Exposure draft of Credit Contracts and Consumer Finance (Buy Now Pay Later) Amendment Regulations

The Draft Regulations sought to give effect to the Government’s decision to apply the Credit Contracts and Consumer Finance Act 2003 (CCCFA) to buy now pay later (BNPL) credit. The intention of the draft Regulations was to protect consumers from financial hardship, while enabling continued access to low-cost credit.

To achieve this, the Government had decided that:

• The CCCFA will apply to BNPL. This means that BNPL will be regulated as a ‘consumer credit contract’ like credit cards or personal loans, and most of the requirements of the CCCFA will apply.
• Smaller amounts of BNPL credit below a dollar threshold would be exempt from the CCCFA requirement to assess affordability. For BNPL credit above the threshold, BNPL lenders would be required to assess affordability.
• For BNPL credit below the threshold:
  • BNPL lenders must carry out comprehensive credit checks with a credit reporting agency and provide information back to credit reporting agencies
• BNPL lenders must disclose the repayment schedule and late fees when each purchase is made using BNPL, not just when the consumer credit contract is first entered into.

We sought feedback on:

• the impact of setting the threshold for BNPL lenders to assess affordability at $600
• 2 options for these affordability assessments:
  • in accordance with the Credit Contracts and Consumer Finance Regulations 2004
  • in accordance with the CCCFA’s principles-based requirement, but not the process prescribed in the regulations.
• any other issues relating to the drafting or workability of the Draft Regulations.

Following consultation, submissions were used to inform further Cabinet decisions on what exemptions should apply to BNPL loans and improve the Draft Regulations.

For further information and policy advice reflected in the final regulations for BNPL, please visit:

Buy Now Pay Later

Submissions received

We received 32 submissions on the exposure draft of the Credit Contracts and Consumer Finance (Buy Now Pay Later) Amendment Regulations 2022 (the Draft Regulations). We have published 29 submissions where authorised by the submitter.

View the submissions on the exposure draft of the Credit Contracts and Consumer Finance (Buy Now Pay Later) Amendment Regulations 2022 consultation(external link)