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Previously Buy Now Pay Later (BNPL) products operated outside of the National Consumer Credit Act. With effect from Tuesday, 10 June 2025, BNPL products such as Afterpay, Zip and Humm will be treated the same as traditional credit products such as credit cards.

As BNPL transactions now account for approximately $19 billion of transactions in Australia annually, these changes will affect a significant number of Australians. 

Providers must now:

· Hold an Australian Credit Licence

· Be a member of the Australian Financial Complaints Authority (AFCA)

· Adhere to responsible lending obligations; and 

· Meet additional consumer protection standards.

The changes in practice:

· Providers must complete credit checks and enquiries about a consumer’s financial situation; and

· Report the credit checks on the consumer’s credit file

· Providers may also report missed or late payments on the consumer’s credit file

· This may have a negative impact on a borrower’s credit file, affecting lending for more traditional credit e.g. loans and mortgages or eligibility for a tenancy agreement.

The benefits:

· Better protection against irresponsible lending practices;

· Access to formal methods of dispute resolution through AFCA;

· Clearer processes for handling financial hardship; and

· More consistent consumer protections across all credit products.    

This is welcome news to those involved in assisting consumers who are experiencing financial difficulty.

 In his address at the 16th ATAX International Conference on Tax Administration, Commissioner of Taxation Rob Heferen has stated that Australia's tax debt has reached $105.1 billion. Notably, nearly half of this amount—$46.4 billion—is considered collectable debt, almost double the $26.5 billion owed in 2019.

Commissioner Heferen acknowledged that 22,000 taxpayers, representing about 1% of all debtors, are responsible for $11 billion, or 20% of the collectable debt. These taxpayers are now the focus of the Australian Taxation Office's (ATO) intensified debt collection efforts.

In the 2021–22 fiscal year, the ATO collected $545.8 billion out of the $590.3 billion due, reflecting a 90.1% voluntary compliance rate, which increases to 92.5% when including compliance actions.

The largest portion of the tax gap, amounting to $25.8 billion, stems from personal income taxes, with a net tax gap of 8.5%. This is attributed to individual taxpayers.

For the full article on Accounts Daily website - click HERE

Australian Financial Security Authority (AFSA) has released the June Personal Insolvencies report.

The number of new personal insolvencies decreased to 1,012 in June 2025, dropping from 1,087 in May 2025 according to the provisional personal insolvency statistics released today.

Of these, 295 were involved in a business as a sole trader, in a partnership or as a director in a company.

The most common industries where an individual worked were:
*construction
*health care and social assistance
*other services.    

You can read their full report here 

 Tim Xenos, former CEO of FAL Healthy Beverages (Coco Joy), has been sentenced to 18 months imprisonment via an Intensive Corrections Order (ICO) for misusing over $100,000 of company funds for personal legal and bankruptcy expenses. While bankrupt, Xenos illegally managed the company, used his position dishonestly for financial gain, and failed to disclose income to his bankruptcy trustee.

Found guilty in February 2025, Xenos showed no contrition, and the court mandated 200 hours of community service. He is now disqualified from managing companies until 27 February 2030. The case, prosecuted by the Commonwealth DPP following an ASIC referral, is under appeal. The offences occurred between 2023 and 2024, with Xenos previously bankrupt from 2011 to 2015.

Read the full ASIC Article here