Signing client declarations for loans

Content Summary

The provision of an accountant's letter or capacity to repay certificate are restricted activities for holders of an Australian credit licence (ACL) under the National Consumer Credit Protection Act 2009 (National Credit Act) or individuals authorised to provide consumer credit advice under an ACL.

Under the Act, signing a capacity to repay certificate or providing similar declarations may be a breach if you are not appropriately licensed.

If an accountant provides a declaration that a loan or lease is predominately for business purposes is, as far as CPA Australia can determine, this isn’t restricted by the National Credit Act.
However, an incorrect declaration may be deemed to be a false and therefore have legal ramifications that may affect your professional indemnity insurance.

CPA Australia therefore recommends that you don’t provide such declarations. 



This document provides guidance on accountant's letters, what assistance an unlicensed accountant can provide in the lending process and what activities are exempt under the National Credit Act.

Consumer credit reform
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This document provides guidance about the activities covered by the National Credit Act, and what services can be provided to a consumer without holding an Australian credit licence or being licensed as a credit representative.