spacer
spacer
spacer
spacer



CPA LOGO
spacer
Latest News
Hot Issues
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
Compare your business
2024 Year End Tax Planning Guide (Part 2)
ATO to crack down on rental income, WFH deductions this tax time
How to Draft a Standard Form Contract
GST, PAYG withholding a ‘significant portion’ of $50bn tax debt
ATO changes will make it harder for over 42,000 small businesses.
The Deadliest pandemics in History
Budget breakdown – Federal Government Analysis
Winners & Losers
Federal Budget 2024
2024 Year End Tax Planning Guide (Part 1)
Medicare levy surcharge OR basic health insurance ?
ATO warns of ‘serious penalties’ for unlawful tax scheme promoters
ACCC scam report
Employees taking more sick days - and it's getting worse
Foreign residents selling property in Australia
How much does negative gearing really cost – an overview and an opinion?
The Shortest-reigning Monarchs in History
FBT Reminder – Odometer Reading
ATO’s debts on hold campaign prompts new IGTO guidance
A comprehensive collection of small business benchmarks
The 2025 Financial Year tax & super changes you need to know!
Underperforming employees: When can you terminate?
A comprehensive list of guides to industry specific tax deductions.
‘Renewed concerns’ about economy sees consumer sentiment dip: Westpac
Oldest Buildings in the World.
Small businesses may ‘collapse under strain of payday super’, IPA warns
ATO’s hands tied with scrapping on-hold debts, expert says
Current Articles
Vimeo test
Articles archive
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Looming changes for the “buy now, pay later” market

The Federal Government has released a consultation paper seeking views on options to
regulate the “buy now, pay later” (BNPL) market.



.


Currently the BNPL space is unregulated in Australia because it falls under the exemptions

available to certain types of credit under the National Consumer Credit Protection Act 2009.

This means BNPL products aren’t subject to responsible lending standards or the other

requirements of the Credit Act, and BNPL providers don’t need to hold an Australian credit

licence. This is despite involving financial products that offer credit.

 

Consumer advocates argue that this regulatory gap has the potential to create harm – “instant”

access to BNPL credit, without the lack of requirements and financial checks and potential

uncertainty on terms and fees which could end up in unsustainable debt.

 

The Reserve Bank of Australia estimates that approximately seven million active BNPL

accounts made a total of $16 billion in transactions in the 2021–2022 financial year – around

a 37% increase on the previous year. The majority of these are low value BNPL products

with spending limit of $2,000, although some include limits of up to $30,000 for large ticket

items.

 

The consultation paper proposes three broad options for regulatory intervention. Option 1

would impose a bespoke affordability assessment for BNPL providers under the Credit Act

and address any other regulatory gaps in a strengthened industry code to make it fit-for-

purpose. Option 2 would require BNPL providers to hold a credit licence and comply with

modified responsible lending obligations and a strengthened industry code. Option 3 would

impose the strictest regulation, with BNPL providers needing to hold a credit licence and

comply with all its regulations and the responsible lending obligations, including taking

reasonable steps to check that their BNPL products are suitable for each person who accesses

them.

 

 

 

 

 

 

Acctweb



14th-February-2023
spacer
Privacy Policy | Disclaimer