The Albanese Government has released a further exposure draft of regulations governing Australia's Buy Now, Pay Later (BNPL) sector for technical consultation.
This marks the next step in bringing BNPL into line with other types of credit, highlighting the Albanese Government's commitment to place Australia at the forefront of effective BNPL regulation while maintaining robust protections for consumers and fostering innovation within the industry.
The Government has already received extensive feedback from industry, consumer groups, and regulatory bodies on the proposed regulations for the new BNPL legislation which will come into effect later this year.
Key provisions of these BNPL reforms include:
- Strengthened Consumer Protections: Clear obligations on BNPL providers to conduct affordability checks, ensure responsible lending practices, and implement mechanisms to identify vulnerable consumers.
- Transparent Pricing and Disclosure: Enhanced requirements for transparency in fees and charges, ensuring Australians are fully informed of the cost of BNPL products, in addition to setting fee caps on BNPL.
- Industry‑wide Accountability: BNPL providers will be held to consistent standards, creating a level playing field and providing certainty for industry to invest and innovate.
These proposed regulations are aimed at providing appropriate guardrails to protect Australians while also giving the BNPL industry room to grow responsibly. The Albanese Government remains committed to ensuring Australia's consumer credit environment remains fit‑for‑purpose and will conduct a review informed by stakeholder feedback two years after the measures commence.
Interested stakeholders are encouraged to provide their feedback by 12 February 2025.
