The Finance Brokers Association of Australia (FBAA) has used a submission to a Treasury consultation on unfair trading practices to call out a range of lender behaviours it says are harming small business brokers.
The submission responds to a Treasury consultation on extending unfair trading practices protections to small businesses, which closed on 10 July.
The submission argues that clawback provisions, originally designed to prevent brokers being paid for misconduct or non-compliance, have shifted to being triggered by borrower conduct instead — behaviour FBAA CEO Leo Gagic (pictured) said is often justified by lenders on cost-recovery grounds he considers unfair and inequitable.
The association also took aim at net of offset provisions, describing their practical implementation as "shocking," and argued that slow commission payments run counter to the fairness principles underpinning the government's own Payment Times Reporting Act obligations.
The FBAA's submission raised concerns about lenders prioritising their direct channels at brokers' expense, pointing to internal staff poaching and refinancing broker-introduced deals, discount pricing offered only when customers refinance through a branch, and misleading claims to customers about how broker commissions affect their rates.
The association also renewed its objections to lenders paying unqualified referrers — such as accountants and lawyers — under introducer or referral arrangements, noting the Hayne royal commission had previously found such programs caused significant consumer harm.
FBAA further criticised lenders for cancelling broker accreditation over minor compliance issues, describing the practice as "repugnant behaviour" more focused on shifting business to direct channels than protecting consumers.
That tension between brokers and lenders is reflected in broader industry sentiment too. A recent industry survey found commission structure has become a more prominent factor in how brokers rate lenders in 2026, with the report noting growing concern about channel behaviour and rising sensitivity to fairness and transparency in the lender relationship.
Gagic said the broking sector is made up predominantly of small businesses whose livelihoods are closely tied to their relationships with credit providers.
"When managed appropriately, the lender-broker-consumer relationship is a mutually beneficial one, and this is the relationship we are seeking," he said.
Gagic said it was time to end anti-competitive and unfair commercial practices, framing the submission as a call for the government to help rebalance a relationship brokers say has increasingly tilted against them.
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