Fees for credit licence and annual compliance certificate

This page shows you how to calculate:

  • the fee for an Australian credit licence (credit licence) application, and

  • the fee for the annual compliance certificate, which must be lodged by a credit licensee.

It also provides some example calculations of the fee applicable for the credit industry participants.

Discount for 'sole traders'

If you are a sole trader you will pay a reduced fee. A sole trader is:

  • a natural person, or

  • a person, other than a natural person (for example, a company) that has only one representative that engages in credit activities on its behalf.

If you have only one representative (e.g. a director) who engages in credit activities, and other people (e.g. employees) who engage in other sorts of conduct on your behalf, such as clerical work, you may be a sole trader.

'Representatives' include your employees and directors, employees and directors of related bodies corporate and credit representatives.

'Credit representatives' are people who are authorised under s64 or 65 of the National Consumer Credit Protection Act 2009 (National Credit Act) to engage in credit activities on your behalf.

How to calculate the fee

The National Consumer Credit Protection (Fees) Regulations 2010 (Fees Regulation’) prescribe the application fee for a credit licence. To determine both the credit licence application fee and the annual compliance certificate fee, you will need to add together:

  • the total amount of credit advanced by you in the preceding financial year

plus

  • the total amount of credit assigned to you in the preceding financial year (based on the face value of the debt, rather than the resale or purchased value)

plus

  • the total value of credit in applications submitted by you to credit providers and intermediaries in the preceding financial year that have resulted in a loan being made

plus

  • the total amount of rent payable by consumers under consumer leases entered into by you in the preceding financial year

plus

  • the total amount of rent payable by consumers under consumer leases submitted by you to lessors and intermediaries in the preceding financial year that have resulted in a consumer lease being made

Table 1 lists the fees for a credit licence and annual compliance certificate, based on the total of these amounts

Range of credit referred and advanced and the value of property rented to consumers in the previous financial year

Fee for online lodgement

Fee for paper lodgement

Less than $100 million and the applicant is a ‘sole trader’

$523

$654

Less than $100 million and the applicant is not a ‘sole trader’

$1,160

$1,450

$100 million or more but less than $200 million

$1,160

$1,450

$200 million or more but less than $600 million

$4,644

$5,805

$600 million or more but less than $1,000 million

$9,289

$11,611

$1,000 million or more but less than $1,400 million

$13,933

$17,416

$1,400 million or more but less than $1,800 million

$18,576

$23,220

$1,800 million or more but less than $2,100 million

$23,220

$29,025

$2,100 million or more

$24,384

$30,480

 

What to include in your calculation

You should only include amounts that relate to a provision of credit that is covered by the National Credit Act and National Credit Code. For example, if you have made loans to small business, which are not covered by the National Credit Code, you should not include those loans in your calculation. However, you will need to include loans to purchase, renovate or improve residential property for investment purposes.

Calculating the fee for a new ‘start-up’ business

If you did not provide credit or credit services in the financial year before the application is made (i.e. you will be operating a new ‘start-up’ business), the sum that you calculate will be zero. If this is the case, you will need to select the range of ‘Less than $100 million’.

Examples of fee calculations

Detailed below are examples of the fee applicable (for online lodgement) for credit industry participants based on:

  • whether or not they are a sole trader, and

  • the level of credit activities in the previous financial year.

Example 1: Individual broker, no representatives, sole trader

An individual operates as a mortgage broker and does not have any representatives engaging in credit activities on their behalf. They intend to apply for a credit licence in their own name. The broker submitted $40 million in loan applications that resulted in loans being made in the preceding financial year. The applicable fee is $523.

Example 2: Broker, company with one representative, sole trader

A company with two directors carries on a business as a mortgage broker, with one director (representative) engaging in credit activities. The company’s other director is employed to only engage in clerical tasks (and not credit activities). The company submitted $95 million in loan applications through their aggregator that resulted in loans being made in the preceding financial year. The applicable fee is $523.

Example 3: Broker, company with one representative, some ‘loans not made’, sole trader

A company with two directors carries on a business as a mortgage broker, with one director (representative) engaging in credit activities. The company’s other director is employed to only engage in clerical tasks (and not credit activities). The company submitted $110 million in loan applications through their aggregator. Of the total loan applications submitted, only $95 million resulted in loans being made in the preceding financial year. The applicable fee is $523.

Example 4: Micro-lender, company with one representative, sole trader

A micro-lender, operating as a company, employs one person being the director of the company to engage in credit activities. The company advanced credit totalling $3 million in the preceding financial year. The applicable fee is $523.

Example 5: Broker, company with more than one representative

A company carries on a business as a mortgage broker and submitted $80 million in loan applications that resulted in loans being made in the preceding financial year. The company also engages two credit representatives, who, between them, submitted $60 million in loan applications that resulted in loans being made in the preceding financial year. The applicable fee is $1,160.

Example 6: Broker, partnership with more than one representative

A partnership carries on a business as a mortgage broker. The two partners are employed by the partnership and engage in credit activities. The partnership submitted $75 million in loan applications through their aggregator that resulted in loans being made in the preceding financial year. The applicable fee is $1,160.

Example 7: Micro-lender, company with more than one representative

A company with one director carries on a business as a micro-lender and operates across a state through a network of five corporate representatives. The company through its representatives advanced credit totalling $18 million in the preceding financial year. The applicable fee is $1,160.

Example 8: Broker, company with more than one representative

A company carries on a business nationally as a mortgage broker. Through its principal business address, it submitted $50 million in loan applications that resulted in loans being made in the preceding financial year. Through its own offices in other states, the company submitted $100 million in loan applications that resulted in loans being made in the preceding financial year. The company also carries on a business through corporate credit representatives and other credit representatives working under the broker’s supervision. These credit representatives submitted $270 million in loan applications that resulted in loans being made in the preceding financial year. The applicable fee is $4,644.

Example 9: Aggregator, more than one representative

An aggregator’s representatives submitted $1.5 billion in loans through them that resulted in loans being made in the preceding financial year. The applicable fee is $18,576.

Example 10: Finance company, advanced credit and received rent from leases

A finance company advanced credit of $1 billion and also received total rent payable by consumers under leases of $200 million, together totalling $1.2 billion, in the preceding financial year. The applicable fee is $13,933.

Example 11: Debt purchaser

A debt purchasing company had assigned to it credit contracts with balances owing (debt) of $1 billion, as a result of purchasing those credit contracts for $100 million in the preceding financial year. The applicable fee is $13,933.

Discount if you are eligible for streamlining

If you are eligible to streamline, you will be charged at a reduced rate of 90% of the applicable credit licence fee. You are eligible for streamlining if you are an authorised deposit-taking institution (ADI), a ‘lenders mortgage insurer’ or a life insurer that lends in accordance with the terms and conditions of a life policy entered before 1 July 2010.

Your annual compliance certificate

The National Credit Act requires licensees to lodge an annual compliance certificate. This document must be lodged within 45 days of the anniversary of the granting of the credit licence. The fees for this certificate are listed in Table 1 above but do not include any discounts for streamlining. If an annual compliance certificate is lodged outside the 45-day lodgement period, late fees set in the Fee Regulations will be charged.

Where can I get more information?

This is Information Sheet 108 (INFO 108), reissued in July 2017. Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.

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Last updated: 20/10/2014 12:00