The manner in which the hardship threshold is determined has now changed to a “floating threshold” to reflect the current cost of new houses in the Australian property market.
These changes to the Regulations became effective from:
Prior to these changes to the Consumer Credit Code Regulations, the threshold for credit relief applications and stay of enforcement proceedings were set at $125,000. This meant that people with mortgages or other consumer loans of more than $125,000 were previously not eligible to apply for hardship relief or postponement of enforcement proceedings. This figure was originally set in 1996 and was generally recognised as not having kept pace with current home mortgages.
The threshold will now be a floating threshold linked to an Australian Bureau of Statistics (ABS) index of the cost of new houses in Sydney. The hardship threshold will be equal to 110% of the average loan size for the purchase of new dwellings in New South Wales (table 10(c) of catalogue 5609). This figure is released monthly by the ABS and set out in the Table of Housing Finance Commitments in the publication entitled Housing Finance Australia. Note that the figure released by the ABS is based on the most recent data, which is usually about 2 months previous.
The What's New section of this web-site will update the hardship threshold figure as it is released by the ABS.
The increase in the threshold from $125,000 to the current threshold takes into account the dramatic increase in house prices over the past eight years. The hardship threshold applies when a consumer cannot make loan repayments due to hardship, such as illness, unemployment or other reasonable cause, but could pay the debt if the terms of the contract were changed.
The following is the historical data on the hardship threshold:
12 May 2010 - 9 June 2010 |
$361,790 |
12 April 2010 - 12 May 2010 |
$336,270 |
10 March 2010 - 12 April 2010 |
$350,240 |
| 10 February 2010 - 10 March 2010 | $374,330 |
12 January 2010 - 10 February 2010 |
$354,530 |
10 December 2009 - 12 January 2010 |
$364,210 |
9 November 2009 - 10 December 2009 |
$364,210 |
10 October 2009 - 9 November 2009 |
$340,340 |
9 September 2009 - 10 October 2009 |
$342,320 |
10 August 2009 - 9 September 2009 |
$354,530 |
7 July 2009 - 10 August 2009 |
$335,500 |
10 June 2009 - 7 July 2009 |
$340,780 |
12 May 2009 - 9 June 2009 |
$317,350 |
8 April 2009 - 11 May 2009 |
$314,490 |
11 March 2009 - 7 April 2009 |
$320,650 |
11 February 2009 - 10 March 2009 |
$313,500 |
14 January 2009 – 10 February 2009 |
$336,160 |
10 December 2008 – 13 January 2009 |
$333,080 |
10 November – 9 December |
$325,600 |
8 October 2008 – 9 November 2008 |
$311,740 |
9 September 2008 – 8 October 2008 |
$332,750 |
9 August 2008 – 8 September 2008 |
$368,390 |
10 July 2008 - 8 August 2008 |
$336,050 |
11 June 2008 - 9 July 2008 |
$303,270 |
13 May 2008 - 10 June 2008 |
$306,350 |
15 April 2008 - 12 May 2008 |
$308,440 |
12 March 2008 - 14 April 2008 |
$336,380 |
12 February 2008 - 11 March 2008 |
$320,100 |
17 January 2008 - 11 February 2008 |
$327,470 |
11 December 2007 - 16 January 2008 |
$311,960 |
8 November 2007 - 10 December 2007 |
$308,880 |
11 October 2007 - 7 November 2007 |
$316,800 |
11 September 2007 - 10 October 2007 |
$341,660 |
9 August 2007 - 10 September 2007 |
$346,610 |
11 July 2007 - 8 August 2007 |
$322,410 |
9 June 2007 - 10 July 2007 |
$305,250 |
15 May 2007 - 8 June 2007 |
$315,810 |
12 April 2007 - 14 May 2007 |
$317,020 |
12 March 2007 - 11 April 2007 |
$301,400 |
10 February 2007 - 11 March 2007 |
$309,870 |
15 January 2007 - 9 February 2007 |
$310,860 |
9 December 2006 - 14 January 2007 |
$315,480 |
8 November 2006 - 8 December 2006 |
$298,210 |
11 October 2006 - 7 November 2006 |
$301,950 |
9 September 2006 - 10 October 2006 |
$325,270 |
10 August 2006 - 8 September 2006 |
$312,730 |
11 July 2006 - 9 August 2006 |
$328,020 |
6 June 2006 - 10 July 2006 |
$317,790 |
12 May 2006 - 5 June 2006 |
$323,840 |
7 April 2006 - 11 May 2006 |
$325,710 |
10 March 2006 - 6 April 2006 |
$319,990 |
14 February 2006 - 9 March 2006 |
$325,710 |
17 January 2006 - 13 February 2006 |
$330,330 |
6 December 2005 - 16 January 2006 |
$310,970 |
10 November 2005 - 5 December 2005 |
$325,270 |
10 October 2005 - 9 November 2005 |
$350,570 |
6 September 2005 - 9 October 2005 |
$342,540 |
11 August 2005 - 5 September 2005 |
$295,790 |
11 July 2005 - 10 August 2005 |
$305,910 |
8 June 2005 - 10 July 2005 |
$307,340 |
11 May 2005 - 7 June 2005 |
$303,820 |
11 April 2005 - 10 May 2005 |
$298,100 |
12 March 2005 - 10 April 2005 |
$323,290 |
11 February 2005 - 11 March 2005 |
$322,740 |
17 January 2005 - 10 February 2005 |
$330,080 |
11 December 2004 - 16 January 2005 |
$330,330 |
10 November 2004 - 10 December 2004 |
$340,670 |
5 November 2004 - 9 November 2004 |
$324,720 |
Download the Consumer Credit Amendment Regulation 2004 in PDF format (size: 190KB).
Disclaimer: The information provided in this web site is of a general nature only and does not replace the Code itself. You should obtain your own copy of the Code and seek independent legal advice if you believe you are affected by the Code.
The Government Consumer Agencies assume no responsibility or liability in relation to anyone acting in reliance on the information provided on or linked to this site.