Maximum annual percentage rate—Act, s 63
3 Maximum annual percentage rate—Act, s 63
The prescribed maximum annual percentage rate is 48% per annum for all credit contracts to which the code applies.
Interest charges, and all credit fees and charges, under a credit contract must be included in working out the maximum annual percentage rate under all credit contracts to which the code applies.
The maximum annual percentage rate must be worked out in accordance with section 4.
Despite subsection (2), any credit fees or charges arising from the establishment or maintenance of a temporary credit facility are not required to be included for working out the maximum annual percentage rate if—
the credit provider is an authorised deposit-taking institution; and
the debtor has or had an existing credit contract or debit account with the authorised deposit-taking institution when the temporary credit facility is or was established; and
the temporary credit facility is related to the existing credit contract or debit account.
In this section:
temporary credit facility includes an overdraft facility and a short‑term extension of the total amount of credit available under an existing credit contract.
Note This section is made under the Act, s 63. The effect of a contravention of this section is set out in s 63. The maximum interest rate is not part of the uniform provisions of the code in Australia.
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