Draft legislation to regulate the Buy Now, Pay Later (BNPL) system has been released for public consultation.
BNPL is estimated to add as much as $18.4 billion to Australia’s GDP and supports more than 120,000 jobs according to the Australian Finance Industry Association.
However, it is not subject to the regulatory framework that governs other credit products. The draft legislation amends the law to align BNPL with other types of credit.
The federal government hopes this will prevent poor product disclosure, inadequate dispute resolution, excessive default fees and unaffordable lending practices.
The draft legislation can be found at the link below and it is open until 9 April for submissions.
https://treasury.gov.au/consultation/c2024-504798
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