Payment Systems regulation update

The Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 was introduced into the House of Representatives on 30 November 2023. Schedule 8 to the Bill amends the the Payment Systems (Regulation) Act 1998 (PSRA) to modernise the payments regulatory framework, ensuring it is fit-for-purpose and can address emerging risks related to payments. Background.

The Bill expands the regulatory coverage of the PSRA by updating key definitions, introducing new Ministerial powers to ensure the Government can respond to issues beyond the existing remit of the Reserve Bank of Australia, and modernising the existing penalty regime in the PSRA.

In particular the new definition of ‘payment system’ covers 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 new definition of ‘participant’ captures all entities involved in the payments value chain, including entities with or without a direct relationship to a payment system.

Schedule 8 to the Bill commences the day after the end of the period of 6 months beginning on the day the Bill receives Royal Assent.

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David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
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.

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