Policy Update - October #2
Surcharging and Merchant Card Payment Costs Consultation
Following our updates earlier this week on the government's proposed debit surcharge ban and RBA's related review, we have set up a policy working group call for members to provide feedback on our submission to the RBA. Please register for the call here and see further details below.
Payment System Modernisation reforms
We have been closely tracking amendments to the the Payment Systems (Regulation) Act 1998, which has now passed the House of Representatives. The reforms, which are contained in a superannuation package bill, modernise the regulatory framework by expanding the definitions of "payment system" and "participant" to cover emerging players like BNPL and digital wallet providers. We will continue to track the progress of this bill as it moves through the Senate and keep you updated.
Buy Now Pay Later regulations
With Buy Now Pay Later reforms (contained in the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill) before the Senate, Treasury has been progressing accompanying draft regulations. FinTech Australia has met with Treasury to reiterate member concerns, initially canvassed in earlier consultation on the legislative package, on key aspects of the draft regulations including its proposed fee cap structure. We have requested further consultation on the regulations and will keep members updated.
Review of AI and the Australian Consumer Law
Treasury is consulting on its Review of AI and the Australian Consumer Law (ACL) and seeks input on whether current consumer laws are suitable to protect consumers who use AI, as well as support the responsible use of AI by businesses. This builds on previous consultations, including Mandatory Guardrails for High Risk AI which FinTech Australia recently made a submission on. FinTech Australia does not propose making a submission for this consultation, but please feel free to contact our policy team if this is of interest to you.
AUSTRAC Tranche 1 Industry Forum – Update
On 17 October 2024, FinTech Australia's policy team attended the AUSTRAC Tranche 1 Industry Forum. AUSTRAC outlined its consultation strategy on the AML/CTF Amendment Bill (Bill) and future AML/CTF Rules, with key takeaways including:
the Bill is expected to pass this year, with key implementation dates set for March and July 2026. The bill sets high-level principles, followed by detailed AML/CTF Rules and Guidance for implementation; and
Senate hearings on the bill are expected in late October 2024, with a final passage report due by mid-November 2024.
AUSTRAC is focused on simplifying the AML/CTF framework and will engage industry stakeholders through working groups to co-design guidance. If any members are interested in participating, please contact our policy team as AUSTRAC continues its engagement with us.
Cyber Security Legislative Package
On 9 October 2024, the Cyber Security Legislative Package was introduced in Parliament. The package is part of the 2023–2030 Australian Cyber Security Strategy and is currently under inquiry review by the Parliamentary Joint Committee on Intelligence and Security. If passed, these Bills will implement reforms indicated in the 2023-2030 Australian Cyber Security Strategy and the related Consultation Paper. FinTech Australia does not propose making a submission for this consultation, but please feel free to contact our policy team if this is of interest to you.
We are working on the following submission:
Surcharging and Merchant Card Payment Costs Consultation
As mentioned in our recent policy communications, the Federal Government has announced plans to ban debit card surcharges starting in 2026. The RBA has released an Issues Paper as part of its Review into Merchant Card Payment Costs and Surcharging, which seeks feedback on:
Whether current regulations on interchange and scheme fees continue to meet their objectives,
How greater transparency in fees could promote competition and reduce costs, and
Whether broader issues are impacting policies for card payments.
A policy discussion with our partners at K&L Gates will be held at 3:00 PM AEDT on Tuesday, 29 October 2024 as we prepare to make a submission before the due date on 3 December 2024. Please register via this link hereif you are interested.
We recently made submissions on:
Introducing Mandatory Guardrails for AI in High-risk Settings
CDR Rules: Consent and Operational Enhancement Amendments Consultation
See our recent submissions on our website.
FinTech Australia regularly makes submissions to consultations across a wide range of policy and regulatory issues. Communications about how to get involved in these processes are distributed to our Policy Working Group membership.
