BNPL services are set to be regulated under credit laws from June, raising questions about transparency, affordability checks, and consumer impact. From 10 June 2025, buy now, pay later (BNPL) products will be regulated under the National Consumer Credit Protection Act, aligning them with traditional credit products for the first time. The changes will introduce new requirements for affordability checks, responsible lending practices, and stronger consumer protections. However, questions remain over how BNPL use will affect borrowers' credit scores and access to finance. The federal government released a further exposure draft of the planned reforms in early February this year after receiving substantial feedback from industry representatives, consumer advocates, and regulatory agencies.

Assistant Treasurer Stephen Jones said in February that the reforms aim to balance consumer protection with industry growth. Key provisions include Strengthened consumer protections, BNPL providers will need to perform affordability checks, follow responsible lending practices, and identify vulnerable consumers. Transparent pricing and disclosure: New rules will require clear information on fees and charges, along with fee caps to prevent excessive costs. Industry-wide accountability: The reforms establish consistent standards for all BNPL providers, creating a more predictable environment for investment and innovation. The government said that the measures are designed to provide appropriate safeguards while allowing the BNPL sector to continue evolving responsibly. The Albanese government has pledged to conduct a review of the regulations two years after they are implemented, using feedback from stakeholders to assess their effectiveness.