This bill became law on Dec 10th, 2024.
Budget, tax & economy
Buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. providers must hold an Australian credit licenceA licence a lender needs to offer regulated consumer credit in Australia, which BNPL providers will now need too. and follow Australia's consumer credit laws, bringing these products into the same legal framework as other consumer loans.
Buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. products were operating outside Australia’s consumer credit laws, multinational tax reporting was less visible, and build-to-rent tax settings needed clearer conditions. This bill brings BNPLA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. into the credit law framework, expands public country-by-country tax disclosure, and sets tax rules to encourage eligible long-term rental housing.
Australia had already tightened rules for payday loans and consumer leases in 2022, but buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. products still sat outside the consumer credit regime while Labor had also flagged build-to-rent tax incentives in the 2023 budget and broader tax-transparency changes for multinationals. This bill responded by pulling BNPLA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. into credit-law oversight, pairing that with public country-by-country tax disclosure and build-to-rent tax conditions, then was reshaped into two bills before Parliament passed it in late November 2024 and it became law in December.
The main criticism was that the bill’s housing tax concessions and buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. rules could miss the real problems by giving benefits to big investors while adding costs or weak protections for consumers. Those objections came from different directions: Coalition speakers attacked extra regulation and the build-to-rent settings, while Greens and some crossbench supporters said the consumer safeguards and housing affordability measures did not go far enough.
Stephen Jones MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 10 Dec 2024
Final passage
Passed without a counted vote
12 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
188 days
From introduction to the latest recorded parliamentary step
Meaning
Buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. providers must hold an Australian credit licenceA licence a lender needs to offer regulated consumer credit in Australia, which BNPL providers will now need too. and follow Australia's consumer credit laws, bringing these products into the same legal framework as other consumer loans.
Buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. providers can choose a lighter responsible lending model, but they still must check whether the credit is unsuitable and keep a written policy on how they assess customers.
Large multinational groups operating in Australia will have to publish selected tax information for each country where they operate, making their tax affairs more visible to the public.
Eligible build-to-rent projects can get faster tax deductions for construction costs, which is designed to encourage more purpose-built rental housing.
Build-to-rent projects seeking these tax benefits must offer homes to the public on leases of at least 5 years, unless shorter terms are requested by tenants.
Because LCCCs are subject to the Credit Code, LCCC providers are required to comply with the licensing requirements in Chapter 2 of the Credit Act. They are required to hold and maintain an Australian credit licence and to comply with the relevant licensing requirements and licensee obligations.Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) explanatory memorandum
LCCC providers can elect to either be subject to the modified RLO framework or to comply with the existing RLO framework in Divisions 1 to 4 of Part 3-2 of the Credit Act.Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) explanatory memorandum
I'll turn to schedule 4 of the bill, and pay credit to my colleague the Assistant Minister for Competition, Charities and Treasury. This schedule establishes Australia's public country-by-country reporting regime. Assistant Minister Leigh has been working hard on these provisions to implement the government's election commitments. It will require certain large multinational enterprises operating in Australia to publish selected tax information on a country-by-country basis for the jurisdictions in which they operate. This implements a key election commitment of the government and will establish one of the world's most comprehensive public country-by-country reporting regimes.Second reading speech
increases the rate of the capital works tax deduction from 2.5 per cent per year to 4 per cent per year for active BTR developments; andTreasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) explanatory memorandum
(i) available to the public to be tenanted by way of lease for a period of 5 years or more in accordance with any requirements determined under subsection (1A); orTreasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 final Act text
Context
Australia had already tightened rules for payday loans and consumer leases in 2022, but buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. products still sat outside the consumer credit regime while Labor had also flagged build-to-rent tax incentives in the 2023 budget and broader tax-transparency changes for multinationals. This bill responded by pulling BNPLA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. into credit-law oversight, pairing that with public country-by-country tax disclosure and build-to-rent tax conditions, then was reshaped into two bills before Parliament passed it in late November 2024 and it became law in December.
Parliament tightens rules for payday loans and consumer leases
The government later pointed to these 2022 reforms as the earlier step in updating consumer credit law before turning to buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. products.
Hansard ↗Labor flags build-to-rent tax incentives in the 2023 budget
Speakers in the House said the build-to-rent tax changes had been announced more than a year earlier as part of the 2023 budget housing agenda.
Hansard ↗Government introduces a bill to regulate buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. and add tax and housing measures
The second reading speech said the bill would bring BNPLA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. into consumer credit law while also advancing multinational tax disclosure and build-to-rent tax settings.
Hansard ↗The omnibus bill is split into two bills
When the bill reached the Senate it was divided, separating the main Treasury package from the related Capital Works (Build to RentPurpose-built rental housing owned by a single investor or developer and offered to renters for the long term. Misuse TaxA penalty tax that applies if an entity wrongly claims one of the build-to-rent tax concessions.) Bill 2024.
Parliamentary timeline ↗Parliament passes the bill
Both houses agreed on the final text, clearing the way for the BNPLA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws., tax transparency and build-to-rent changes in this bill to become law.
Parliamentary timeline ↗Royal AssentThe final step that turns a passed bill into an Act of Parliament. makes the bill law
Royal AssentThe final step that turns a passed bill into an Act of Parliament. completed the process and turned the package into an Act that could bring BNPLA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. providers into the national credit licensing framework.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Referred to Committee (05/06/2024): Senate Economics Legislation Committee; Committee report (02/08/2024)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber considered the bill in detail and dealt with amendments before the next stage.
Consideration in detail debate
The chamber agreed to the bill at third reading, which completed passage through that chamber. Later message exchanges with the other chamber were still recorded afterwards.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time : Bill divided into two bills
The bill reached this recorded parliamentary step.
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber considered amendments before the bill moved to the next stage.
Third reading agreed to :
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Consideration of Senate message
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism was that the bill’s housing tax concessions and buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. rules could miss the real problems by giving benefits to big investors while adding costs or weak protections for consumers. Those objections came from different directions: Coalition speakers attacked extra regulation and the build-to-rent settings, while Greens and some crossbench supporters said the consumer safeguards and housing affordability measures did not go far enough.
Criticism was real but split, and much support remained conditional rather than hostile to the whole bill.
Build-to-rent tax breaks may mainly help big investors
Critics argued the build-to-rent measures amount to tax concessions for large developers, institutional investors and super funds without guaranteeing genuinely affordable rents or fixing the rental shortage. They warned the policy could subsidise projects while leaving renters exposed to high rents and weak affordability outcomes.
BNPL regulation could raise costs or be unnecessary overreach
Some opponents said bringing buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. fully into credit licensing and consumer credit law would add red tape and compliance costs that providers would pass on to users. Their concern was that a product many people use as low-cost credit would become more expensive without enough benefit.
Consumer protections may still be too weak
Several supporters argued the bill was a start but said its lighter responsible lending approach and concessions for the sector could still leave vulnerable people exposed to debt traps. They wanted tighter lending caps or stronger rules, especially for smaller debts.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
Defeated 5 to 74. Support came from Greens. Opposition came from Labor, Centre Alliance, and Liberal Party. Minor-party and independent votes were split.
The House rejected the proposed second-reading statement, so the bill’s debate continued without those housing and tax demands added.
Defeated 55 to 81. Support came from Liberal Party and Nationals. Opposition came from Labor, Greens, and Centre Alliance. Minor-party and independent votes were split.
The House rejected the opposition’s second-reading statement, leaving the original second-reading motion intact and allowing the bill to proceed.
Defeated 51 to 82. Support came from Liberal Party and Nationals. Opposition came from Labor, Centre Alliance, and minor parties and independents. Minor-party and independent votes were split.
The House rejected the attempt to delete the build to rentPurpose-built rental housing owned by a single investor or developer and offered to renters for the long term. measures, so those provisions remained in the bill.
The House agreed to the amendments made by the Senate, so the bill could pass both chambers in the same form.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Senate
Defeated 27 to 32. Support came from Liberal Party, Nationals, One Nation, and UAP. Opposition came from Labor, Greens, Australia's Voice, and minor parties and independents. Minor-party and independent votes were split.
This was a main vote on the principle of the bill.
Defeated 12 to 27. Support came from Greens and Australia's Voice. Opposition came from Labor, Liberal Party, Nationals, One Nation, and minor parties and independents.
The Senate rejected the Greens’ second-reading statement, so those housing policy calls were not added to the motion.
Defeated 25 to 31. Support came from Liberal Party, Nationals, Australia's Voice, and UAP. Opposition came from Labor, Greens, and One Nation. Minor-party and independent votes were split.
The Senate rejected the proposal to remove those listed items, so the bill kept the relevant build to rentPurpose-built rental housing owned by a single investor or developer and offered to renters for the long term. and small business tax changes at this stage.
Passed 33 to 22. Support came from Labor, Greens, Australia's Voice, One Nation, and minor parties and independents. Opposition came from Liberal Party, Nationals, and UAP. Minor-party and independent votes were split.
The Senate agreed to the package, so the bill’s build to rentPurpose-built rental housing owned by a single investor or developer and offered to renters for the long term. tax integrity rules were revised to reflect the broader deduction and withholding calculations.
Defeated 26 to 32. Support came from Liberal Party, Nationals, One Nation, and UAP. Opposition came from Labor, Greens, Australia's Voice, and minor parties and independents. Minor-party and independent votes were split.
The Senate rejected the higher write-off threshold, so the bill kept the lower threshold proposed by the government.
Defeated 26 to 32. Support came from Liberal Party, Nationals, One Nation, and UAP. Opposition came from Labor, Greens, Australia's Voice, and minor parties and independents. Minor-party and independent votes were split.
The Senate rejected the attempt to delete the penalty provision, so the non-compliance measures remained in the bill.
Defeated 27 to 31. Support came from Liberal Party, Nationals, Australia's Voice, and One Nation. Opposition came from Labor, Greens, and minor parties and independents. Minor-party and independent votes were split.
The Senate rejected the package, so the bill’s consumer credit and lease settings were not tightened in the way proposed.
Defeated 27 to 32. Support came from Liberal Party, Nationals, One Nation, and UAP. Opposition came from Labor, Greens, Australia's Voice, and minor parties and independents. Minor-party and independent votes were split.
The proposed change was not agreed.
Defeated 26 to 32. Support came from Liberal Party, Nationals, One Nation, and UAP. Opposition came from Labor, Greens, Australia's Voice, and minor parties and independents. Minor-party and independent votes were split.
The Senate rejected the package, so neither the information-protection changes nor the higher write-off threshold were adopted.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
Parliamentary debate
Start here — lead voices
Stephen Jones supports the bill and says it will regulate buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. products as consumer credit, giving Australians stronger protections while keeping the benefits of low-cost credit.
Read in Hansard ↗Howarth says the coalition will oppose the bill and move to remove key parts of it, arguing that Labor has delayed and botched the housing and tax measures and that they will not fix rental shortages or help small business.
Read in Hansard ↗Steggall supports the bill, especially the move to regulate buy-now pay-later services as credit because it will help curb financial abuse and harm to vulnerable people.
Read in Hansard ↗Sharkie says she supports the bill and wants it strengthened, because she backs the buy-now pay-later reforms and other measures but thinks the consumer protections and lending caps should be tighter.
Read in Hansard ↗All speeches by bloc
7 speakers · 8 contributions · 6 support · 1 unclear
Hansard records 2 separate contributions by Stephen Jones, including an amendment-moving contribution. They are grouped here so the speaker is listed once.
Moved amendment
Stephen Jones supports the bill and says it will regulate buy now, pay laterA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. products as consumer credit, giving Australians stronger protections while keeping the benefits of low-cost credit. He argues the changes are proportionate because BNPLA payment service that lets shoppers split a purchase into instalments, which this bill brings under credit laws. has caused harm and is currently outside the main credit laws.
“Now, the Albanese government is taking action to ensure that BNPL products are appropriately regulated.”Read this contribution in Hansard ↗
Second reading speech
Stephen Jones supports the bill and says it will properly regulate buy now pay later products as consumer credit, with obligations scaled to the risk they pose. He rejects the opposition amendment and foreshadowed substantive changes and commends the bill to the House.
“With all of those comments made, I thank the members once again for the lively debate around this bill. We won't be supporting either the second reading amendment or the foreshadowed substantive amendments. We commend the bill to the House.”Read this contribution in Hansard ↗
“These proposed amendments will require buy-now pay-later providers to hold an Australian credit licence and comply with existing requirements under the credit act, including in relation to product disclosure, dispute resolution and hardship assistance. The buy-now pay-later providers will also be subject to responsible lending obligations.”Read the full speech in Hansard ↗
“In conclusion: lots of people find these TLABs pretty boring and dry—there are lots of numbers, lots of schedules, lots of stats—but this one here today shows that we are about supporting housing and that we want to support people who are accessing credit products. There are even measures in there to help small business, with the extension of the instant asset tax write-off. Ensuring that we encourage more investment in housing is about helping families right across the country—but particularly in Bennelong—who are struggling to find affordable rent. It's about helping families move into great places like Macquarie Park, where they will have access to amazing jobs, amazing public transport and more rental housing options. And, of course, as I mentioned, the bill will help people who use the very popular buy-now pay-later services and ensure that they have some protection afforded to them by regulation. I commend the bill to the House.”Read the full speech in Hansard ↗
“You can trust a Labor government to enact protections for consumers. In 2022 we made payday loans and consumer leases safer and applied better regulation to that sector. Now, with this bill, we're going after buy-now pay-later—that part of Australia's consumer credit regulation laws. This will bring buy-now pay-later products into line with other forms of consumer credit such as personal loans and credit cards. The current lack of regulation for BNPL can lead to poor product disclosure, excessive fees if the consumer defaults, unaffordable lending arrangements that lead to stress and hardship, and limited access to dispute resolution services. These reforms will require buy-now pay-later providers to have an Australian credit licence. They will also be required to comply with the requirements of the credit act, which implements standards for product disclosure, dispute resolution and, more importantly, hardship assistance.”Read the full speech in Hansard ↗
“This legislation we are debating is all about incentivising the construction of those new build-to-rent developments because we want more investment in the build-to-rent sector.”Read the full speech in Hansard ↗
“As you can see, this is a wide-ranging bill that touches on many different areas. But, because of this, people in my electorate will benefit in all kinds of ways, from being better protected when buying now and paying later to being able to get things that they need for their businesses through the instant asset write-off. There really is something for everyone. There are multiple changes being proposed, but they are also necessary changes. I commend the bill to the House.”Read the full speech in Hansard ↗
“These are really reasonable changes. They are not overly onerous. They are about ensuring there is the appropriate level of consumer protection in place for products that we know a lot of people use.”Read the full speech in Hansard ↗
5 speakers · 2 oppose · 2 mixed · 1 unclear
“The coalition will oppose schedule 1 and move amendments to remove it from this bill.”Read the full speech in Hansard ↗
“This is just another example of government interference and overreach in a space that, in the main, has been working well. Of course, this government interference will increase the cost to providers, which then will need to be recouped by these companies. And you guessed it—it will be the already stressed average Aussie that will bear this cost in this cost-of-living crisis.”Read the full speech in Hansard ↗
“We have put an amendment to this. We think the instant asset tax write-off should be higher. We've indicated that we would make it $30,000. I think, and some other speakers have made the claim too, that this needs to be a permanent fixture within what we do, because—Deputy Speaker, you'd know this—as a country we succeed. We make money in this country and that's a good thing.”Read the full speech in Hansard ↗
“This government talks about the importance of the build-to-rent scheme and about providing homes to Australians, but we learnt only about a month ago, probably not even that, that this government has spent $30 million—that's three-zero—on their Housing Australia Future Fund. Do you know how many houses they've built? I'll give you a clue: it starts with 'Z' and ends with 'O'. Donuts. Thirty million dollars, for not one house to be built. Only a Labor federal government can deliver that. So when they come out and talk the big talk about this build-to-rent scheme, you will excuse an old chippie for being a little bit sceptical about this government's plan to resolve the housing crisis that we now find ourselves in. This government is all about providing mechanisms for institutional investors to own these build-to-rent schemes. The big super funds and foreign companies will own these build-to-rent schemes. They will be the ones that invest in these build-to-rent schemes.”Read the full speech in Hansard ↗
“As I have said, some of the elements are uncontroversial and some are worthy of support, like the instant asset write-off—which is good but should go further—and some should be opposed. I think the build-to-rent tax incentives ought to be removed from the bill and considered separately. So it's a frustrating one, because I think there's a lot of good stuff in here, but it's very difficult to support.”Read the full speech in Hansard ↗
1 speaker · 1 oppose
“If the government wanted to solve this crisis—especially the rental crisis—there are three clear things they could do. On this bill, at the very least they could include the idea that, if a developer receives public money, 100 per cent of the apartments could be affordable. They could put a freeze and cap on rent increases on the apartments that are being built under this scheme so that, if a developer is receiving public money, at the very least they're not allowed to jack up the rent by as much as they want. They could do all that but have decided they're not going to, because apparently this seems to be about funnelling more cash into the pockets of property developers, who dictate the government's policy on housing.”Read the full speech in Hansard ↗
4 speakers · 4 support
“Finally, I welcome that buy-now pay-later is finally going to be regulated as a form of credit. Until now, these services have largely been unregulated, and they have caused harm amongst our most vulnerable. In particular—and it's quite frightening—these services have caused harm amongst those suffering from family and domestic violence.”Read the full speech in Hansard ↗
“However, I do support the bill and hope that it can be strengthened in the debate.”Read the full speech in Hansard ↗
“The tightening of the regulations around accessing buy-now pay-later is long overdue, and this bill is definitely a welcome step in the right direction.”Read the full speech in Hansard ↗
“While I acknowledge the concerns of the Property Council and others, I am hesitant to vote against a bill that seeks to add to housing supply, as I'm hesitant to move amendments to adjust the investment attractiveness of BTR by removing provisions for affordable housing. I understand that a delicate balance needs to be struck between the provision of affordable housing and investment attractiveness, and I also understand that affordable housing does not work for every development proposal. But ultimately, with vacancies and housing approvals at their current levels, I'm not assured that the market will accommodate the needs of all renters under the current conditions. The government will, however, need to monitor the settings in this bill and adjust accordingly if the desired outcomes are not met.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Consideration in detail debate
Consideration in detail
The chamber considered the bill in detail and dealt with amendments before the next stage.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time : Bill divided into two bills
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Discharged from Notice Paper
Discharged from Notice Paper
The bill reached this recorded parliamentary step.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Amendments considered
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
House · Consideration of Senate message
House agreed to Senate amendments
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
Senate Economics Legislation Committee; Committee report (02/08/2024)
Referred to committee
Referred to Committee (5 June 2024): Senate Economics Legislation Committee; Committee report (2 Aug 2024)
APH bill page notes
