Competition and Consumer (Price Inquiry—Home Loans) Instrument 2019
The Australian Competition and Consumer Commission makes the following notifiable instrument.
Dated this 19 day of November 2019
Rayne de Gruchy
Chief Operating Officer
Contents
Part 1—Preliminary
1 Name
2 Commencement of this instrument
3 Authority
4 Definitions
Part 2—Price inquiry into the supply of home loans
5 Notice of holding inquiry
6 Commencement of inquiry
1 Name
This instrument is the Competition and Consumer (Price Inquiry—Home Loans) Instrument 2019.
2 Commencement of this instrument
This instrument commences on the day after registration on the Federal Register of Legislation.
3 Authority
This instrument is made under section 95L of the Competition and Consumer Act 2010.
4 Definitions
Note: Expressions have the same meaning in this instrument as in the Competition and Consumer Act 2010 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
In this instrument:
Australian credit licensee has the meaning given by the National Consumer Credit Protection Act 2009.
authorised deposit-taking institution has the meaning given by the Banking Act 1959.
exempt supply has the meaning given by subsection 95A(1) of the Act.
goods has the meaning given by subsection 95A(1) of the Act.
home loan means a loan secured by a mortgage over one or more residential premises.
inquiry has the meaning given by subsection 95A(1) of the Act.
residential premises has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
services has the meaning given by subsection 95A(1) of the Act.
State or Territory authority has the meaning given by subsection 95A(1) of the Act.
supply has the meaning given by subsection 95A(1) of the Act.
the Act means the Competition and Consumer Act 2010.
the Commission means the Australian Competition and Consumer Commission.
Part 2—Price inquiry into the supply of home loans
5 Notice of holding inquiry
- The Commission is to hold an inquiry into the market for the supply of home loans, pursuant to the Competition and Consumer (Price Inquiry—Home Loans) Direction 2019.
- The Commission is to hold an inquiry into the market for the supply of home loans. The inquiry is not to extend to any of the following:
(a) the supply of a good or service by a State or Territory authority;
(b) the supply of a good or service that is an exempt supply;
(c) the conduct of the Australian Prudential Regulation Authority or the Australian Securities and Investments Commission;
(d) the conduct of a mortgage broker.
Note: The matters referred to in paragraphs (c) and (d) fall within scope of other inquiries.
- The inquiry is to be held in relation to goods and services of the following descriptions:
(a) home loans supplied by authorised deposit‑taking institutions;
(b) home loans supplied by Australian credit licensees;
(c) home loans supplied by a person who would be covered by paragraph (a) or (b) apart from an exemption in force under the Banking Act 1959 or the National Consumer Credit Protection Act 2009.
(4) The inquiry is not to be held in relation to the supply of goods and services by a particular person or persons.
6 Commencement of inquiry
The commencement date of the inquiry is 16 October 2019.
Overview
The Competition and Consumer (Price Inquiry—Home Loans) Instrument 2019 was enacted to address the need for a comprehensive investigation into the market dynamics and pricing of home loans in Australia. This instrument was created under the authority of section 95L of the Competition and Consumer Act 2010, with the objective of enabling the Australian Competition and Consumer Commission (ACCC) to conduct an inquiry into the supply of home loans, excluding certain specified areas and entities. This initiative aims to enhance transparency and competition within the home loan market, ensuring that consumers receive fair and competitive pricing for home loans. The instrument excludes the supply of goods or services by state or territory authorities, exempt supplies, and the conduct of specific regulatory bodies, focusing instead on authorised deposit-taking institutions and Australian credit licensees. The inquiry's commencement date was set for 16 October 2019, following the instrument's registration on the Federal Register of Legislation.
Scope and Application
The Competition and Consumer (Price Inquiry—Home Loans) Instrument 2019 applies to the market for the supply of home loans within the jurisdiction of Australia. This notifiable instrument is made by the Australian Competition and Consumer Commission under section 95L of the Competition and Consumer Act 2010. It is designed to specifically target the conduct and transactions of authorised deposit-taking institutions and Australian credit licensees in the supply of home loans. The instrument does not apply to the supply of goods or services by State or Territory authorities, exempt supplies, or the conduct of the Australian Prudential Regulation Authority or the Australian Securities and Investments Commission, nor does it apply to the conduct of mortgage brokers. The instrument excludes certain persons and does not target the supply of goods and services by any particular individual or entity. The inquiry into the home loan market is set to commence on 16 October 2019 and will be conducted in accordance with the Competition and Consumer (Price Inquiry—Home Loans) Direction 2019.
Key Provisions
The Competition and Consumer (Price Inquiry—Home Loans) Instrument 2019 (sections 1-4) provides the foundational framework for the inquiry into the market for the supply of home loans. It commences the day after its registration on the Federal Register of Legislation (section 2) and is made under section 95L of the Competition and Consumer Act 2010 (section 3). Definitions integral to the instrument, such as 'home loan' and 'authorised deposit-taking institution', align with those in the Competition and Consumer Act 2010 and other related acts (section 4).
The Act imposes specific obligations on the Australian Competition and Consumer Commission (ACCC), mandating that it hold an inquiry into the market for the supply of home loans (section 5). This inquiry must exclude certain areas, such as the conduct of mortgage brokers, the supply by State or Territory authorities, and exempt supplies (section 5(2)). The focus of the inquiry is to examine home loans supplied by authorised deposit-taking institutions, Australian credit licensees, and those exempted from certain banking or credit regulations (section 5(3)). Notably, the inquiry is not to target specific persons or entities but rather the broader market dynamics (section 5(4)).
The commencement of the inquiry is set for 16 October 2019 (section 6). This date signifies when the ACCC must begin its investigation, ensuring timely and structured data collection and analysis regarding home loan pricing and market conditions.
In terms of consequences, the legislation does not explicitly detail offences or penalties for breaches. However, non-compliance with the ACCC's inquiries can lead to broader legal implications under the Competition and Consumer Act 2010, including fines and corrective actions mandated by the Commission. While the specific maximum penalties are not stated in this instrument, they can be found in the overarching Competition and Consumer Act 2010, which provides for substantial financial penalties and potential legal actions for non-compliance.