Hardship threshold

When you can claim hardship

If you are finding it hard to meet your loan repayments (for example, because of illness, unemployment or changed financial circumstances), you can apply to your lender for a 'hardship variation' which changes the terms of your loan. See how to apply for a hardship variation.

If you entered into a credit contract before March 2013, your credit provider must consider your hardship application if the amount that you borrowed is less than the threshold (maximum amount allowed) that applied on the date you signed your credit contract. These thresholds are listed below.

Check the date you signed your credit contract to see if the threshold is less than the amount you borrowed. Even if your loan is above the threshold your credit provider might still agree to vary the contract.

If your credit provider refuses your hardship application, they must give reasons. If you are not happy with their response, you can ask to speak to their internal complaints section.

If you are still not satisfied with the outcome, you can lodge a dispute (for free) with your credit provider's external dispute resolution (EDR) scheme - either the Financial Ombudsman Service (FOS) 1300 780 808 or the Credit Ombudsman Service Limited (COSL) 1800 138 422.

From March 2013

If you entered into a credit contract on or after March 2013, you can apply for a hardship variation whatever the value of your loan.

July 2010 - February 2013

If you entered into a credit contract between July 2010 and February 2013, you can apply for a hardship variation if you borrowed $500,000 or less.

If you entered into a credit contract before July 2010, see the tables below and note that they only apply to contracts entered into in:

  • New South Wales, ACT, Victoria, Queensland, South Australia and the Northern Territory
  • Tasmania from 20 July 2005
  • Western Australia from 31 December 2004

January - June 2010

Date Amount
9 June 2010 - 30 June 2010 $357,830
12 May 2010 - 9 June 2010 $361,790
12 April 2010 - 12 May 2010 $336,270
10 March 2010 - 12 April 2010 $350,240
10 February - 10 March 2010 $374,330
12 January 2010 - 10 February 2010 $354,530

2009

Date Amount
10 December 2009 - 12 January 2010 $364,210
9 November 2009 - 10 December 2009 $364,210
10 October 2009 - 9 November 2009 $340,340
9 September 2009 - 10 October 2009 $342,320
10 August 2009 - 9 September 2009 $354,530
7 July 2009 - 10 August 2009 $335,500
10 June 2009 - 7 July 2009 $340,780
12 May 2009 - 9 June 2009 $317,350
8 April 2009 - 11 May 2009 $314,490
11 March 2009 - 7 April 2009 $320,650
11 February 2009 - 10 March 2009 $313,500
14 January 2009 - 10 February 2009 $336,160

2008

Date Amount
10 December 2008 - 13 January 2009 $333,080
10 November 2008 - 9 December 2008 $325,600
8 October 2008 - 9 November 2008 $311,740
9 September 2008 - 8 October 2008 $332,750
9 August 2008 - 8 September 2008 $368,390
10 July 2008 - 8 August 2008 $336,050
11 June 2008 - 9 July 2008 $303,270
13 May 2008 - 10 June 2008 $306,350
15 April 2008 - 12 May 2008 $308,440
12 March 2008 - 14 April 2008 $336,380
12 February 2008 - 11 March 2008 $320,100
17 January 2008 - 11 February 2008 $327,470

2007

Date Amount
11 December 2007 - 16 January 2008 $311,960
8 November 2007 - 10 December 2007 $308,880
11 October 2007 - 7 November 2007 $316,800
11 September 2007 - 10 October 2007 $341,660
9 August 2007 - 10 September 2007 $346,610
11 July 2007 - 8 August 2007 $322,410
9 June 2007 - 10 July 2007 $305,250
15 May 2007 - 8 June 2007 $315,810
12 April 2007 - 14 May 2007 $317,020
12 March 2007 - 11 April 2007 $301,400
10 February 2007 - 11 March 2007 $309,870
15 January 2007 - 9 February 2007 $310,860

2006

Date Amount
9 December 2006 - 14 January 2007 $315,480
8 November 2006 - 8 December 2006 $298,210
11 October 2006 - 7 November 2006 $301,950
9 September 2006 - 10 October 2006 $325,270
10 August 2006 - 8 September 2006 $312,730
11 July 2006 - 9 August 2006 $328,020
6 June 2006 - 10 July 2006 $317,790
12 May 2006 - 5 June 2006 $323,840
7 April 2006 - 11 May 2006 $325,710
10 March 2006 - 6 April 2006 $319,990
14 February 2006 - 9 March 2006 $325,710
17 January 2006 - 13 February 2006 $330,330

November 2004 - December 2005

Date Amount
6 December 2005 - 16 January 2006 $310,970
10 November 2005 - 5 December 2005 $325,270
10 October 2005 - 9 November 2005 $350,570
6 September 2005 - 9 October 2005 $342,540
11 August 2005 - 5 September 2005 $295,790
11 July 2005 - 10 August 2005 $305,910
8 June 2005 - 10 July 2005 $307,340
11 May 2005 - 7 June 2005 $303,820
11 April 2005 - 10 May 2005 $298,100
12 March 2005 - 10 April 2005 $323,290
11 February 2005 - 11 March 2005 $322,740
17 January 2005 - 10 February 2005 $330,080
11 December 2004 - 16 January 2005 $330,330
10 November 2004 - 10 December 2004 $340,670
5 November 2004 - 9 November 2004 $324,720

Before 4 November 2004

A threshold of $125,000 applies to credit contracts entered into on or before 4 November 2004 in all states and territories.

Seek financial counselling if you need help applying for a hardship variation. 


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Last updated: 17 Oct 2013

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