Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank the senator for his question. My understanding is that the Australian Securities and Investments Commission undertook a review into this sector and determined that a code should be voluntary. I am advised that, indeed, an announcement of that was made by the sector, today, that the sector has indicated it is putting in place a code which, I understand, comes into effect from 5 October 2021 and that it's supported by regulatory powers that enable ASIC to intervene where it identifies significant consumer detriment and to ensure that products are designed to suit target consumers.

I understand the code has attracted support of more than 95 per cent of the market in relation to the buy-now pay-later sector and has crucial points that any late fees must be capped, that it imposes some compulsory membership obligations in the sector, that it must follow the design and distribution obligations from the ASIC review and that providers must monitor vulnerable customers.

I don't have details in relation to the precise thresholds that you have identified, but, in terms of any further safeguards applicable under the code or other measures for individuals in relation to those lower threshold of loans or purchases, I shall bring any further information back to the chamber for you.