The Australian Parliament passed the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 in the final sitting week of November 2024, bringing buy now, pay later providers formally within the scope of the National Consumer Credit Protection Act. The legislation requires BNPL providers to obtain an Australian credit licence and to comply with responsible lending obligations.
CREDIT LICENCES AND LENDING OBLIGATIONS REQUIRED
Under the new framework, BNPL providers must conduct affordability assessments before extending credit arrangements to customers. The responsible lending obligations mandate that lenders take reasonable steps to verify that a consumer can repay a BNPL arrangement without experiencing substantial hardship — although providers may elect to comply with modified responsible lending obligations tailored to low-cost BNPL products.
Providers in the Australian market include Afterpay, Zip and Humm.
NEW ZEALAND MOVED FIRST IN SEPTEMBER 2023
Australia's legislative action follows New Zealand, which completed its own BNPL regulatory framework in September 2023 with a 12-month transition period for existing providers to come into compliance.