Hold-ups on loan shark law

Sunday Herald Sun - - Front Page - AN­NIKA SMETHURST

LOAN sharks who of­fer short­term loans at ex­or­bi­tant in­ter­est rates will con­tinue to op­er­ate un­reg­u­lated un­til at least 2020 be­cause the gov­ern­ment is ex­pected to miss its Christ­mas dead­line to limit their power.

Weeks be­fore he was rolled, for­mer prime min­is­ter Mal­colm Turnbull promised stalled laws, which would limit short-term loans to about 10 per cent of a cus­tomer’s net in­come, would be in­tro­duced be­fore the end of the year.

“Leg­is­la­tion will be pro­gressed this year, with the changes ap­ply­ing 12 months af­ter its pas­sage,” Mr Turnbull wrote in a let­ter seen by the Sun­day Her­ald Sun.

But gov­ern­ment sources say the tough new laws are un­likely to be in­tro­duced to par­lia­ment and pass both houses by the end of the year.

Trea­surer Josh Fry­den­berg first an­nounced a re­view of the pro­posed leg­is­la­tion in Au­gust 2015.

Since then the loan-shark crack­down has been the re­spon­si­bil­ity of five min­is­ters.

With only two sit­ting weeks left, La­bor MP Mil­ton Dick has again writ­ten to the Prime Min­is­ter over fears the laws will be de­layed.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.