did conduct a review, we did release exposure draft legislation, and we've been talking and consulting on the responses to that exposure draft legislation. As the honourable member would be aware, in February this year the Senate Economics References Committee reported back on issues in relation to financial products and services that may be targeted at people at risk. Again, that is being considered by the government. So it is an important issue that the member for Mayo raises. The Assistant Treasurer is working on that issue. I just want to point out that it's about getting the balance right, which is obviously ensuring consumer protection but also ensuring that there are credit opportunities for people who may be outside mainstream finance.