Costs, Comparison Rates and 2026 Rules
Buy now pay later rules in Australia since 10 June 2025: licences, credit checks and your rights
What changed when buy now pay later became regulated credit on 10 June 2025, how low cost credit contracts work, credit checks, late fees, hardship and how BNPL affects a personal loan application.
Since 10 June 2025, buy now pay later (BNPL) products in Australia have been regulated as credit under the National Credit Code. The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 requires BNPL providers to hold an Australian credit licence, belong to the Australian Financial Complaints Authority (AFCA), and meet responsible lending obligations — in a modified, scaled form if they choose to offer their product as a low cost credit contract. For you, that means providers must make inquiries and checks before giving you a BNPL limit, must deal with hardship requests and complaints, and are subject to ASIC oversight. BNPL accounts and repayments can also matter when you later apply for a personal loan.
This guide is part of the personal loan requirements and comparison rates overview. It is general information about the rules as at October 2026; check ASIC and Moneysmart for any later changes.
What changed and when
| Date | Change |
|---|---|
| 10 December 2024 | The Responsible BNPL Act received Royal Assent |
| March 2025 | Regulations on low cost credit contracts were made, and ASIC released guidance including Regulatory Guide 281 on low cost credit contracts |
| 10 June 2025 | BNPL contracts became regulated credit; providers needed a credit licence or to have lodged an application ASIC had accepted, and AFCA membership |
| After 10 June 2025 | Providers with applications accepted for lodgement could continue to operate while ASIC decided them |
Before these reforms, most BNPL products were structured to fall outside the National Credit Code because they did not charge interest, and consumer protections relied largely on an industry code. That gap has now closed for BNPL contracts covered by the new definition.
Low cost credit contracts
The Act creates a category of low cost credit contract (LCCC). A BNPL contract that meets the definition, including limits on the fees and charges that can be imposed, can be offered under modified responsible lending obligations. In broad terms, an LCCC provider:
- must have a written policy for how it assesses unsuitability, scaled to the risks of the product,
- must make inquiries and verify information as its policy requires,
- must assess whether the contract would be unsuitable, including when it increases your limit, and
- must keep records and review its policy.
BNPL contracts that do not meet the LCCC definition, for example because their fees exceed the limits, are regulated like other credit contracts under the Code, with the full responsible lending obligations.
Providers that offer LCCCs must still meet the general conduct obligations of a credit licensee and other parts of the Code, such as disclosure, hardship and default notice requirements, with some modifications.
What it means for you as a BNPL user
- Checks before your limit. Expect questions about income and expenses and a credit check when you sign up or seek a higher limit.
- Credit guide and complaint path. The provider must tell you how to complain internally and that you can go to AFCA.
- Hardship help. If you cannot make a payment, you can ask the provider to change your arrangement. The National Credit Code hardship provisions apply, with modifications for low cost credit contracts. See hardship notices.
- Late fees still exist. Being regulated does not make BNPL free. Missed payments can still trigger late fees within the limits that apply to the contract type.
- Credit reporting. BNPL providers can report accounts and repayment information to credit reporting bodies, so missed BNPL payments can affect your credit report. See credit scores and comprehensive credit reporting.
How BNPL affects a personal loan application
Personal loan lenders assess all your existing credit. BNPL can affect an application in three ways:
| Factor | What a lender may look at | What you can do |
|---|---|---|
| Limits | The total BNPL limits available to you | Close accounts you do not use |
| Repayments | Instalments showing in your bank statements | Clear small balances before applying |
| Conduct | Late payments, missed instalments, repeated use for essentials | Avoid missed payments in the months before you apply |
Illustrative example
You have three BNPL accounts with combined outstanding instalments of $600 a month spread over the next six weeks, and you apply for a $10,000 personal loan. The lender sees regular BNPL repayments in your bank statements and treats them as committed expenses. If your monthly surplus was $650 before the BNPL instalments, it falls to about $50 while they run, and the lender may decline or reduce the loan. Paying the BNPL balances down before applying, and closing unused accounts, gives a cleaner picture. See how much can I borrow.
Warning signs with BNPL
- Using BNPL for groceries, bills or fuel regularly
- Juggling several BNPL providers at once
- Paying one BNPL instalment with another credit product
- Missed payment fees appearing more than once
Choosing between BNPL and a personal loan
| BNPL | Personal loan | |
|---|---|---|
| Typical size | Smaller purchases | Larger amounts |
| Cost | Often no interest; fees for late payments, some account fees | Interest plus fees, shown as a comparison rate |
| Term | Weeks to months | Usually 1–7 years |
| Assessment | Scaled checks for low cost credit contracts | Full responsible lending assessment |
| Complaints | Internal, then AFCA | Internal, then AFCA |
For costs on larger purchases, compare a personal loan using the comparison rate guide and responsible lending.
Frequently asked questions
Do BNPL providers have to do a credit check now?
They must meet responsible lending obligations, modified for low cost credit contracts. Under those obligations providers set a policy for inquiries and verification, and a credit check is a common part of it. The detail can differ between providers.
Is BNPL still interest free?
Many BNPL products still charge no interest, but they can charge fees within the limits that apply. Read the product's terms and fee schedule.
Can I complain to AFCA about a BNPL provider?
Yes. BNPL providers covered by the reforms must be AFCA members. Complain to the provider first; if you are not satisfied, lodge a complaint with AFCA.
Does closing BNPL accounts help my personal loan application?
It can, because lenders consider available limits and repayments. Closing an account does not erase past repayment history, but it reduces the credit you could draw on.
Sources and where to check
- ASIC — buy now pay later credit licensing and Regulatory Guide 281
- ASIC Moneysmart — buy now pay later for consumers
- Federal Register of Legislation — Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024
- Australian Financial Complaints Authority — complaints about BNPL providers
- National Debt Helpline — free financial counselling
