28LCASmall amount credit contracts—income requirements

#### 28LCA Small amount credit contracts—income requirements (1) For the purposes of subsection 133CC(1) of the Act, this regulation prescribes a requirement for repayments that would be required under a small amount credit contract with a consumer who would be the debtor under the contract. (2) The requirement for a repayment that would be required during a repayment period under such a contract with a consumer is that the sum of: (a) the amount of the repayment; and (b) any other amounts the consumer is required to pay under any other small amount credit contracts during the repayment period; would be equal to or less than 10% of the available income the consumer is reasonably expected to receive during the repayment period. (3) In this regulation: > available income, for a consumer, means the consumer’s income less any amount required to be withheld under Part 2‑5 in Schedule 1 to the Taxation Administration Act 1953 (Pay as you go (PAYG) withholding). > income means income within the ordinary meaning of that expression. > repayment period: each of the following is a repayment period in relation to a small amount credit contract: (a) the period: (i) starting on the day the contract is entered into; and (ii) ending on the first repayment date in relation to the contract; (b) a period: (i) starting on the day after a repayment date in relation to the contract; and (ii) ending on the subsequent repayment date in relation to the contract.