Next steps in modernising Australia’s payments system

The Albanese Government is today releasing two consultation papers to progress our plan to ensure Australia’s payments system delivers for our modern economy.

We are making meaningful changes that will help make our payments system more seamless, safer and stronger, and suitable for the times.

Whether it’s cheques, payment cards, digital wallets or cash, a competitive and efficient payments system is essential to support the business of everyday Australians.

The first consultation paper proposes a modernised regulatory framework for payment service providers.

It recommends that payment service providers are regulated based on the activity they perform under Australian financial services laws.

Payments service providers who hold customers’ funds would be subject to additional obligations.

The framework includes a new pathway for payment service providers to directly access payment systems and an industry standard‑setting framework to align core standards.

The Government is also consulting on powers to enable the introduction of a revised, mandatory ePayments code that will provide more robust consumer protections.

The second consultation paper seeks feedback on our approach to the winding down of Australia’s cheques system by 2030.

The Government proposes a staged transition that ensures all Australians are adequately supported and can benefit from a more efficient and safe payments system.

Our Government remains committed to maintaining access to cash throughout Australia.

We are working towards a world‑class and efficient payments system that is safe, trusted, and accessible, and enables greater competition, innovation and productivity.

The papers are available on the Treasury website. Consultation on both papers closes on 2 February 2024.