{"id":"F2018L01264","name":"ASIC Credit (Unsuitability—Credit Cards) Instrument 2018/753","slug":"asic-credit-unsuitability-credit-cards-instrument-2018-753","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439765,"registerId":"F2018L01264-fast-fetch-1775955660866","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Credit (Unsuitability—Credit Cards) Instrument 2018/753","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.jpeg)\n\nASIC Credit (Unsuitability—Credit Cards) Instrument 2018/753\n\nI, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate  28 August 2018\n\n \n\n \n\nGrant Moodie\n\n \n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc523228675)\n\n[1 Name of legislative instrument](#_Toc523228676)\n\n[2 Commencement](#_Toc523228677)\n\n[3 Authority](#_Toc523228678)\n\n[4 Definitions](#_Toc523228679)\n\n[Part 2—Determination](#_Toc523228680)\n\n[5 Period for determining unsuitability in respect of credit card contracts](#_Toc523228681)\n\n[Part 3—Transitional](#_Toc523228682)\n\n[6 Application](#_Toc523228683)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Credit (Unsuitability—Credit Cards) Instrument 2018/753.\n\n2 Commencement\n\nThis instrument commences on the later of:\n\n(a) 1 January 2019; and\n\n(b) 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 160F(1) of the National Consumer Credit Protection Act 2009.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the National Consumer Credit Protection Act 2009.\n\n\nPart 2—Determination\n\n5 Period for determining unsuitability in respect of credit card contracts\n\nA period of three years is determined for the purposes of the following provisions of the Act:\n\n(a) paragraph 118(3AA)(b);\n\n(b) paragraph 119(3A)(b);\n\n(c) paragraph 123(3AA)(b);\n\n(d) paragraph 124(3A)(b);\n\n(e) paragraph 131(3AA)(b);\n\n(f) paragraph 133(3AA)(b).  \n\n\nPart 3—Transitional\n\n6 Application\n\nThe determination in section 5 applies:\n\n(a) so far as the provision to which it relates applies in relation to entering a credit card contract—to credit card contracts entered into on or after 1 January 2019; and\n\n(b) so far as the provision to which it relates applies in relation to remaining in a credit card contract, or increasing the credit limit of a credit card contract:\n\n(i) to credit card contracts entered into on or after 1 January 2019; and\n\n(ii) to credit card contracts entered into before 1 January 2019.\n\n \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"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This instrument performs exactly the narrow, technical function it was designed for: setting a specific time period (3 years) for credit card unsuitability assessments under the National Consumer Credit Protection Act. It has not expanded beyond its original purpose."},"complexity_factors":["Extremely short: only 6 sections across 3 Parts","Only 1 defined term ('Act') in the interpretation section","Single operative provision (section 5) with a straightforward determination","No nested exceptions or conditional logic — just a flat 3-year period applied to 6 listed statutory provisions","Transitional provision (section 6) is simple and clearly bifurcated between new and existing contracts","No cross-references to other legislative instruments or complex interdependencies"],"plain_english_summary":"This instrument fixes a 3‑year look‑back for assessing whether a credit card is \"unsuitable\" for a customer, so lenders need only review the applicant’s financial circumstances from the prior three years. It affects banks and other card providers and consumers by limiting how far back affordability checks can reach, providing regulatory certainty while preserving recent‑history safeguards. It applies to new cards and continuing/increased limits from 1 January 2019."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":true,"description":"The instrument specifies a three‑year lookback period for unsuitability assessments where the Act delegated that determination to ASIC (section 5). It therefore narrows ambiguous temporal scope by prescribing a fixed period and clarifies transitional coverage for contracts before and after 1 January 2019 (section 6)."},"complexity_factors":["Narrow, single‑issue instrument: sets one clear temporal parameter (section 5).","Cross‑reference dependence: meaning and effect rely on multiple provisions of the Act that the instrument references.","Transitional application: covers both pre‑ and post‑1 Jan 2019 contracts (section 6), requiring firms to apply the period retrospectively in some cases.","Operational impact on lenders: requires changes to credit assessment, monitoring and recordkeeping practices when entering, remaining in, or increasing credit card limits."],"plain_english_summary":"This instrument fixes a three‑year period for determining whether a credit card contract is “unsuitable” under the National Consumer Credit Protection Act (see section 5). It affects credit providers and consumers by defining how far back ASIC’s unsuitability tests apply when issuing, continuing or increasing a credit limit. The rule applies to contracts entered before and after 1 January 2019 (see section 6), shifting compliance and recordkeeping obligations onto credit providers when assessing suitability."}},"importantCases":[],"_links":{"self":"/api/acts/asic-credit-unsuitability-credit-cards-instrument-2018-753","history":"/api/acts/asic-credit-unsuitability-credit-cards-instrument-2018-753/history","analysis":"/api/acts/asic-credit-unsuitability-credit-cards-instrument-2018-753/analysis","conflicts":"/api/acts/asic-credit-unsuitability-credit-cards-instrument-2018-753/conflicts","importantCases":"/api/acts/asic-credit-unsuitability-credit-cards-instrument-2018-753/important-cases","documents":"/api/acts/asic-credit-unsuitability-credit-cards-instrument-2018-753/documents"}}