The government is modernising the regulatory framework for payment service providers (PSPs). This makes sure it is:
- fit‑for‑purpose
- clear
- proportional to risks.
This reform works with other initiatives from the Strategic Plan for Australia’s Payments System. Together they make the payment system safe, efficient and innovative.
Implementation of reforms
We are progressing the reforms in 2 tranches. They consider views from 2 consultations on the:
Tranche 1
The modernised framework sets graduated obligations through:
- requiring PSPs that perform certain functions to get an Australian Financial Service Licence
- APRA powers for major SVF providers and designated PSPs
- a rule making power for a mandatory, revised ePayments Code.
We have released draft legislation for the full package of Tranche 1 legislation for feedback.
The full package of Tranche 1 legislation covers:
- payment function definitions and core concepts
- licensing obligations, including safeguarding payment-related money
- exemptions and exclusions
- a framework for unclaimed monies
- APRA powers for major SVF providers and designated PSPs
- a rule making power for a mandatory, revised ePayments Code
- transitional arrangements.
We have also released an early and partial draft of exemption and exclusion regulations.
The latest Tranche 1 release incorporates feedback from Tranche 1a consultations. This was released for consultation from 9 October to 6 November 2025.
Tranche 2
In 2026, we will consider more parts of the reform. This includes common access requirements and an industry standard setting body. We will review and update the ePayments Code.