Policy Update - November #1

Surcharging: Take our member survey on payments & surcharging

We’re inviting members involved in payments to respond to our brief survey on payments and surcharging. Aggregated insights from responses will help inform our submission on the RBA’s Review of Merchant Card Payment Costs & Surcharging. 

ASIC highlights AI governance gaps among licensees

ASIC recently released its report REP 798: Governance Arrangements in the Face of AI Innovation, reviewing how 23 AFS and credit licensees are adopting AI and managing risks, including in credit decisioning. Nearly half the licensees did not have policies in place that considered consumer fairness or bias. Although ASIC highlighted most licensees are using AI cautiously, often to support human decision-making, it also noted concerns that governance updates may not keep pace with AI adoption, creating potential gaps in risk management. Members looking to use AI in their businesses, particularly in credit decisioning, should consider the report findings and update their governance policies accordingly.

OAIC releases guidance on Privacy and AI in Australia

OAIC has issued two guidance notes addressing privacy in AI development and application. Their first guidance, "Guidance on privacy and developing and training generative AI models," advises that developers of generative AI should evaluate whether training data includes personal or sensitive information and ensure its use aligns with privacy obligations. The second guidance, "Guidance on privacy and the use of commercially available AI products," recommends that businesses using AI technologies clearly outline AI-related data practices in their privacy policies, among other considerations.

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 Paperas part of its Review into Merchant Card Payment Costs and Surcharging. You can help inform our response by taking a brief survey here.

We recently held our first consultation call and are preparing our draft submission. If you haven’t yet joined the consultation process and would like to be involved, please contact our policy team.

CDR news 

Earlier this week, Treasury’s Consumer Data Right Engagement team flagged that they expect to release the latest draft of CDR Rules for Non-Bank Lending in the next few weeks, with consultation responses due before Christmas. We’ll keep members updated.