Policy Update - January #2

Buy Now Pay Later (BNPL) Credit Licensing

From 10 June 2025, BNPL providers must hold a credit licence under the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024. Transitional arrangements allow continued operations if applications are lodged and accepted by ASIC before the deadline. Early action is advised, as applications requiring additional information, such as criminal history checks, may take time. For more details, refer to ASIC’s Information Sheet 285: Buy Now Pay Later Credit Contracts: Credit Licensing.

Review of Tax Regulator Secrecy Exceptions

Treasury is consulting on proposed new secrecy exceptions for the Australian Taxation Office and Tax Practitioners Board. The consultation explores circumstances for appropriate disclosure and seeks input on enabling consumer consent through the Consumer Data Right, as outlined in Section 4.3.

FinTech Australia does not intend to make a submission; however, members interested in contributing are encouraged to contact our policy team. Consultations close on 28 February 2025, with expressions of interest for roundtables closing on 31 January 2025.

Positioning Australia’s financial reporting system for the future

Treasury is seeking feedback on a proposal to merge the Australian Accounting Standards Board, Auditing and Assurance Standards Board, and Financial Reporting Council into a single entity. The consultation, which closes 21 February 2025, focuses on areas such as structure, transparency, and the development of standards for accounting, sustainability, auditing, and assurance.

Expressions of interest for roundtables (held in Sydney, Melbourne, or online) are due by 5 February 2025. For further information or to participate, members can email to FRSReform@treasury.gov.au. FinTech Australia does not plan to make a submission; members interested in submitting are encouraged to reach out to our policy team.

Miscellaneous Amendments to Treasury Portfolio Laws

Treasury is seeking feedback on draft amendments aimed at addressing technical defects, anomalies, and unintended outcomes in Treasury laws. This consultation provides an opportunity to refine explanatory materials and ensure the legislation operates as intended.

FinTech Australia does not plan to make a submission, members interested in contributing are encouraged to contact our policy team. The consultation closes 31 January 2025.

ASIC consultations

ASIC is currently consulting on several proposals:

• Remake of Employee Incentive Scheme Instruments: Feedback is sought on combining two expiring Employee Incentive Scheme (EIS) class orders into a single legislative instrument. For more information,members can email rri.consultation@asic.gov.au. Submissions are due by 22 February 2025.

• Relief for Business Introduction Services: Input is invited on extending or reinstating conditional relief for fundraising under managed investment schemes. For further details, members can email IM.sunsettingconsultation@asic.gov.au. Submissions are due by 5 February 2025.

FinTech Australia does not plan to make submissions but encourages members interested in contributing to reach out to our policy team.

FinTech Australia meeting with RBA and Next Steps on Surcharging Review

Last week, we met the RBA’s Payments Policy Department to discuss our surcharging submission and discuss some key points in more detail.

Specifically, the RBA is also examining the role of commercial cards in interchange and surcharging regulation, focusing on the impacts of potential policy changes on commercial and foreign-issued cards.

We are now preparing additional background information to assist the RBA’s review and will reach out directly to impacted and relevant members. Members are encouraged to share feedback on the RBA’s follow-up questions (if any) by Monday, 3 February to our policy team.

Other News:

• Trans-Tasman eInvoicing Arrangement - Australia and New Zealand’s updated eInvoicing agreement promotes interoperability and efficiency across both countries. The program, managed by the ATO in Australia, aims to streamline transactions and enhance protections against scams.

• Leadership Appointment at ASIC - Scott Gregson has been appointed CEO of ASIC, effective 17 March 2025, succeeding interim CEO Greg Yanco. Gregson brings extensive regulatory expertise from a 30-year career with the ACCC.

We are working on these submissions:

• Public consultation on new AML/CTF Rules: FinTech Australia will make a submission and circulate a draft to our Policy Working Group to help shape our submission before the consultation closes on 14 February 2025.

• Consultation Paper 381 (CP 381): Updates to INFO 225: Digital Assets: Financial Products and Services: FinTech Australia will be making a submission and circulate a draft to our Policy Working Group to for further feedback before the consultation closes on 28 February 2025.

• 2025–26 Pre-Budget Submission: Thank you to all members who took the time to provide feedback. We are finalising incorporating this feedback and will lodge the submission before the 31 January deadline.

We recently made submissions on:

1. Review of Merchant Card Payment Costs and Surcharging - Issues Paper

2. Consumer Data Right Rules – Non-Bank Lending and Banking Data Scope Consultation

3. Scams Prevention Framework - Exposure Draft legislation

4. Introducing Mandatory Guardrails for AI in High-risk Settings

5. Senate Inquiry into Home Ownership

6. 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.