{"id":"F2021L00750","name":"ASIC Credit (Mandatory Credit Reporting) Instrument 2021/541","slug":"asic-credit-mandatory-credit-reporting-instrument-2021-541","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440883,"registerId":"F2021L00750-fast-fetch-1775956350974","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Credit (Mandatory Credit Reporting) Instrument 2021/541","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Credit (Mandatory Credit Reporting) Instrument 2021/541\n\nI, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 11 June 2021\n\n \n\n \n\n \n\nAnthony Graham\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc74315046)\n\n[1 Name of legislative instrument](#_Toc74315047)\n\n[2 Commencement](#_Toc74315048)\n\n[3 Authority](#_Toc74315049)\n\n[4 Definitions](#_Toc74315050)\n\n[Part 2—Determination](#_Toc74315051)\n\n[5 Accounts that are not eligible credit accounts](#_Toc74315052)\n\n[Part 3—Repeal](#_Toc74315053)\n\n[6 Repeal](#_Toc74315054)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Credit (Mandatory Credit Reporting) Instrument 2021/541.\n\n2 Commencement\n\nThis instrument commences on the day after it is registered on the Federal Register of Legislation.\n\nNote: The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au).\n\n3 Authority\n\nThis instrument is made under subsection 133CO(2) of the National Consumer Credit Protection Act 2009.\n\n4 Definitions\n\nIn this instrument:\n\ncharge card contract has the same meaning as in subregulation 62(2) of the National Consumer Credit Protection Regulations 2010.\n\nconsumer credit has the same meaning as in subsection 6(1) of the Privacy Act 1988.\n\ndeposit product has the same meaning as in section 761A of the Corporations Act 2001.\n\nmargin lending facility has the same meaning as in section 761A of the Corporations Act 2001.\n\n \n\nPart 2—Determination\n\n5 Accounts that are not eligible credit accounts\n\nFor the purposes of paragraph 133CO(1)(c) of the National Consumer Credit Protection Act 2009, the following kinds of accounts are determined:\n\n(a) accounts that are margin lending facilities;\n\n(b) accounts that are deposit products and relate to the provision, or possible provision, of consumer credit if, in each case, the holder of the account has not expressly agreed to the provision, or possible provision, of the consumer credit;\n\n(c) accounts of a kind no longer offered by a credit provider that is a member a banking group if the number of those accounts held with the credit provider:\n\n(i) is less than 10,000; and\n\n(ii) is less than 3% of the total number of all the accounts held with the banking group that relate to the provision, or possible provision, of consumer credit;\n\n(d) accounts created to give effect to deeds of novation if, in each case:\n\n(i) the deed of novation is between an employee, employer and a credit provider at the time it was entered into, and involves the transfer of some or all of the rights and obligations under a lease; and\n\n(ii) the account is held by the employee;\n\n(e) accounts that provide for the provision of consumer credit under a charge card contract that is entered into by a credit provider that is specified in subregulation 62(1) of the National Consumer Credit Protection Regulations 2010.\n\nPart 3—Repeal\n\n6 Repeal\n\nThis instrument is repealed 5 years after the date it commences.\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"summary":{"content_quality":"ok","complexity_score":1,"scope_assessment":{"changed":false,"description":"This instrument does not amend the primary legislation; it only determines which accounts are not eligible credit accounts for mandatory credit reporting, clarifying the scope of existing obligations."},"complexity_factors":["The instrument merely lists specific account types that are excluded, with no complex legal tests.","Thresholds are clear-cut (fewer than 10,000 accounts or less than 3% of group accounts).","Definitions rely on standard terms from the Corporations Act 2001 and the National Consumer Credit Protection Regulations 2010."],"plain_english_summary":"This instrument narrows the mandatory credit‑reporting regime by excluding certain specified account types (for example, margin lending, some deposit products that only implicitly provide credit, certain legacy or novation arrangements, and some charge‑card contracts) from being “eligible credit accounts.” It therefore relieves large credit providers from reporting those accounts and means consumers’ activity in those products won’t appear in credit reports. The determination automatically repeals on 12 June 2026."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument performs exactly the narrow function suggested by its title: specifying which accounts are exempt from mandatory credit reporting. It has not expanded beyond this original purpose."},"complexity_factors":["Only 5 defined terms, all referencing external legislation rather than creating new definitions","Single operative provision (section 5) with 5 straightforward exemptions","Heavy reliance on external cross-references (National Consumer Credit Protection Act, Privacy Act, Corporations Act, and Regulations)","No nested conditions or exceptions to exceptions — each exemption is self-contained","Sunset clause (automatic repeal after 5 years) adds minimal complexity","Total length is approximately 1.5 pages"],"plain_english_summary":"This is a short technical rule made by Australia's corporate regulator, ASIC, that carves out five specific types of credit accounts from mandatory credit reporting rules.\n\n**What it does:**\nUnder Australia's credit reporting system, most banks and lenders must share information about your credit accounts with credit bureaus (like Equifax or Experian). This instrument says **five kinds of accounts don't have to be reported**:\n\n*   **Margin lending facilities** — loans used to buy shares or other investments\n*   **Deposit accounts with overdrafts** — bank accounts that *could* go into overdraft, but only if the customer never actually agreed to use that overdraft facility\n*   **Old, rare account types** — accounts no longer sold by a bank, where fewer than 10,000 exist and they make up less than 3% of the bank's total credit accounts\n*   **Novated lease accounts** — accounts created when an employee takes over a car lease from their employer (a common salary packaging arrangement)\n*   **Certain charge cards** — specifically, charge cards issued by providers named in another regulation (American Express and Diners Club, historically)\n\n**Who it affects:**\nBanks, credit unions, and other lenders who must report credit data, plus any Australians who hold these specific account types (they won't appear on credit reports).\n\n**Why it matters:**\nIt reduces red tape for lenders by exempting niche or complex products from reporting requirements, and protects consumers from having certain account types (like incidental overdraft facilities they never asked for) affect their credit history."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"This instrument narrows the set of accounts that fall within mandatory credit reporting obligations by specifying categories that are not \"eligible credit accounts\" (see s5). ASIC (by delegate) makes the determination under s133CO(2) (s3). Practically, credit providers and banking groups will report fewer account types (reducing their reporting obligations for the listed categories), while credit reporting bodies receive correspondingly less data. The exclusions are subject to definitional cross-references (s4) and expire after five years (s6), so the scope is time-limited and depends on external statutory meanings and quantitative tests in s5(c)."},"complexity_factors":["Delegated power and legal cross-reference: instrument is made under subsection 133CO(2) of the National Consumer Credit Protection Act (see s3), requiring users to read the Act alongside this instrument.","Multiple external definitions: key terms reference other statutes and regulations (Privacy Act definition of consumer credit; Corporations Act for deposit product and margin lending; National Consumer Credit Protection Regulations for charge card contract) (see s4).","Enumerated exclusions with conditional tests: section 5 sets distinct categories (a)–(e), each triggering different factual inquiries (e.g. whether an account is a margin lending facility (5(a)) or a charge card contract (5(e))).","Numeric threshold and group calculation: exclusion for legacy accounts depends on two quantitative criteria — fewer than 10,000 accounts and less than 3% of the banking group’s total relevant accounts — requiring data aggregation and percentage calculation (see s5(c)(i)–(ii)).","Evidential phrase requiring factual assessment: exclusion for deposit products depends on whether the account holder has \"expressly agreed\" to provision or possible provision of consumer credit, which may require documentation and judgement (see s5(b)).","Temporal limit on effect: instrument is automatically repealed five years after commencement, creating a time-bound regulatory scope that may require review or re-determination before expiry (see s6)."],"plain_english_summary":"This instrument lists specific kinds of accounts that are excluded from the definition of \"eligible credit accounts\" for mandatory credit reporting under the National Consumer Credit Protection Act. It changes which accounts credit providers and banking groups must report to credit reporting bodies. The exclusions include margin lending, certain deposit products without an express credit agreement, small legacy account pools, employee novation accounts, and specified charge-card contracts. The instrument automatically expires five years after commencement."}},"importantCases":[],"_links":{"self":"/api/acts/asic-credit-mandatory-credit-reporting-instrument-2021-541","history":"/api/acts/asic-credit-mandatory-credit-reporting-instrument-2021-541/history","analysis":"/api/acts/asic-credit-mandatory-credit-reporting-instrument-2021-541/analysis","conflicts":"/api/acts/asic-credit-mandatory-credit-reporting-instrument-2021-541/conflicts","importantCases":"/api/acts/asic-credit-mandatory-credit-reporting-instrument-2021-541/important-cases","documents":"/api/acts/asic-credit-mandatory-credit-reporting-instrument-2021-541/documents"}}