On 7 June 2023, a new Strategic Plan was released by the Australian Government, especially for the Payments System. In essence, this new document is all about the reforms for the Policy objectives and priorities of the Government.
Overall, there are two consultation papers on the table. The first one is about the proposals on The Payments Regulation (System) Act 1998 (PSRA) updates. The goal is to address the risks coming from new payment technologies and suggests modifications to:
- Guarantee the Australian Reserve Bank is able to regulate emerging online payment services, such as digital wallet platforms.
- And bring forward a new Ministerial identification power. This will make it possible to identify particular payment providers or services that contain risks for national interests and leave them under the oversight of regulators.
For this document, the proposers expect that legislative improvements to the PSRA will be presented to the Government before the end of this year.
As for the second consultation paper, it expects feedback on the given list of functions in the payments sphere that will be managed under the new licensing framework.
In case of success, these reforms will make sure that the payment system of Australia works for various sectors of customers, investors, and companies and delivers for the economy. They include all existing business and entertainment segments, including Pay ID pokies.
Core Principles of The New Updates
The Strategic Plan is based on the Treasury’s latest consultation on proposed reform goals and priorities, with an agendum concentrated on the following aspects:
- Modernizing the infrastructure of payment activities by supporting the transition of the industry to the New Payments Platform and phasing out cheques.
- Promoting a secure and flexible system by upgrading the supervision frameworks of the RBA, minimizing the activity of scams, and enhancing cyber security measures.
- Boosting productivity, competition, and creativity across the economy by combining the payment infrastructure with other reforms such as the skills agenda, Digital ID, and the Consumer Data Right framework.
- Updating the regulatory framework of payments on a regular basis, including a new framework for licensing, more partnerships amongst regulators, more transparency and competition across systems, and steps to reduce transaction costs for small businesses.
- Getting the position of the leader in the worldwide payments landscape for Australia through work in the Pacific and the G20.
According to the Government, the key principles to lead the future direction of Australia’s payments framework are “innovation,” “accessibility,” and “trustworthiness.”
In fact, this is stimulated by the growing level of the country’s payment systems digitization, driven by customer preferences for seamless and up-to-date technologies.
The Strategic Plan follows the four different payment system reviews in the last few years and the commitment of the previous Government to implementing a big part of those recommendations.
What Will These New Changes Bring to Australian Residents
The primary goal and vision behind the Strategic Plan is to create a modern, globally acceptable, and efficient payment infrastructure that is safe, reliable, and trustworthy. The successful implementation of all proposed suggestions will not only create convenient conditions for healthy competition but will also boost productivity and innovation.
Moreover, as the new evolving digital services are changing the way companies and businesses provide payment solutions and the way we make payments, the Government of Australia is trying all means to ensure the country’s payment structure remains “cut out for” the key goal now and into the future.
In addition, these newly brought updates will help coordinate action between the private and public segments, support new and innovative entrants entering the regulatory landscape, and offer certainty for investments.So, you can load your favorite PayID pokies and make a secure transaction or take part in investment programs, being sure they are all under the sight of the Government and carry no risks to your safety.
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