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 December 2023, Treasury conducted a second consultation on a proposed list of payment functions intended to underpin a new licensing framework for payment service providers. The consultation closed in February 2024. Treasury indicated that legislation would be introduced in 2024, however, no draft legislation has been introduced.
What’s next
The Bill was passed by both Houses of Parliament and received Royal Asset on 19 September 2025.
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This article was originally published on 8 September 2025 and updated on 25 September 2025.