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 majored stored value facility providers and designated PSPs
- a rule‑making power to allow introduction of a mandatory ePayments code
We will release draft legislation for consultation in 2 sub‑tranches.
Tranche 1a covers core concepts and licensing obligations. You can give feedback on the draft legislation until 6 November 2025.
Tranche 1b will cover:
- more licensing obligations such as safeguarding payment‑related money
- exemptions and exclusions
- APRA powers
- a framework for unclaimed monies
- a new rule‑making power to help introduce a mandatory ePayments code
- transitional arrangements.
We plan to consult on Tranche 1b in 2026.
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.