The Department of Home Affairs has released a consultation paper seeking industry feedback on proposed reductions to the monetary thresholds that trigger AML/CTF obligations for stored value cards, to address gaps in the current regime and bring Australia closer to international standards.
Where things stand
On 28 August 2026, the Department of Home Affairs released a consultation paper on proposed amendments to the regulation of stored value cards under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act).
Under the current framework, the issuance or loading of stored value cards above certain monetary thresholds triggers AML/CTF obligations. Those thresholds are:
- $1,000 for stored value cards that allow cash withdrawal
- $5,000 for stored value cards that do not allow cash withdrawal.
Below these thresholds, products can be issued without AML/CTF controls, including customer due diligence, transaction monitoring and reporting obligations.
The new monetary thresholds will be determined through consultation with industry.
Why reform is being considered
The Australian Transaction Reports and Analysis Centre’s (AUSTRAC’s) 2017 risk assessment rated stored value cards as a medium money laundering and terrorism financing risk, noting their anonymous, reloadable and internationally usable nature. Since then, evolving product functionality, including online purchases and the growing use of gift cards in scams, has widened the gap between Australia's regulatory settings and the risks these products present.
Australia's current thresholds are also significantly higher than several international comparators. The EU and UK have adopted lower thresholds in response to heightened money laundering and terrorism financing risks:
Jurisdiction | Cash withdrawal threshold | No cash withdrawal threshold |
|---|---|---|
Australia (current) | $1,000 | $5,000 |
New Zealand | NZ$1,000 | NZ$5,000 |
EU and UK | €50 | €150 |
Jurisdiction | Closed loop threshold | Open loop threshold |
United States | US$1,000 | US$2,000 |
What is proposed
The Australian Government proposes to lower the monetary thresholds for stored value cards through regulations, using existing heads of power in Items 21–24 of Table 1 of section 6 of the AML/CTF Act. The new thresholds will be determined through this consultation process.
If thresholds are lowered, businesses that currently issue or load stored value cards above the new thresholds will need to choose between:
- adjusting product design to keep issuance and loading values below the new thresholds
- complying with full AML/CTF obligations, including customer due diligence, transaction monitoring and suspicious matter reporting.
A transition period will allow businesses to update systems, onboarding processes and compliance frameworks.
What’s next
The consultation closes on 16 October 2026. Industry stakeholders should consider the impact on product design, distribution channels and customer uptake, and identify any regulatory support they need to implement any changes.
Affected businesses should also begin assessing whether to adjust their stored value card offerings to remain below the revised thresholds, or prepare to comply with the AML/CTF framework in connection with stored value card offerings.