The Albanese Government is addressing the risks posed by new digital payment services, which are currently unregulated, to protect consumers, promote competition and spur innovation.
The draft legislation released today for public consultation will amend the Payment Systems (Regulation) Act 1998 to update the definition of ‘payment’ and ‘payments systems’ to capture new payment methods that are widely used today, as well as those that may emerge in the future.
The amendments will:
- ensure the Reserve Bank of Australia can regulate new and emerging payments systems, such as digital wallet providers, and
- introduce a new Ministerial designation power that would allow particular payments services or platforms that present risks of national significance to be subject to additional oversight by regulators.
The draft legislation is delivering a key element of the Government’s Strategic Plan for Australia’s Payments System.
The Plan sets out a vision for a modern, world class and efficient payments system that is safe, trusted and accessible, enabling greater competition, innovation and productivity.
The exposure draft legislation and explanatory materials can be found on the Treasury website with submissions welcome until 1 November.
The legislation is expected to be introduced to parliament this year.
