National Consumer Credit Protection Act 2009

A small amount credit contract must not impose or provide for fees and charges if the fees and charges are not of the following kind:

a permitted establishment fee;

a fee or charge (a permitted monthly fee) that is payable on a monthly basis starting on the day the contract is entered into;

a fee or charge that is payable in the event of a default in payment under the contract;

a government fee, charge or duty payable in relation to the contract.

See section 39B for the maximum amount that may be recovered by the credit provider if there is a default in payment under the contract.

Despite subsection (1), a small amount credit contract must not impose or provide for a permitted establishment fee if any of the amount of credit to be provided under the contract is to refinance any of the amount of credit provided to the debtor under another small amount credit contract.

A permitted establishment fee is a fee or charge the amount of which must not exceed 20% of the adjusted credit amount in relation to the small amount credit contract.

The amount of a permitted monthly fee that may be imposed or provided for under a small amount credit contract must not exceed 4% of the adjusted credit amount in relation to the contract.