ASIC extends relief for low-risk non-cash payment facilities to 2031

by Jessica Bauers

ASIC has remade its relief for low-risk non-cash payment (NCP) facilities, extending the existing framework while broader payments licensing reforms remain underway.

The new instrument, ASIC Corporations (Non-cash Payment Facilities) Instrument 2026/167 (ASIC Instrument 2026/167), replaces the previous 2016 instrument, ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211, and continues the relief until April 2031. Following consultation in October 2025, ASIC concluded that the instrument is operating effectively and efficiently and remains a necessary part of the legislative framework. The remake introduces technical updates only, with no change to the operation of the relief.

ASIC Instrument 2026/167 continues to provide exemptions for a range of low-risk NCP facilities from different aspects of the financial services licensing regime in the Corporations Act 2001 (Cth). Travellers’ cheques remain exempt from transaction confirmation requirements, while loyalty schemes and road toll facilities are not subject to the financial services laws. Prepaid mobile services and certain non-reloadable gift cards remain exempt from licensing, conduct and disclosure obligations, along with other low-value NCP products. Relief also continues for AFS licensees, who are not required to hold a specific authorisation to provide advice on, or arrange for the use of, these NCP facilities.

In practical terms, the key change is the extension of the relief to April 2031, ensuring continuity and avoiding disruption that would have resulted from the expiry of the previous instrument.

ASIC has indicated it will revisit the need for the relief once payments licensing reforms to modernise the regulatory framework for payment service providers are implemented.

For more information, please contact Chris Mee at cmee@cnmlegal.com.au or Jessica Bauers at jbauers@cnmlegal.com.au, or call 07 3211 4010.

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