Written byA medium amount credit contract (MACC) is a non-bank consumer credit contract for more than $2,000 and up to $5,000, running from 16 days to two years.
Also known as: MACC, MACC loan, medium amount loan
Key points
- MACCs sit inside the NCCP Act: the lender needs an Australian credit licence and full responsible lending obligations apply.
- They are typically unsecured personal loans over a term of up to two years, though they can be secured; the duties apply either way.
- A MACC is not capped like a small amount credit contract, but the National Credit Code still caps its establishment fee and annual cost.
- Borrowers can use hardship provisions, internal dispute resolution and AFCA if a lender falls short.
How a medium amount credit contract works
The category was created to capture mid-range loans that carry different consumer risks from both small amount credit contracts (SACCs) and larger personal loans. A MACC is a consumer credit contract from a lender that is not a bank or other authorised deposit-taking institution, for more than $2,000 and not more than $5,000, with a term of at least 16 days and no more than two years. It may be unsecured or secured against consumer assets, and the regulatory duties apply regardless, but a loan secured by a mortgage over real property falls outside the MACC category.
Before entering the contract the lender must make reasonable inquiries about the borrower's financial situation, objectives and needs, verify income, living expenses and existing liabilities, and assess that the loan is not unsuitable. It must provide the pre-contract disclosures the NCCP Act requires, including the key facts, the credit contract and a credit guide, and where the product is designated it must prepare and keep a target market determination.
How a MACC differs from other consumer loans
A SACC is for $2,000 or less over a short term, and comes with strict fee caps and extra short-term protections; payday-style cash loans are the common example. A MACC is more than $2,000 and up to $5,000, usually over up to two years, with full responsible lending duties. It is not capped the same way a SACC is, but the National Credit Code still caps the establishment fee and the total annual cost of the loan, so ask the lender for the total repayable. Larger personal loans, car loans and mortgages sit above $5,000, over longer terms, with the standard consumer credit disclosure rules.
If you are unsure which category a loan falls into, compare the amount against the thresholds and ask the lender to confirm the classification and whether a target market determination applies.
What it means for lenders and borrowers
Lenders should document every step: the affordability evidence they relied on (pay slips, bank statements), proof that disclosures were delivered, TMD records and distribution checks, complaints logs and hardship files. Common compliance failures are relying on unverified statements, cursory affordability checks, and ignoring red flags such as several concurrent short-term debts. ASIC has prioritised irresponsible lending, and enforcement outcomes range from remediation programs and enforceable undertakings to civil penalties and banning orders.
Borrowers should check the amount and term, read the disclosure for the total repayable and fees, ask what affordability checks were done, keep copies of everything, and request hardship assistance in writing early if repayments become difficult. If the lender's internal dispute resolution does not resolve a complaint, AFCA can decide remedies including refunds, compensation or contract variation.
Example
A broker arranges a $3,500 unsecured loan over 18 months for a customer who needs to replace a hot water system. The amount and term put it inside the MACC category, so the lender must complete full affordability checks, provide the pre-contract disclosures and keep evidence of the customer's financial position. If it relied only on the customer's own statements without any documents, the contract could be open to dispute. A few months later the customer falls ill and asks for a temporary variation in writing; the lender must have a hardship process and respond within a reasonable time with reasons.
Not to be confused with
- Small amount credit contract (SACC)
- a SACC is $2,000 or less over a short term with strict fee caps; a MACC is more than $2,000 and up to $5,000 over up to two years and is capped differently, with limits on the establishment fee and the total annual cost
- Personal loan
- a personal loan can be any size; the MACC label applies only when a consumer credit contract is for more than $2,000 and up to $5,000
- Payday loan
- a payday loan is usually a SACC of $2,000 or less over a short term; a MACC is larger and runs longer
Frequently asked questions
Is a payday loan a medium amount credit contract?
Typically no. Payday loans are usually small amount credit contracts of $2,000 or less over a short term, with their own fee caps. A MACC is larger, more than $2,000 and up to $5,000, and runs longer, usually up to two years. Both are regulated consumer credit with full responsible lending duties.
Can a MACC be rolled over?
Rolling a loan over can mask unaffordability. Any new or varied contract has to pass the lender's responsible lending assessment again and any changes must be disclosed. If the reason for rolling over is that repayments are hard to meet, a hardship arrangement is usually the more appropriate route, and you can request one in writing.
Are MACCs covered by responsible lending obligations?
Yes. A MACC is a consumer credit contract under the NCCP Act, so the lender must make reasonable inquiries, verify the borrower's financial situation and assess that the loan is not unsuitable. A broker arranging one must hold or operate under an Australian credit licence and follow the same rules.
What evidence helps if I want to contest a lender's suitability assessment?
Pay slips, bank statements, rental or mortgage statements, bills, copies of any existing loan contracts, all correspondence with the lender, and proof of any hardship requests you made. Ask the lender for a written explanation and copies of the documents it relied on, then use internal dispute resolution before escalating to AFCA.
Can AFCA order a refund for a MACC breach?
Yes. If a complaint is not resolved through the lender's internal dispute resolution, you can lodge it with AFCA, which can recommend or decide remedies including refunds, compensation or variation of the contract, depending on the facts and eligibility. Financial counsellors and community legal centres can help prepare the complaint.
Related terms
Small amount credit contract (SACC)
A small amount credit contract (SACC) is the statutory label for a small, short-term, unsecured consumer loan from a non-bank lender, typically a payday loan, with capped fees.
Read definitionPersonal loan
A personal loan is a fixed term loan for personal expenses, repaid in regular instalments over an agreed period, usually principal and interest.
Read definitionPayday loan
A payday loan is a small, unsecured loan meant to cover an immediate shortfall, usually repaid over a short term timed around your pay cycle.
Read definitionNCCP Act
The NCCP Act is Australia's National Consumer Credit Protection Act 2009, the law that licenses credit providers and brokers and sets responsible lending and disclosure rules for consumer credit.
Read definitionResponsible lending obligations
Responsible lending obligations are duties under the NCCP Act that require lenders and brokers to inquire into and verify a consumer's finances and not provide or suggest unsuitable credit.
Read definitionAustralian credit licence (ACL)
An Australian credit licence (ACL) is the authorisation from ASIC that a business needs to provide consumer credit or credit assistance under the National Consumer Credit Protection Act.
Read definitionGo deeper
Sources
This article is general information only and is not financial advice.