The Government has introduced the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 into the House of Representatives.
UPDATE: Bill finally passed both Houses on 29 November 2024 and is awaiting Royal Assent.
A buy now pay later arrangement is defined as an arrangement or a series of arrangements:
(a) under which a person (the merchant) supplies goods or services to a consumer (within the meaning of the National Credit Act); and
(b) under which a third person (the BNPL provider) directly or indirectly pays the merchant an amount that is some or all of the price for the supply mentioned in paragraph (a); and
(c) that includes a contract between the BNPL provider and the consumer under which the BNPL provider provides credit to the consumer in connection with the supply mentioned in paragraph (a)
If passed the Bill will:
- specifically apply the Credit Code to buy now pay later contracts
- establish low‑cost credit contracts as a new category of regulated credit. LCCCs are continuing or non-continuing credit contracts for providing credit to consumers on a low cost basis. They include buy now pay later contracts.
- establish an optional modified unsuitability assessment policy framework available to low‑cost credit contracts.
The amendments will commence 6 months after the Bill is passed and 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.
