Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025

Administered by Department of the Treasury

Legislation au F2025L01547 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the Assistant Treasurer and Minister for Financial Services

Australian Securities and Investments Commission Act 2001

Corporations Act 2001

Payment Systems (Regulation) Act 1998

Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025

Section 251 of the Australian Securities and Investments Commission Act 2001 (ASIC Act), section 1364 of the Corporations Act 2001 (Corporations Act) and section 32 of the Payment Systems (Regulation) Act 1998 (PSRA) provide the Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the respective Acts.

The Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025 (the Regulations) amend the Australian Securities and Investments Commission Regulations 2001 (ASIC Regulations), the Corporations Regulations 2001 (Corporations Regulations), and the Payment Systems (Regulation) Regulations 2006 (PSR Regulations) to support the amendments in Schedule 1 to the Treasury Laws Amendment (Payments System Modernisation) Act 2025 (the Act), which was passed by both Houses on 4 September 2025.

Schedule 1 to the Act amends the PSRA to modernise the payments regulatory framework, ensuring it is fit-for-purpose and can address emerging risks related to payments. In particular, Schedule 1 to the Act provides that the Minister may designate a payment system as a special designated payment system if the Minister considers that doing so is in the national interest. The amendments in the Schedule empower the Minister to nominate special regulators in relation to special designated payment systems and to give directions in relation to the special regulator’s performance of functions or exercise of powers under the PSRA. This allows the Minister to direct a special regulator to address payments issues that are beyond the existing remit of the Reserve Bank of Australia (RBA) under the PSRA.

The Regulations support the amendments in Schedule 1 to the Act by prescribing special regulators, heads of special regulators and eligible delegates in relation to special regulators that are nominated special regulators, thereby operationalising the modernised payments regulatory framework.

Schedule 1 to the Act also provides that, among other persons, a person prescribed by regulations may use or disclose information or documents obtained under, or for the purposes of, the PSRA to either the RBA or another nominated special regulator in relation to a special designated payment system for the purposes of the PSRA. The Regulations support the amendments in Schedule 1 to the Act by specifying prescribed persons.

Schedule 1 to the Act further provides that among other persons, a person prescribed by regulations in relation to such a nominated special regulator is not subject to civil liability in respect of an act or omission if the act or omission relates to a special designated payment system, and is done in good faith in the performance or exercise (or purported performance or exercise) of a function or power under the PSRA, or for the purposes of assisting another person to perform or exercise a function or power under the PSRA. The Regulations support the amendments in Schedule 1 to the Act by specifying prescribed persons.

Public consultation on an exposure draft of the Regulations occurred between 29 October and 11 November 2025. The consultation process took place in addition to consultations with the affected regulators. Feedback on the exposure draft of the Regulations and Explanatory Statement was considered and incorporated where relevant.

The empowering Acts do not specify any conditions that need to be satisfied before the power to make the Regulations may be exercised. Section 4 of the Acts Interpretation Act 1901 enables regulations to be made in anticipation of the commencement of the relevant authorising provisions in Schedule 1 to the Act.

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003 (Legislation Act). The Regulations are subject to disallowance under section 42 of the Legislation Act and will be repealed automatically by section 48A of that Act.

The PSR Regulations, ASIC Regulations and Corporations Regulations are not subject to sunsetting in accordance with table items 9B, 18 and 50 in section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015 (LEOMR).

The Regulations commence at the same time as the Act.

Details of the Regulations are set out in Attachment A.

A Statement of Compatibility with Human Rights is at Attachment B.

 

ATTACHMENT A

Details of the Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025

Section 1 – Name

This section provides that the name of the regulations is the Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025 (the Regulations).

Section 2 – Commencement

The Regulations commence at the same time as the Treasury Laws Amendment (Payments System Modernisation) Act 2025 (the Act) commences.

Section 3 – Authority

The Regulations are made under:

•                 the Australian Securities and Investments Commission Act 2001 (ASIC Act);

•                 the Corporations Act 2001 (Corporations Act); and

•                 the Payment Systems (Regulation) Act 1998 (PSRA).

Section 4 – Schedules

This section provides that each instrument that is specified in the Schedules to this instrument are amended or repealed as set out in the applicable items in the Schedules, and any other item in the Schedules to this instrument has effect according to its terms.

Schedule 1 – Main amendments

Payment Systems (Regulation) Regulations 2006

Item 1 – New definition for AUSTRAC

Item 1 inserts a new definition of AUSTRAC into the Payment Systems (Regulation) Regulations 2006 (PSR Regulations). The definition refers to the corresponding definition in the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AMLCTF Act).

Item 2 – Other amendments to the Payment Systems (Regulation) Regulations 2006

Regulation 7 – Prescribing special regulators, heads and eligible delegates

The amendments in Schedule 1 to the Act empower the Minister to nominate special regulators in relation to special designated payment systems and to give directions in relation to the special regulator’s performance of functions or exercise of powers under the PSRA. A special regulator is defined as the RBA or an entity that the regulations prescribed as a special regulator (see paragraph 11C(1)(b) of the PSRA as amended by the Act). An entity must only be prescribed as a special regulator if the entity is a Commonwealth entity or a Commonwealth company (within the meaning of the Public Governance, Performance and Accountability Act 2013).

Regulation 7 prescribes the following as special regulators (for the purposes of paragraph 11C(1)(b) of the PSRA as amended by the Act):

•                 the Australian Competition and Consumer Commission (the Commission);

•                 the Australian Prudential Regulation Authority (APRA);

•                 the Australian Securities and Investments Commission (ASIC); and

•                 AUSTRAC.

Under the Act, a person is the head of a special regulator if:

•                 in the case of the RBA, that person is the Governor of the RBA; or

•                 in the case of an entity prescribed by the regulations as a special regulator, the person prescribed by the regulations as the head of that special regulator (see paragraph 7(2)(b) of the PSRA as amended by the Act).

Regulation 7 prescribes the following as heads of special regulators (for the purposes of paragraph 7(2)(b) of the PSRA as amended by the Act):

•                 the Chairperson of the Commission;

•                 the Chair of APRA;

•                 the Chairperson of ASIC; and

•                 the Chief Executive Officer of AUSTRAC.

Under the Act, a nominated special regulator (other than the RBA), in relation to special designated payment systems may, by written instrument, delegate all or any of their functions or powers under the PSRA to the head of the nominated special regulator or a person prescribed as an eligible delegate in the regulations (see paragraph 31A(1)(b) of the PSRA as amended by the Act). In turn, the head of a nominated special regulator (other than the Governor of the RBA), in relation to a special designated payment system may, in writing, delegate all or any of the head’s functions or powers under the PSRA to a person prescribed as an eligible delegate in the regulations (see subsection 31A(2) of the PSRA as amended by the Act), except for the functions and powers relating to the conduct of arbitrations.

This does not limit a nominated special regulator or the head of a nominated special regulator from delegating powers in accordance with another Act.

Regulation 7 prescribes the following as eligible delegates in relation to special regulators that are nominated special regulators (for the purposes of paragraph 31A(1)(b) and subsection 31A(2) of the PSRA as amended by the Act):

•                 if the nominated special regulator in relation to a special designated payment system is the Commission – each of the following:

-          a member of the Commission (within the meaning of the Competition and Consumer Act 2010 (CCA));

–               a person who is referred to in subsection 27(1) of the CCA and is a Senior Executive Service (SES) employee or acting SES employee in the Commission.

•                 if the nominated special regulator in relation to a special designated payment system is APRA – each of the following:

-          an APRA member (within the meaning of the Australian Prudential Regulation Authority Act 1998 (APRA Act));

–               a person who is an APRA staff member (within the meaning of the APRA Act), other than a person engaged under section 47 of the APRA Act (about consultants and other people engaged to perform services), and holds or is acting in, a position in APRA that is equivalent to, or higher than, a position occupied by an SES employee. The positions that are equivalent to an SES are an APRA General Manager, Executive Director or another role that holds a similar level of seniority.

•                 if the nominated special regulator in relation to a special designated payment system is ASIC – each of the following:

-          a member of ASIC (within the meaning of the ASIC Act);

-          a senior staff member (within the meaning of the ASIC Act), other than a person engaged under subsection 121(1) of the ASIC Act (about consultants etc.);

-          an SES employee or acting SES employee who is seconded to ASIC under section 122 of the ASIC Act.

•                 if the nominated special regulator in relation to a special designated payment system is AUSTRAC – a person who:

-          is covered by the definition of AUSTRAC entrusted person in section 5 of the AMLCTF Act, other than a person covered by paragraph (c), (e) or (g) of that definition and a person covered by paragraph 225(3)(g) of that Act, and is either an SES employee or acting SES employee in AUSTRAC or holds, or is acting in, a position in AUSTRAC that is equivalent to, or higher than, a position occupied by an SES employee.

Given the nature of the functions of a nominated special regulator, delegations are limited to SES employees or acting SES employees (and persons holding a position in the Commonwealth entity that is equivalent to or higher than an SES position).

Regulation 8 – Prescribing persons authorised to use or disclose information (in relation to nominated special regulators)

The amendments in Schedule 1 to the Act allow the following persons to use or disclose information or documents obtained under, or for the purposes of, the PSRA to either the RBA or another nominated special regulator in relation to a special designated payment system for the purposes of the PSRA:

•                 a nominated special regulator;

•                 the head of such a nominated special regulator;

•                 a delegate of such a nominated special regulator or of the head of such a nominated special regulator; or

•                 a person prescribed by the regulations (see paragraph 26A(4)(d) of the PSRA as amended by the Act).

Regulation 8 prescribes the following as persons authorised to use or disclose information (for the purposes of paragraph 26A(4)(d) of the PSRA as amended by the Act):

•                 if the nominated special regulator in relation to a special designated payment system is the Commission – each of the following:

-          a member of the Commission (within the meaning of the CCA);

-          an associate member of the Commission (within the meaning of the CCA);

-          a person who is referred to in subsection 27(1) of the CCA (staff necessary to assist the Commission) or engaged under section 27A (consultants engaged to give advice to and perform services for the Commission) of that Act.

•                 if the nominated special regulator in relation to a special designated payment system is APRA – each of the following:

-          an APRA member (within the meaning of the APRA Act), other than the Chair of APRA;

-          an APRA staff member (within the meaning of the APRA Act).

•                 if the nominated special regulator in relation to a special designated payment system is ASIC – each of the following:

-          a member of ASIC (within the meaning of the ASIC Act);

-          a staff member (within the meaning of the ASIC Act).

•                 if the nominated special regulator in relation to a special designated payment system is AUSTRAC – an AUSTRAC entrusted person (within the meaning of the AMLCTF Act).

Regulation 9 – Prescribing persons protected from civil liability (in relation to nominated special regulators)

The amendments in Schedule 1 to the Act provide that:

•                 a nominated special regulator (other than the RBA);

•                 the head of such a nominated special regulator;

•                 a delegate of such a nominated special regulator or of the head of such a nominated special regulator; or

•                 a person prescribed by the regulations in relation to such a nominated special regulator (see paragraph 30B(4)(d) of the PSRA as amended by the Act);

is not subject to civil liability in respect of an act or omission if the act or omission relates to a special designated payment system, and is done in good faith in the performance or exercise (or purported performance or exercise) of a function or power under the PSRA, or for the purposes of assisting another person to perform or exercise a function or power under the PSRA. If the act or omission contravenes a direction given by the Minister or a delegator, the person must have attempted in good faith to comply with the direction. This will support the regulator’s (or regulators’) effective oversight of payments systems and participants, and, if relevant, enables multiple regulators to work more collaboratively.

Regulation 9 prescribes the following as persons protected from civil liability (for the purposes of paragraph 30B(4)(d) of the PSRA as amended by the Act):

•                 if the nominated special regulator is the Commission – each of the following:

-          a member of the Commission (within the meaning of the CCA);

-          an associate member of the Commission (within the meaning of the CCA);

-          a person who is referred to in subsection 27(1) of the CCA or engaged under section 27A of that Act.

•                 if the nominated special regulator is APRA – each of the following:

-          an APRA member (within the meaning of the APRA Act), other than the Chair of APRA;

-          an APRA staff member (within the meaning of the APRA Act).

•                 if the nominated special regulator is ASIC – each of the following:

-          a member of ASIC (within the meaning of the ASIC Act);

-          a staff member (within the meaning of the ASIC Act).

•                 if the nominated special regulator is AUSTRAC – an AUSTRAC entrusted person (within the meaning of the AMLCTF Act).

Schedule 2 – Other amendments

Australian Securities and Investments Commission Regulations 2001

Corporations Regulations 2001

Items 1 and 2 – Specific things that are not financial products

Subsection 12BAA(8) of the ASIC Act provides a list of specific things that are not financial products for the purposes of Division 2 of the ASIC Act. This includes a facility that is a designated payment system for the purposes of the PSRA. Schedule 1 to the Act amends this provision to provide that a facility that is a designated payment system or a special designated payment system (or both) will not be a financial product for the purposes of Division 2 of the ASIC Act where it is declared by regulations not to be a financial product (see paragraph 12BAA(8)(e) of the ASIC Act as amended by the Act).

Section 765A of the Corporations Act provides a list of specific things that are not financial products for the purposes of Chapter 7 of the Corporations Act. This includes a facility that is a designated payment system for the purposes of the PSRA. Schedule 1 to the Act amends this provision to provide that a facility that is a designated payment system or a special designated payment system (or both) will not be a financial product for the purposes of Chapter 7 of the Corporations Act where it is declared by regulations not to be a financial product (see paragraph 765A(1)(j) of the Corporations Act as amended by the Act).

Regulation 2BAA of the ASIC Regulations and regulation 7.1.04P of the Corporations Regulations declare that each of the following is not a financial product (for the purposes of paragraph 12BAA(8)(e) of the ASIC Act as amended by the Act and paragraph 765A(1)(j) of the Corporations Act as amended by the Act, respectively):

•                 the credit card system operated within Australia known as the MasterCard system or MasterCard network card system and designated as a payment system under section 11 of the PSRA on 12 April 2001. Notification of designation through the Commonwealth of Australia Special Gazette No S 130 of 12 April 2001 could be accessed on the Federal Register of Legislation https://www.legislation.gov.au.

•                 the credit card system operated within Australia known as the VISA system or the VISA network card system and designated as a payment system under section 11 of the PSRA on 12 April 2001. Notification of designation through the Commonwealth of Australia Special Gazette No S 130 of 12 April 2001 could be accessed on the Federal Register of Legislation https://www.legislation.gov.au.

•                 the debit card system operated within Australia known as Visa debit and designated as a payment system under section 11 of the PSRA on 23 February 2004. Notification of designation through the Commonwealth of Australia Special Gazette No S 41 of 23 February 2004 could be accessed on the Federal Register of Legislation https://www.legislation.gov.au.

•                 the payment system operated within Australia known as the ATM system and designated by Designation No 1 of 2008 as a payment system under section 11 of the PSRA on 10 December 2008. Notification of designation through the Commonwealth of Australia Special Gazette No S 271 of 10 December 2008 could be accessed on the Federal Register of Legislation https://www.legislation.gov.au. It should be noted that the designation was signed on 8 December 2008 but gazetted on 10 December 2008. Given how section 11 of the PSRA was drafted at the time, the Regulations state that the payment system was designated on 10 December 2008, when it was gazetted.

•                 the debit card system operated within Australia known as the EFTPOS system and designated by Designation No 1 of 2012 as a payment system under subsection 11(1) of the PSRA on 12 June 2012. Notification of designation through the Commonwealth of Australia Special Gazette No S 70 of 12 June 2012 could be accessed on the Federal Register of Legislation https://www.legislation.gov.au.

•                 the debit card system operated within Australia known as Debit MasterCard and designated by Designation No 2 of 2015 (Designation of the Debit MasterCard system) as a payment system under subsection 11(1) of the PSRA on 15 October 2015. The designation of the system is currently on the Federal Register of Legislation as an individual item.

•                 the prepaid card system operated within Australia and designated by Designation No 3 of 2015 (Designation of the EFTPOS prepaid system) as a payment system under subsection 11(1) of the PSRA on 15 October 2015. The designation of the system is currently on the Federal Register of Legislation as an individual item.

•                 the prepaid card system operated within Australia known as MasterCard Prepaid and designated by Designation No 4 of 2015 (Designation of the MasterCard prepaid system) as a payment system under subsection 11(1) of the PSRA on 15 October 2015. The designation of the system is currently on the Federal Register of Legislation as an individual item.

•                 the prepaid card system operated within Australia known as Visa Prepaid and designated by Designation No 5 of 2015 (Designation of the Visa prepaid system) as a payment system under subsection 11(1) of the PSRA on 15 October 2015. The designation of the system is currently on the Federal Register of Legislation as an individual item.

Where there is descriptive text in the titles of the instruments – the specific instruments are referred to. This descriptive text may be particularly helpful for the Designation No 3 of 2015 (Designation of the EFTPOS prepaid system) as that designation does not otherwise appear to refer to the name of the payment system that it is designating.

Where provisions are referred to (that is, subsection 11(1) and section 11) – the intention is to mirror the wording of the designations.


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025 (the Regulations) make amendments to the following:

•                 the Australian Securities and Investments Commission Regulations 2001 (ASIC Regulations);

•                 the Corporations Regulations 2001 (Corporations Regulations); and

•                 the Payment Systems (Regulation) Regulations 2006 (PSR Regulations).

The purpose of the Regulations is to support the amendments in Schedule 1 to the Treasury Laws Amendment (Payments System Modernisation) Act 2025 (the Act), which was passed by both Houses on 4 September 2025.

Schedule 1 to the Act also provides that the following persons may use or disclose information or documents obtained under, or for the purposes of, the Payment Systems (Regulation) Act 1998 (PSRA) to either the RBA or another nominated special regulator in relation to a special designated payment system for the purposes of the PSRA:

•                 a nominated special regulator;

•                 the head of such a nominated special regulator;

•                 a delegate of such a nominated special regulator or of the head of such a nominated special regulator; or

•                 a person prescribed by the regulations.

The Regulations support the amendments in Schedule 1 to the Act by specifying prescribed persons.

Human rights implications

The Regulations may engage the following rights:

  • Article 17 of the International Covenant on Civil and Political Rights (ICCPR) – the right to protection from unlawful or arbitrary interference with privacy;

Right to protection from unlawful or arbitrary interference with privacy

The Regulations may engage the right to protection from unlawful or arbitrary interference with privacy under Article 17 of the ICCPR, as certain persons may use or disclose information or documents obtained under, or for the purposes of, the PSRA and, in the case of disclosure, the disclosure is to a nominated special regulator. A person using or disclosing information and documents in accordance with the above does not commit an offence and is not liable to any other penalty under Commonwealth, State or Territory law as a result of using or disclosing information or documents as described. To qualify for this protection from liability, the use or disclosure of information or documents must only be for the purposes of the PSRA.

The right in Article 17 may be subject to permissible limitations, where these limitations are authorised by law and are not arbitrary. In order for an interference with the right to privacy to be permissible, the interference must be authorised by law, be for a reason consistent with the ICCPR and be reasonable in the particular circumstances. The UN Human Rights Committee has interpreted the requirement of ‘reasonableness’ to imply that any interference with privacy must be proportional to the end sought and be necessary in the circumstances of any given case. 

The amendments are not arbitrary as they are aimed at a legitimate objective and are reasonable and proportionate in achieving that objective. The amendments support the regulator’s (or regulators’) effective oversight of payments systems and participants, and if relevant, enables multiple regulators to work more collaboratively. It is important that the regulation of payment systems can continue to function seamlessly and therefore that information or documents can be used within either the RBA or other nominated special regulators to achieve purposes of the PSRA. In the event there are multiple special regulators nominated in relation to a special designated payment system, it is necessary to further authorise disclosure between those regulators to achieve the purposes of the PSRA.

The amendments are reasonable and proportionate in achieving this objective and are sufficiently circumscribed so as not to constitute an arbitrary interference with the right to privacy, particularly noting that the use or disclosure of information or documents is limited to information or documents obtained under, or for the purposes of, the PSRA. Additionally, if disclosing information or documents, such disclosure must only be between nominated special regulators (and will therefore only be relevant where a special payment system has been designated in the national interest). All nominated regulators are, further, subject to the Privacy Act 1988 and must handle and disclose information accordingly.

Conclusion

The Regulations are compatible with human rights because, to the extent that they may limit human rights, those limitations are reasonable, necessary and proportionate.

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.