Where things stand
On 30 July 2025, the government introduced the Treasury Laws Amendment (Payments System Modernisation) Bill 2025 to the House of Representatives. The bill passed both the House and Senate on 4 September 2025.
The bill proposes an expanded regulatory perimeter of the Payment Systems (Regulation) Act 1998 to include BNPL providers, digital wallets, crypto-asset payment facilitators, and cash distribution services. It would also introduce a ministerial designation power, enabling the Treasurer to direct nationally significant platforms into enhanced oversight, and broaden the Reserve Bank of Australia’s powers to address emerging risks in the payments ecosystem.
Separately, in June 2023, Treasury consulted on a proposed list of payment functions intended to underpin a new licensing framework for payment service providers. Treasury indicated that further consultation would occur later in 2023, and that legislation would be introduced in 2024. However, no follow-up paper has been released to date, and no draft legislation has been introduced.
What’s next
The Bill has now been passed into law and is awaiting Royal assent.