New banking Code of Practice levels SME playing field, but Ombudsman disappointed at $3 million loan threshold

SmartCompany, August 1, 2018

A newly minted Code of Practice soon to be adhered to by some of Australia’s biggest banks has been heralded as a win for small business in the roil of the banking royal commission, but concerns have been raised over the implementation of a $3 million threshold for what’s considered to be a small business loan.

The Code of Practice was released yesterday by the Australian Banking Association (ABA) and is the first code to be approved by Australia’s business regulator, the Australian Securities and Investments Commission (ASIC).

The code was rewritten in 2016-17, and given to ASIC for approval last year, with the watchdog officially signing off on the code this week. Liberal Democrat senator David Leyonhjelm said he had been assured the Coalition would try to convince crossbenchers to support its entire 10-year company tax-cut package, worth $65 billion. READ MORE: