Treasury Laws Amendment (Payments System Modernisation) Bill 2025; Second Reading

Campbell argued that the bill was essential for protecting consumers and maintaining confidence in a rapidly evolving digital payments landscape. Campbell noted that the legislation aligned with the Strategic Plan for Australia's Payment System, aiming to reduce scams, strengthen cybersecurity, and ensure accessibility for all Australians, including those using traditional payment methods. Campbell explained that the bill allowed the Treasurer to designate high-risk systems while preserving the Reserve Bank's independence through general rather than specific directions.

Wilson welcomed the need to update legislation for modern payment technologies but criticised the government for overreaching by extending Reserve Bank powers into areas where it lacked specific expertise, potentially stifling financial innovation. Wilson argued that granting significant powers to the Treasurer without parliamentary disallowance mechanisms bypassed proper scrutiny and accountability. Wilson also raised concerns about the impact of payment system costs on small business cash flow and highlighted the need for robust cybersecurity measures to protect against scams.

Moncrieff argued that the 1998 Act was outdated and failed to capture modern payment methods like digital wallets and stablecoins, creating regulatory blind spots. Moncrieff explained that the bill updated definitions to ensure the full value chain of payment facilitators was accountable, thereby protecting consumers from unfair fees and data misuse. Moncrieff highlighted that the new civil penalty framework and enforceable undertakings provided regulators with flexible tools to ensure compliance without relying solely on costly criminal proceedings.

McCormack supported the bill's objectives but endorsed the Coalition's amendment regarding parliamentary oversight, citing concerns about the lack of accountability for Reserve Bank and Treasurer decisions. McCormack contrasted the debate with the collapse of a superannuation fund, arguing that greater regulatory oversight was needed to prevent financial ruin for investors. McCormack also questioned the government's decision not to renew the contract of the Australian Small Business and Family Enterprise Ombudsman and raised issues regarding merchant fees and small business insolvencies.

Aldred aligned with the Coalition's stance, backing the bill's modernisation aims but voicing deep worry regarding insufficient parliamentary scrutiny of regulatory choices. Aldred pointed out difficulties for small firms, such as higher input expenses and merchant card fees, and urged splitting debit and credit charges to shield consumers. Aldred stated that should the amendment fail, the Coalition would not block the bill, yet stressed the requirement for protections to safeguard regional and small business interests.