What if a financial product is only incidental?
(1) If: (a) something (the incidental product) that, but for this section, would be a financial product because of this Subdivision is: (i) an incidental component of a facility that also has other components; or (ii) a facility that is incidental to one or more other facilities; and (b) it is reasonable to assume that the main purpose of: (i) if subparagraph (a)(i) applies—the facility referred to in that subparagraph, when considered as a whole; or (ii) if subparagraph (a)(ii) applies—the incidental product, and the other facilities referred to in that subparagraph, when considered as a whole; is not a financial product purpose; the incidental product is not a financial product because of this Subdivision (however, it may still be a financial product because of Subdivision C). (2) In this section: financial product purpose means a purpose of: (a) making a financial investment; or (b) managing financial risk; or (c) making non‑cash payments.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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