Australia's Department of the Treasury has released a full package of Tranche 1 draft legislation and opened consultation on a new regulatory framework for payment service providers, forming part of the government’s payments licensing reform. The draft package sets out definitions of regulated payment functions and proposed licensing obligations, including requirements for certain providers to safeguard payment-related money. It also covers exemptions and exclusions, rules for unclaimed monies, a new prudential framework, an enabling power to make rules for a mandatory and revised ePayments Code, and transitional arrangements. An early, partial draft of regulations on exemptions and exclusions has also been published. The drafting reflects feedback received through the Tranche 1a consultation held from 9 October to 6 November 2025. The consultation window runs from 11 March 2026 to 9 April 2026, with responses to be submitted through the Treasury’s consultation website.
Department of Treasury (Australia) 2026-03-11
Australia's Department of the Treasury consults on Tranche 1 draft legislation to license and prudentially regulate payment service providers
Australia's Treasury released Tranche 1 draft legislation and opened consultation on a new regulatory framework for payment service providers. The draft outlines definitions of regulated payment functions, licensing obligations, exemptions, and a new prudential framework. It includes provisions for a mandatory ePayments Code and transitional arrangements, reflecting feedback from the Tranche 1a consultation.