Hardship threshold
If you are struggling with your loan repayments you can ask your lender for a hardship variation to make your loan more manageable. A hardship variation is a change to the terms of the loan, based on financial hardship. ASIC’s Moneysmart website provides guidance on how to approach your lender if you are struggling with your debts.
If you got your loan before March 2013, your lender must consider your hardship application if you borrowed less than the hardship threshold on the date you signed the contract.
Hardship thresholds from before 2004 until today are listed below; however, even if your loan is above the threshold your credit provider may still agree to vary the contract.
Hardship thresholds by date
From March 2013 to today
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 to 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 but remember that they only apply to contracts entered into in:
- New South Wales, ACT, Victoria, Queensland, South Australia, the Northern Territory and Tasmania from 20 July 2005
- Western Australia from 31 December 2004
January to 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 to 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.
What to do if your hardship application is refused
If your lender refuses your hardship application, they must give reasons. If you are not happy with their response, you can complain directly to the lender or to the Australian Financial Complaints Authority (AFCA).