The Treasury Laws Amendment (Payments System Modernisation) Bill 2025 (Cth) has been introduced into the House of Representatives.
The Bill seeks to implement payments regulation provisions which were contained in the Treasury Laws Amendment (Miscellaneous Measures) Bill 2024 (Cth) which lapsed before the May 2025 election. Background.
If passed, the Bill will amend the Payment Systems (Regulation) Act 1998 (PSRA) by expanding the regulatory coverage of the PSRA by:
- updating key definitions to ensure that new and emerging payment systems and participants in payment systems can be appropriately regulated.
- introducing new ministerial powers that can be exercised in the national interest to ensure the Government can respond to payments issues beyond the existing remit of the Reserve Bank of Australia (RBA).
- modernising the penalty regime in the PSRA by introducing civil penalty provisions and enforceable undertakings and increasing existing maximum criminal penalties.
The new definition of ‘payment system’ covers a broad set of arrangements, including the transmission or receipt of messages that effect, enable, facilitate or sequence the making of payments or the transfer of
funds. This would include payment systems that use non-monetary digital assets for payments or provide services that facilitate a payment being made, and ‘three party’ or ‘closed loop’ systems.
The Bill commences the day after the end of the period of 3 months beginning on the day the Bill receives Royal Assent.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
