The Albanese Government is delivering on its commitment to make Australia's payment system safer, stronger, and more productive.
Today we have released the exposure draft legislation that lays the foundations for a new regulatory framework for payment service providers.
Whether it's using your phone to pay, sending money overseas, or using stablecoins, Australians rely on a fast, secure and trusted payment system.
Our payments system is world‑class, and these reforms help ensure that system continues to deliver for Australian consumers and business.
This draft legislation delivers:
- A core licensing regime that will set clearer obligations on payment service providers that perform specific functions.
- A graduated regulatory framework for stored value facilities like prepaid accounts, stablecoin issuers or wallets that hold customer funds.
The reforms allow a more agile regulatory system that tailors obligations to the size and type of providers. A digital wallet that simply passes through payment instructions to your bank will face different regulations than a digital wallet that holds your funds. This will promote competition and innovation while delivering necessary consumer protections.
Another tranche of legislation will be consulted on next year. That will cover more specific elements of the new regulatory framework, including additional licensing obligations such as safeguarding payment‑related money, exemptions and exclusions, a framework for unclaimed monies, APRA supervisory powers, and a rule‑making power to introduce a mandatory, revised ePayments Code.
The exposure draft legislation and explanatory material can be found on the Treasury website. Submissions will remain open until 6 November 2025.
This reform builds on the changes the Government made last month with the passage of the Treasury Laws Amendment (Payments System Modernisation) Bill 2025 and will work alongside the exposure draft legislation on digital asset platform reforms that is also out for consultation.
