Luxurious Items
This clause is a parent heading. Its detail is set out across the 7 sub-clauses below:
NDRC Practice NoteLast reviewed 2026-04
The luxurious items test is how the rules separate essentials from items the consumer should consider giving up before asking creditors to take a haircut. The assessment compares lifestyle expenditure against the household's true income capacity.
Vehicles are the most contested category. A car worth more than the consumer's monthly income makes proposals harder to defend. We discuss downsizing openly with clients before submitting, because a creditor that successfully argues a luxury item can collapse the entire proposal.
Credit providers will flag luxury items in their counter-proposal. The negotiation usually centres on whether the item is genuinely the only means of transport, the only family home, or whether a sensible alternative exists.
Drawn from NDRC's active case work. For your situation, see our debt counselling overview.
Cite this clause
National Credit Regulator. (2015). Annexure B — Debt Review Assessment Guidelines, clause 7.3: Luxurious Items. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 44.