I move:

That the following matter be referred to the Economics References Committee for inquiry and report by 22 February 2019:

Credit and financial services targeted at Australians at risk of financial hardship, with particular reference to:

(a) the impact on individuals, communities, and the broader financial system of the operations of:

  (i) payday lenders and consumer lease providers,

  (ii) unlicensed financial service providers including "buy now, pay later" providers and short-term credit providers, and

  (iii) debt management firms, debt negotiators, credit repair agencies and personal budgeting services;

(b) whether current regulation of these service providers meets community standards and expectations and whether reform is needed to address harm being caused to consumers;

(c) the present capacity and capability of the financial counselling sector to provide financial counselling services to financially stressed and distressed members of the community; and

(d) any other matters.

I seek leave to make a short statement.

Leave is granted for one minute.

The government recognises that small-amount credit lenders and consumer lease providers play an important role in the economy by providing credit to consumers who in many instances are unable to access mainstream forms of finance. The government has undertaken a review of the small-amount credit contract laws and is currently considering the review's recommendation. The government also notes the comments of Commissioner Hayne regarding the consumer credit industry in the interim report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The government would welcome any further scrutiny of the industry.

Question agreed to.