Treasury Laws Amendment (Payments System Modernisation) Act 2025 (46 of 2025)

Schedule 1   Amendment of the Payment Systems (Regulation) Act 1998 etc.

Part 2   Special designated payment systems

Division 1   Amendments

Payment Systems (Regulation) Act 1998
29   After Division 2 of Part 3

Insert:

Division 2A - Special designated payment systems

11B Minister may designate payment systems

(1) The Minister may, by legislative instrument, designate a payment system as a special designated payment system if the Minister considers that designating the payment system is in the national interest.

(2) To avoid doubt, the Minister may designate a payment system under subsection (1) whether or not the payment system has been designated by the Reserve Bank under subsection 11(1).

Conditions on designation

(3) Before designating a payment system under subsection (1), the Minister must:

(a) consult the Reserve Bank and each special regulator on the proposed designation; and

(b) consider the following:

(i) whether there are alternatives to the designation available under this Act or any other Act;

(ii) the outcome of the consultation undertaken by the Minister under paragraph (a);

(iii) any other matter the Minister considers relevant.

Revocation

(4) The Minister may revoke the designation if, at the time of the revocation, the Minister considers that the designation is no longer necessary or appropriate.

11C Meaning of special regulator

(1) The following are special regulators :

(a) the Reserve Bank;

(b) any entity prescribed by the regulations as a special regulator.

(2) An entity may be prescribed as a special regulator only if the entity is a Commonwealth entity (within the meaning of the Public Governance, Performance and Accountability Act 2013) or a Commonwealth company (within the meaning of that Act).

11D Nomination of special regulators

(1) The Minister may, by legislative instrument, nominate one or more special regulators in relation to a special designated payment system if the Minister considers that doing so is in the national interest.

(2) If a special regulator is nominated in relation to a special designated payment system under subsection (1), then the special regulator is a nominated special regulator in relation to that special designated payment system.

(3) The special regulator is a nominated special regulator either:

(a) for the period specified in the nomination; or

(b) if no period is specified - until the nomination is revoked.

Conditions on nomination

(4) Before nominating a special regulator under subsection (1), the Minister must:

(a) consult the special regulator; and

(b) if the Minister is not the responsible Minister for the special regulator - obtain written consent to the nomination from the responsible Minister; and

(c) be satisfied that the nomination is consistent with any functions of the special regulator under this Act or any other Act (and with any requirements that apply to the performance of those functions); and

(d) consider the following:

(i) the outcome of the consultation undertaken by the Minister under paragraph (a);

(ii) any other matter the Minister considers relevant.

Revocation

(5) The Minister may revoke a nomination made under subsection (1) if, at the time of the revocation, the Minister considers that the nomination is no longer necessary or appropriate.

11E Functions and powers of nominated special regulators

(1) Subject to this section, a nominated special regulator in relation to a special designated payment system may perform the functions, and exercise the powers, of a nominated special regulator under this Act in relation to that special designated payment system.

Restrictions relating to Ministerial directions

(2) A nominated special regulator must not perform a function, or exercise a power, of the kind mentioned in subsection (1) unless:

(a) the Minister has given the nominated special regulator a matters direction under subsection 11F(1), the effect of which is that specified matters must be considered by the nominated special regulator before performing the function or exercising the power; and

(b) the nominated special regulator has considered those matters.

(3) Subsection (2) does not apply to functions and powers under the following:

(a) section 26 (which deals with requests for information);

(b) section 30A (which deals with enforceable undertakings);

(c) section 31 or 31A (which deal with delegations);

(d) the Regulatory Powers Act as it applies in relation to this Act.

(4) In performing a function, or exercising a power, of a kind mentioned in subsection (1), a nominated special regulator must comply with any directions given to the nominated special regulator by the Minister under subsection 11F(1).

Consultation

(5) Before a nominated special regulator in relation to a special designated payment system performs a function, or exercises a power, under this Act in relation to the special designated payment system, the nominated special regulator must consult:

(a) the Reserve Bank (if the nominated special regulator is not the Reserve Bank); and

(b) if there are one or more other nominated special regulators in relation to the special designated payment system - each of those other nominated special regulators.

11F Ministerial directions to nominated special regulators

(1) Subject to this section, the Minister may, by legislative instrument, give directions of the following kinds to a nominated special regulator in relation to the performance of its functions, or the exercise of its powers, under this Act in relation to a special designated payment system:

(a) a direction (a matters direction )specifying matters that must be considered before performing or exercising such a function or power;

(b) a direction (a purposes direction )specifying purposes for which such a function or power must, or must not, be performed or exercised.

Note: Nominated special regulators must comply with directions given under this subsection: see subsections 11E(2) and (4).

(2) However, the Minister must not give a nominated special regulator a purposes direction in relation to a function or power unless, before or at the same time as giving the purposes direction, the Minister gives the nominated special regulator a matters direction in relation to that function or power.

(3) To avoid doubt, a direction given under subsection (1) may relate to all functions and powers of the kind mentioned in that subsection, or only to one or more specified functions or powers of that kind.

Conditions on giving directions

(4) The Minister must not give a direction under subsection (1) unless the Minister considers that doing so is in the national interest.

(5) Before giving a direction to a nominated special regulator under subsection (1), the Minister must:

(a) consult the nominated special regulator; and

(b) if the nominated special regulator is not the Reserve Bank - consult the Reserve Bank; and

(c) if the Minister is not the responsible Minister for the nominated special regulator - obtain written consent to the direction from the responsible Minister; and

(d) be satisfied that giving the direction is consistent with any functions of the nominated special regulator under this Act or any other Act (and with any requirements that apply to the performance of those functions); and

(e) consider the following:

(i) the outcome of the consultation undertaken by the Minister under paragraph (a) and (if applicable) paragraph (b);

(ii) any other matter the Minister considers relevant.

Restrictions on content of directions

(6) The Minister must not give a direction under subsection (1) in relation to functions and powers under any of the following:

(a) section 26 (which deals with requests for information);

(b) section 30A (which deals with enforceable undertakings);

(c) section 31 or 31A (which deal with delegations);

(d) the Regulatory Powers Act as it applies in relation to this Act.

(7) A direction given under subsection (1) may specify matters or purposes that relate to a particular special designated payment system, but must not specify matters or purposes that relate to a particular participant in a special designated payment system.

(8) To avoid doubt, a direction given under subsection (1) must not require a nominated special regulator to do any of the following:

(a) impose, vary or repeal a particular provision of an access regime;

(b) determine, vary or revoke a particular standard;

(c) give, vary or revoke a particular direction.

When direction is in force

(9) A direction given under subsection (1):

(a) comes into force:

(i) unless subparagraph (ii) of this paragraph applies - on the day on which it is given; or

(ii) if the direction specifies a later day as the day on which it comes into force - on the day so specified; and

(b) continues in force until it is revoked.

Revocation

(10) The Minister may revoke a direction given under subsection (1) if, at the time of the revocation, the Minister considers that the direction is no longer necessary or appropriate.

11G Reports by nominated special regulators

(1) The Minister may, by notice in writing, request a nominated special regulator in relation to a special designated payment system to report in writing to the Minister on:

(a) the performance of functions and exercise of powers under this Act by the nominated special regulator; or

(b) without limiting paragraph (a), the nominated special regulator's compliance with a direction given to the nominated special regulator under subsection 11F(1).

(2) The nominated special regulator must comply with a request made by the Minister under subsection (1).

(3) If the Minister is not the responsible Minister for the nominated special regulator, the nominated special regulator must also provide a copy of a report prepared under subsection (1) to the responsible Minister.