Credit (Rural Finance) Act 1996 - Queensland


The purpose of this Act is to provide some protection to farmers against the enforcement of mortgages over equipment they use to carry out their farming businesses.

This act applies to all persons, including the State and, so far as the legislative powers of the State permits, the Commonwealth and the other States.

However, this Act applies in relation to a mortgage only if the mortgagor (or, if there is more than one, each mortgagor) is an individual.

Part 2 of the Credit (Rural Finance) Act 1996 (as pertaining to Default Notices) does not apply in relation to a mortgage to which the National Credit Code in Schedule 1 of the National Consumer Credit Protection Act 2009 (Cwth) applies.

Further, the Credit (Rural Finance) Act 1996 does not apply in relation to a mortgage to which the repealed Credit Act 1987 applies as continued by section 15 of the Credit (Commonwealth Powers) Act 2010.

Service type

Regulatory Obligation

An obligation defined in law. A business must comply with relevant services.

Additional information

Farmers should contact their financial institutions if they have any queries about their rights and obligations under the Credit (Rural Finance) Act 1996.

Appeal process


Compliance mechanisms and penalties

If the mortgagor applies for a relieving order, the mortgagor must immediately give a copy of the application (a notice of application) to the mortgagee.

The court may order that the mortgagor is not required to comply with the above if the court is satisfied the mortgagor has unsuccessfully made all reasonable attempts to find the mortgagee.

The order may be made on conditions.

If the mortgagor gives a notice of application to the mortgagee, the mortgagee must not, until the court orders otherwise or the application is withdrawn or dismissed:

  • sell the equipment; or
  • if the mortgagee does not have possession of the equipment-take possession of the equipment; or
  • if the mortgagee has possession of the equipment-part with its possession (other than to return it to the mortgagor).

Maximum penalty is 500 penalty units.

To remove any doubt, it is declared that if the mortgagee has possession of the equipment when given a notice of application, the mortgagee is not required by subsection (1) (c) to return the equipment.

Review or appeal mechanisms

The mortgagee must not exercise, or purpose to exercise, the right, under a mortgage over farm equipment, to take possession of, or sell the equipment, unless:

  • the mortgagor has defaulted; and
  • the mortgagee has given the mortgagor, and guarantor (if any), written notice (a default notice) under this part (Part 2) for the default; and
  • the default has not been remedied by the due day stated in the default notice.

Maximum penalty is 500 penalty units.

Administering agency

Department of Justice and Attorney-General

Office of Fair Trading

Fair Trading Policy Branch

Contact details

Contact Email, Phone and Address Details for this service in simple two column table format, header then data.

Queensland Government Service Centre

Fair Trading Policy Branch

Office of Fair Trading

Department of Justice and Attorney-General

Operating address: Upper Plaza Terrace
33 Charlotte Street
Brisbane, Queensland 4000
Mailing address: GPO Box 3111
Brisbane, Queensland 4001
Phone: 13 QGOV (13 74 68)
Phone: 07 3405 0985
Website: Office of Fair Trading (Opens in new window)