The Government has introduced the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 into the House of Representatives.

A buy now pay later arrangement is defined as an arrangement or a series of arrangements:
(a) under which a person (the merchant) supplies goods or services to a consumer (within the meaning of the National Credit Act); and
(b) under which a third person (the BNPL provider) directly or indirectly pays the merchant an amount that is some or all of the price for the supply mentioned in paragraph (a); and
(c) that includes a contract between the BNPL provider and the consumer under which the BNPL provider provides credit to the consumer in connection with the supply mentioned in paragraph (a)

If passed the Bill will:

• specifically apply the Credit Code to buy now pay later contracts
• establish low‑cost credit contracts as a new category of regulated credit. LCCCs are continuing or non-continuing credit contracts for providing credit to consumers on a low cost basis. They include buy now pay later contracts.
• establish an optional modified unsuitability assessment policy framework available to low‑cost credit contracts.

The amendments will commence 6 months after the Bill is passed and receives Royal Assent.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.