Last updated 13 September 2025

Some sellers lend money without charging interest if the debt is repaid by a specific date. Arrangements, such as store credit cards, buy-now-pay-later and installment plans, are often regulated as credit contracts.

Consumers borrowing money are generally protected by the National Credit Code (sch 1 National Consumer Credit Protection Act 2009 (Cth)).

The National Credit Code contains rules about how credit contracts and consumer leases should be entered into, the terms of the agreements and enforcement of agreements.

If the credit is interest free, then the National Credit Code will not apply unless:

  • the price of the goods is more than the market value
  • the interest-free period expires without payment being received in full and when the credit then attracts significant interest, fees and penalties that are calculated from the date the consumer entered the contract. Even a delay in payment of one day can trigger the imposition of substantial interest (for further information see the chapter on Consumer Credit and Banking).