{"id":"F1997B02219","name":"Trade Practices (Removal of Exceptions) Regulations","slug":"trade-practices-removal-of-exceptions-regulations","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"191 of 1975","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":29509,"registerId":"commonwealth-F1997B02219-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Trade Practices (Removal of Exceptions) Regulations","content":"![](image.001.png)\n\nTrade Practices (Removal of Exceptions) Regulations\n\nStatutory Rules 1975 No. 191 as amended\n\nmade under the\n\nTrade Practices Act 1974\n\nThis compilation was prepared on 26 May 2004 \ntaking into account amendments up to SR 1984 No. 230\n\nPrepared by the Office of Legislative Drafting, \nAttorney-General’s Department, Canberra\n\nContents\n\n1 Citation \\[see Note 1\\]\n\n2 Commencement\n\n3 Removal of exception — paragraph 51 (1) (b) of the Act\n\nNotes\n\n1 Citation \\[see Note 1\\]\n\nThese Regulations may be cited as the Trade Practices (Removal of Exceptions) Regulations.\n\n2 Commencement\n\nThese Regulations shall come into operation on 1 December 1975.\n\n3 Removal of exception — paragraph 51 (1) (b) of the Act\n\n(1) For the purposes of paragraph 51 (1) (b) of the Act, a requirement by a prescribed society that a borrower from the society shall cause insurance to be effected in a State with an insurer, or one of the insurers, specified, nominated or approved by the society shall not be disregarded in determining whether a contravention of a provision of Part IV of the Act has been committed.\n\n(2) A reference in this regulation to a prescribed society shall be read as a reference to a building society, co-operative society or credit union.\n\n(3) In this regulation:\n\n> building society means a society registered or incorporated as a building society, co-operative housing society or similar society under the law in force in a State or a Territory relating to such societies.\n\n> co-operative society means a society registered or incorporated as a co-operative society or similar society under the law in force in a State or a Territory relating to such societies.\n\n> credit union means a society or other body of persons:\n\n(a) that is registered or incorporated as a credit union or credit society under the law in force in a State or a Territory relating to credit unions or credit societies; or\n\n(b) the principal business of which consists of borrowing moneys from its members or intended members and lending those moneys to its members and which is incorporated under the law in force in a State or a Territory.\n\n> Notes to the Trade Practices (Removal of Exceptions) Regulations\n\n> Note 1\n\n> Note: The Trade Practices (Removal of Exceptions) Regulations (in force under the Trade Practices Act 1974) as shown in this compilation comprise Statutory Rules 1975 No. 191 amended as indicated in the Tables below.\n\n> Note: > Note: Table of Statutory Rules\n\n| Year andnumber | Date of notificationin Gazette | Date ofcommencement | Application, saving ortransitional provisions |\n| -------------- | ------------------------------ | ------------------- | --------------------------------------------- |\n| 1975 No. 191 | 1 Oct 1975 | 1 Dec 1975 | |\n| 1979 No. 61 | 11 Apr 1979 | 11 Apr 1979 | — |\n| 1981 No. 250 | 4 Sept 1981 | 4 Sept 1984 | — |\n| 1984 No. 230 | 12 Sept 1984 | 12 Sept 1984 | — |\n\n> Note: > Note: Table of Amendments\n\n```html\n

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted

Provision affected

How affected

R. 3.................

am. 1979 No. 61; 1981 No. 250; 1984 No. 230

\n```","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation maintains its original narrow purpose. It was always intended to remove a specific exception for certain financial institutions regarding insurance requirements, and the amendments over time (1979, 1981, 1984) merely refined which institutions were covered and how they were defined. The scope has not expanded beyond this targeted anti-avoidance measure."},"complexity_factors":["Very short — only 3 regulations total","Single substantive provision (Regulation 3) with straightforward purpose","Only 4 defined terms, all clearly explained in subsection (3)","No nested exceptions or complex conditional logic","Minimal cross-referencing — only refers to paragraph 51(1)(b) of the parent Act and Part IV of the Act","Simple structure: citation, commencement, and one operative provision with definitions"],"plain_english_summary":"This regulation removes a legal loophole that previously let certain financial institutions force borrowers to buy insurance from specific insurers.\n\n**What it does:**\nNormally, the Trade Practices Act bans anti-competitive behaviour like \"exclusive dealing\" — where a business forces customers to deal only with certain suppliers. However, paragraph 51(1)(b) of the Act created an exception where certain requirements could be \"disregarded\" (ignored) when deciding if someone broke competition laws.\n\nThis regulation **removes that exception** for building societies, co-operative societies, and credit unions. Specifically, if one of these institutions requires a borrower to take out insurance with a particular insurer (or one from an approved list), that requirement **can now be examined under competition law**.\n\n**Who it affects:**\n- **Building societies** — organisations that help people save for and buy homes\n- **Co-operative societies** — member-owned businesses operating for mutual benefit\n- **Credit unions** — member-owned financial cooperatives that take deposits and make loans\n- **Borrowers** from these institutions who are required to buy specific insurance\n\n**Why it matters:**\nBefore this regulation, these financial institutions could potentially lock borrowers into using their preferred insurance providers without worrying about competition laws. Now, such arrangements can be challenged as anti-competitive if they substantially lessen competition. This protects borrowers from being forced into potentially expensive or restrictive insurance deals and promotes fairer competition among insurers."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument is narrowly focused on removing an exception that previously operated in relation to insurer‑specifying requirements by prescribed societies. It does not broaden coverage beyond that original, specific purpose: it neither extends the rule to other types of contractual requirements nor creates new substantive offences. Accordingly, it has not grown significantly beyond its original, narrowly defined scope (see reg 3(1)–(3))."},"complexity_factors":["Very short instrument (three operative regulations plus definitions).","Single substantive provision (reg 3(1)) with two short definitional subsections (reg 3(2)–(3)).","Cross‑reference to external, substantive law (paragraph 51(1)(b) of the Trade Practices Act and Part IV) — requires readers to consult the Act for full effect.","One conditional phrasing (‘shall not be disregarded’) that alters legal treatment rather than creating a standalone rule.","Minor amendment history noted (amendments in 1979, 1981, 1984) but no complex transitional or savings provisions."],"plain_english_summary":"This regulation makes borrower insurance clauses—where a building society, co‑operative society or credit union requires insurance with an insurer it specifies, nominates or approves—count for the purposes of Part IV of the Trade Practices Act. \n\nIt means such clauses can be examined as potential anti‑competitive conduct, affecting those societies, their borrowers and insurers, and raising compliance, litigation and competition implications for contract drafting and insurer access."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/trade-practices-removal-of-exceptions-regulations","history":"/api/acts/trade-practices-removal-of-exceptions-regulations/history","analysis":"/api/acts/trade-practices-removal-of-exceptions-regulations/analysis","conflicts":"/api/acts/trade-practices-removal-of-exceptions-regulations/conflicts","importantCases":"/api/acts/trade-practices-removal-of-exceptions-regulations/important-cases","documents":"/api/acts/trade-practices-removal-of-exceptions-regulations/documents"}}