ASIC has today announced a consultation on new regulatory guidance for the buy now pay later industry.
From June 2025, buy now pay later products will be subject to new laws. The new laws are designed to maintain the benefits of buy now pay later contracts while boosting protection for Australian consumers.
ASIC has released draft Regulatory Guide 000, Low cost credit contracts (Draft RG 000) together with Consultation Paper 382, Low cost credit contracts (CP 382) for industry and relevant stakeholders to provide feedback on.
Under the new laws, buy now pay later providers will need to hold a credit licence and comply with obligations under the National Consumer Credit Protection Act 2009 (National Credit Act) from June 2025.
Where a buy now pay later contract meets the definition of a low cost credit contract, specific obligations will apply.
The draft RG 000 is intended to help providers of low cost credit contracts to understand their key obligations, including how to comply with the modified responsible lending obligations and requirements when making materials available electronically.
ASIC welcomes feedback on the proposed guidance as set out in CP 382.
Note: Under the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024, the buy now pay later reforms commence six months after the Act receives Royal Assent (10 June 2025), or a date within the six-month period that is fixed by proclamation.
Providing feedback
Please email your feedback to: rri.consultation@asic.gov.au with the subject line ‘Feedback on CP 382’ by 5pm AEDT, 7 March 2025.
Background
The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 amends the National Consumer Credit Protection Act 2009 (National Credit Act) to extend the National Credit Code (which is Schedule 1 to the National Credit Act) to buy now pay later contracts.
Under the new regime, some obligations will differ for buy now pay later contracts that meet the definition of a low cost credit contract. For example, providers of low cost credit contracts will be able to elect to comply with modified responsible lending obligations.
In January 2025, ASIC released Information Sheet 285 which explains the credit licensing requirements that apply to anyone engaging in credit activities involving buy now pay later contracts.
ASIC is Australia’s corporate, markets and financial services regulator.
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ASIC is Australia’s corporate, markets and financial services regulator.