Crackdown on buy now, pay later schemes announced as Labor warns of dangers of growing debt

The federal Labor government plans to regulate buy now, pay later schemes as credit products. It says up until now the sector has ‘been largely unregulated and unchecked’. Photograph: Alan Porritt/AAP

The Albanese government will regulate buy now, pay later schemes as credit products, due to the “growing dangers” of cash-strapped consumers getting too far in debt.

The assistant treasurer, Stephen Jones, announced the reforms on Monday, warning the risks of BNPL “disproportionately [affect] women, First Nations communities and people on low incomes”.