Financial hardship and inclusion

The Salvation Army provided a short submission to the Treasury consultation on draft legislation to strengthen anti-avoidance provisions for credit product intervention orders.

The Salvation Army encourages the passage of the draft Bill and welcomes the changes proposed in the exposure draft of the Treasury Laws Amendment (Measures for Consultation) Bill 2023 to maximise the powers of the Australian Securities and Investment Commission (ASIC) to prevent lenders providing unsuitable forms of lending.

In 2022, the Financial Sector Reform Act 2022 passed Parliament, creating several anti-avoidance measures to encourage compliance with the Credit Act. These are regulatory measures taken to restrict or prohibit the sale, distribution, or marketing of certain credit products in order to protect consumers from harm.

As a supplement to the Financial Sector Reform Act 2022, the Bill would introduce equivalent provisions regarding the prohibition to avoid relevant credit product intervention orders in the Corporations Act, better protecting individuals from unreasonable credit instruments and unmanageable debts.