{"id":"F2006L01748","name":"Payment Systems (Regulation) Act 1998 - Declaration No. 1 of 2006 regarding Purchased Payment Facilities","slug":"payment-systems-regulation-act-1998-declaration-no-1-of-2006-regarding-purchased-payment-facilities","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":59528,"registerId":"commonwealth-F2006L01748-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Payment Systems (Regulation) Act 1998 - Declaration No. 1 of 2006 regarding Purchased Payment Facilities","content":"RESERVE BANK OF AUSTRALIA\n\nPayment Systems (Regulation) Act 1998\n\nDeclaration No. 1, 2006 regarding Purchased Payment Facilities\n\nThe Reserve Bank of Australia, under Section 9(3) of the Payment Systems (Regulation) Act 1998 (the ‘Act’), declares that the Act does not apply to the following specified classes of facilities, having determined that it is not appropriate for this Act to apply to facilities in those classes:\n\n(a) Gift card facilities, as defined by the Australian Securities and Investments Commission (ASIC) in its Class Order CO 05/738 (released as part of ASIC’s 15 November 2005 policy statement on non‑cash payment facilities).\n\n(b) Loyalty schemes, electronic road toll devices and pre-paid mobile phone accounts, as defined by ASIC in its Class Orders CO 05/737, CO 05/739 and CO 05/740 (also released as part of ASIC’s 15 November 2005 policy statement on non‑cash payment facilities).\n\nSigned\n\n\\[IJM\\]\n\nIJ Macfarlane\n\nGovernor\n\nReserve Bank of Australia\n\nDate 24/4/2006","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is a standard exemption instrument operating exactly as intended by Section 9(3) of the parent Act. It does not expand or alter the scope of the Payment Systems (Regulation) Act 1998; rather, it exercises a specific discretion granted by that Act to exclude certain facility classes from coverage. The scope remains precisely what the original legislation contemplated."},"complexity_factors":["Very short document (under 200 words)","Only 2 operative paragraphs with simple conditional structure","No defined terms within the instrument itself (relies entirely on external ASIC class orders for definitions)","No cross-references to other legislation beyond the empowering provision (Section 9(3))","Simple declarative structure: 'the Act does not apply to X'","No exceptions, provisos, or nested conditions"],"plain_english_summary":"This is a formal declaration by the Reserve Bank of Australia (RBA) that exempts certain types of payment facilities from being regulated under the Payment Systems (Regulation) Act 1998.\n\n**What it does:**\nThe RBA has decided that three specific categories of 'purchased payment facilities' don't need to follow this particular Act:\n\n- **Gift cards** – those store or prepaid cards you buy as presents\n- **Loyalty schemes, electronic toll tags, and prepaid mobile phone accounts** – your frequent flyer points, e-tags for motorways, and phone credit you buy upfront\n\n**Who it affects:**\n- **Businesses** that issue gift cards, run loyalty programs, sell toll devices, or provide prepaid mobile services – they don't have to comply with the Payment Systems (Regulation) Act for these specific products\n- **Consumers** who use these products – though the practical impact is minimal since these facilities are still regulated by ASIC (the corporate regulator) under different rules\n\n**Why it matters:**\nThis declaration carves out exceptions to avoid double-regulation. These facilities are already overseen by ASIC through 'class orders' (broad regulatory exemptions), so making them also follow the Payment Systems Act would be redundant. It streamlines regulation by letting ASIC handle these particular payment products while the RBA focuses on larger payment systems."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":true,"description":"The declaration narrows the statutory scope by stating that the Payment Systems (Regulation) Act 1998 does not apply to specified classes of facilities (gift cards, loyalty schemes, electronic road toll devices, and pre‑paid mobile phone accounts) as defined by the cited ASIC class orders. This is an explicit exclusion from the Act under the RBA's s9(3) power and thus changes who is subject to the Act for those classes; determinations of whether particular products are excluded require reference to the ASIC class orders named in the declaration."},"complexity_factors":["Very short instrument with a narrow, single legal effect (exclusion of specified classes).","Relies on external definitions in ASIC Class Orders (CO 05/737, CO 05/738, CO 05/739, CO 05/740), requiring cross‑reference to determine precise scope.","Exercise of statutory discretion under Section 9(3) creates dependence on the RBA's judgment of \"appropriateness\", a potentially interpretive phrase.","Interaction risk with other regulatory instruments (ASIC orders and other statutes) increases practical complexity despite the declaration's brevity.","No procedural detail or transitional rules provided — implementers must infer compliance implications."],"plain_english_summary":"The Reserve Bank has used s9(3) of the Payment Systems (Regulation) Act to declare that the Act does not apply to certain payment‑related classes — gift cards, loyalty schemes, electronic road‑toll devices and pre‑paid mobile accounts — as defined by the cited ASIC class orders.  \n\nThat removes those facilities from the Act’s regulatory scope, affecting their providers’ compliance obligations and tying legal effect to ASIC’s class‑order definitions."}},"importantCases":[],"_links":{"self":"/api/acts/payment-systems-regulation-act-1998-declaration-no-1-of-2006-regarding-purchased-payment-facilities","history":"/api/acts/payment-systems-regulation-act-1998-declaration-no-1-of-2006-regarding-purchased-payment-facilities/history","analysis":"/api/acts/payment-systems-regulation-act-1998-declaration-no-1-of-2006-regarding-purchased-payment-facilities/analysis","conflicts":"/api/acts/payment-systems-regulation-act-1998-declaration-no-1-of-2006-regarding-purchased-payment-facilities/conflicts","importantCases":"/api/acts/payment-systems-regulation-act-1998-declaration-no-1-of-2006-regarding-purchased-payment-facilities/important-cases","documents":"/api/acts/payment-systems-regulation-act-1998-declaration-no-1-of-2006-regarding-purchased-payment-facilities/documents"}}