BNPL Regulation Takes The Final Step In Australia

On 29 November 2024, the Australian Parliament passed the long-awaited Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 (Bill).

The passing of the Bill means Buy Now, Pay Later (BNPL) providers will be covered by the National Consumer Credit Protection Act 2020 (Credit Act) like traditional credit providers.

As noted in our previous post regarding the exposure draft of the Bill, a new concept of 'low cost credit contract' (LCCC) has been introduced into the Credit Act.

The Bill defines LCCCs by reference to a number of factors:

• A type of credit to which the Credit Code applies (i.e. consumer credit);
• The period provided under the contract (to be defined by regulations);