The NSW Opposition today introduced notice of a Bill to outlaw predatory cash loan machines in NSW.

The machines are popping up in many suburbs across the State and prey on struggling individuals and families doing it tough by offering “Small Amount Credit Contracts” that trap low income earners in vicious debt cycles.

The loans are described as “leases” to avoid caps on ordinary loan costs under national credit laws. Payday lenders can have comparison rates anywhere between 112% and 407%.

Instant cash loan machines target low income individuals and families with loans of between $50 -$1000. The limits increase when users access machines multiple times.

People can walk away with a loan of $1000 and only need to provide minimal information – phone number and internet banking details and a debit card.

Advocates, including the Financial Counsellors’ Association of NSW, are worried about the ease of access to these machines and the ready access to SACC’s, which includes apps on mobile phones.

Labor accused the Morrison and Berejkilian Governments of sitting on their hands and doing nothing to rid the State of these predacious machines.

Federal Labor introduced a Bill that to minimise harm of payday loan products at a Federal Level in February. Independent, Cathy McGowan MP, introduced the National Consumer Credit Protection Amendment (Small Amount Credit Contract and Consumer Lease Reforms) Bill 2018


Quotes attributable to Yasmin Catley, Shadow Minister for Innovation and Better Regulation

“Our national laws have not caught up to protect people from these insidious and unscrupulous practices.

“These predatory instant cash loan machines and payday loans (SACCs) avoid national credit laws and are popping up in many communities across NSW.

“Realistically, these machines cannot take into account the financial circumstances of customers, and lock people into loans with exorbitant fees.

“In the absence of national reforms, NSW Labor is committed to doing what it can and will rid the State of the scourge of these payday loan machines."


Quotes attributable to Jo Haylen, Member for Summer Hill

“These machines take advantage of people when they are most in need and there is no place for them in our community. 

"I'm proud of Labor for standing up to predatory loan sharks."


Instant cash loan machines are located in:

  • Berkley
  • Cessnock
  • Mount Hutton
  • Minto
  • Raymond Terrance
  • San Remo
  • Woy Woy
  • Wyoming