Labor’s broker cop out gathers pace

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Via the AFR today:

Industry sources said one of Labor’s proposals was that the lender paid the broker a flat fee regardless of the size of the loan, rather than a fee that is a percentage of the loan.

This change would discourage brokers talking people into borrowing more than they need to increase the fee.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.