Noting that the regulatory architecture of the payment system has “served Australia well”, Treasurer Josh Frydenberg explained that a review is timely, especially given no change has been initiated in over two decades amid shifting consumer appetites.
According to the Treasurer, the review will ensure the architecture remains fit for purpose and is capable of supporting continued innovation for the benefit of both businesses and consumers.
It will draw on the expertise from the private sector by consulting broadly with industry, consumer and privacy advocates, and other interested parties in developing the report and recommendations.
“It is critical that the regulatory architecture supporting our payments system promotes innovation and competition to ensure that costs to business are minimised, consumer experience is enhanced and there is confidence in the security of the system,” Mr Frydenberg said.
More precisely, the review will explore whether the regulatory architecture of the payments system is suitable given rapid changes in technology; how to drive increased productivity through innovation and competition; assess government payment systems; and analyse global trends to determine how Australia can remain internationally competitive.
The review will be led by Mr Scott Farrell, who previously worked on the formative review which gave rise to the Consumer Data Right regime.
“Promoting a more innovative and robust payments environment is part of the Morrison government’s plan to build a more competitive and productive economy as we recover from the COVID-19 crisis,” the Treasurer said.
The review is due to report to the government by April 2021.
As part of the 2020–21 budget, the government announced an $800 million plan to push businesses towards adopting digital technologies to grow their business and help the post-COVID economic recovery.
“The plan supports Australia’s economic recovery by removing outdated regulatory barriers, boosting the capability of small businesses and backs the uptake of technology across the economy,” PM Scott Morrison said at the time.