Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 (138 of 2024)

Schedule 2   Buy now, pay later

Part 1   Extending the application of the National Consumer Credit Protection Act 2009

National Consumer Credit Protection Act 2009

8   Application and transitional provisions

General rule

(1) Subject to this item, the amendments made by this Part apply:

(a) on and after the delayed commencement time (see subitem (5)); and

(b) in relation to contracts entered into before, on or after the commencement of this Part.

Early applications for licences etc.

(2) Despite subitem (1), the amendments made by this Part apply on and after the commencement of this Part for the purposes of:

(a) Divisions 2, 3, 4 and 6 of Part 2-2 of the Credit Act (which are about licensing of persons who engage in credit activities); and

(b) Part 2-3 of the Credit Act (which is about credit representatives).

Transitional arrangements

(3) Subitem (4) applies if:

(a) before the delayed commencement time, a person (the applicant ) lodges an application in the approved form for:

(i) a licence authorising the applicant to engage in a covered credit activity (see subitem (5)); or

(ii) ASIC to vary the conditions on the applicant's licence by authorising the applicant to engage in a covered credit activity; and

(b) immediately before the delayed commencement time, the application has not been withdrawn by the applicant or dealt with by ASIC; and

(c) the applicant is a member of the AFCA scheme at all times in the period (the transition period ) that:

(i) starts at the delayed commencement time; and

(ii) ends when the application is withdrawn by the applicant, or dealt with by ASIC, whichever happens first.

Note: ASIC may deal with the application by granting, or refusing to grant, the licence (see section 37 of the Credit Act), by granting, or refusing to grant, the variation (see sections 45 and 46A of the Credit Act), or by refusing to receive the application (see section 218 of the Credit Act).

(4) The Credit Act does not apply in relation to covered credit activity to which the application relates if the covered credit activity is engaged in by any of the following persons during the transition period:

(a) the applicant;

(b) a person who:

(i) is an employee or a director of the applicant, or of a related body corporate of the applicant; and

(ii) is acting on behalf of the applicant and within the authority of the applicant;

(c) a person who:

(i) the applicant intends to authorise under section 64 of the Credit Act to engage in the covered credit activity on behalf of the applicant, if the applicant becomes licensed to engage in the covered credit activity; and

(ii) could, after the delayed commencement time, be validly so authorised under section 64 of the Credit Act (as amended by this Act); and

(iii) is authorised in writing by the applicant to act on behalf of the applicant and is acting within that authority;

(d) if there is a person covered by paragraph (c) of this subitem (a prospective credit representative ) in relation to the applicant - another person who:

(i) the prospective credit representative intends to authorise under section 65 of the Credit Act to engage in the covered credit activity on behalf of the applicant, if the applicant becomes licensed to engage in the covered credit activity and the prospective credit representative becomes a credit representative of the applicant in relation to the covered credit activity; and

(ii) could, after the delayed commencement time, be validly so authorised under section 65 of the Credit Act (as amended by this Act); and

(iii) with the written consent of the applicant, is authorised in writing by the prospective credit representative to act on behalf of the applicant and is acting within that authority.

Definitions

(5) In this item:

covered credit activity means credit activity that relates to a buy now pay later contract or a low cost credit contract.

Credit Act means the National Consumer Credit Protection Act 2009.

delayed commencement time means the time when Part 2 of this Schedule commences.