Policy Update - December #1
New laws passed in Parliament's last sitting for the year
The final Federal Parliamentary sitting day for the year last Thursday saw an impressive 31 bills passed. Several of these were the subject of submissions by FinTech Australia and our members:
Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 (you can read our statement here);
Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024;
Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024;
Privacy and Other Legislation Amendment Bill 2024.
Our next priority will be consulting with members on the regulations supporting these new laws and assessing their impacts.
ASIC invites feedback on updates to Digital Asset guidance through Information Sheet 225
ASIC has opened a consultation on Consultation Paper 381 (CP 381): Updates to INFO 225: Digital Assets: Financial Products and Services, which proposes updates to its guidance on how the current law applies to digital assets and related financial products.
FinTech Australia will make a submission. We will circulate further information to our Policy Working Group and invite any interested parties to contact our policy team about contributing to our submission. The closing date for submissions is 28 February 2025.
Crypto Asset Reporting Framework and related amendments
The Treasury has released a consultation paper on the implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS). The new rules are broad and will capture entities that are not currently subject to CRS including those dealing with alternative financial products.
As this is a tax-related consultation, FinTech Australia does not intend to make a submission. However, members operating in the crypto asset space are encouraged to review the paper and consider submitting feedback. Submissions close on 24 January 2025.
Federal Government to Eliminate Debit Card Surcharges for Government Services
The Government has announced that effective 1 January 2025, debit card payment surcharges will no longer apply to frontline government services at the Australian Taxation Office (ATO) and Services Australia.
To support this change, the Commonwealth Entities (Payment Surcharges) Bill 2024 and related legislation have been introduced to ensure that any surcharges collected by Commonwealth entities are appropriately authorised by law where necessary. This announcement comes as the Reserve Bank of Australia (RBA) continues its important work on the Surcharging Review.
Other news
The Government has releasedthe independent Review of Australia’s Credit Reporting Framework Final Report, with 37 recommendations aimed at enhancing the framework's overall operation. Relevant for our members, one of these recommendations is that the concept of a ‘soft enquiry’ be elevated to the primary legislation to provide a clear legal foundation and a consistent approach across the industry. We expect this will inform OAIC's further assessment of the Credit Reporting Code in 2025.
Earlier this week the Government announced the details of a strategic review of Australia's R&D system. The review will focus on key opportunities such as driving greater R&D investment and strengthening links between research and industry. We expect to consult with the Review next year, with findings due by end of 2025.
The Senate Economics References Committee has tabled its Report on the Financial Regulatory Framework and Home Ownership Inquiry, following a submission by FinTech Australia in September. We were pleased to see the Report's recommendation to consult on modernising the Banking Code of Practice to facilitate lending in co-ownership scenarios, following a push from FinTech Australia and its members to better facilitate growing interest in less traditional co-ownership models.
FinTech Australia this week attended theDepartment of Finance's information session on the Digital ID Act 2024, which took effect on 1 December 2024. The Australian Government Digital ID System (AGDIS) will begin to expand to include more government services offering to use a Digital ID and, over time, a greater choice of Digital ID providers. Private sector entities will be able to apply to participate with the AGDIS by December 2026.
We are working on these submissions:
RBA Review of Merchant Card Payment Costs and Surcharging Consultation. We have circulated a draft for member comment and have an extension to incorporate research findings. We will share the final draft with members before submitting next week, so please reach out with any questions.
Consumer Data Right Rules – Non-Bank Lending and Banking Data Scope Consultation. FinTech Australia will be making a submission and will host a working group discussion this Thursday at 12:00 pm (AEST).
2025–26 Pre-Budget Submission: We will host a kick-off call with working group members in January to help shape our recommendations for budget priorities. Invitations for the kick-off call will be sent in the next few weeks.
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.
