New Banking Laws – From June 10, 2025, sweeping changes to Australia’s banking laws will come into effect, directly impacting how citizens conduct daily transactions and manage their bank accounts. These updates are designed to increase financial transparency, protect consumers, and strengthen the country’s digital banking ecosystem. Whether you’re making regular payments, transferring funds, or opening new accounts, these new regulations will influence your routine banking activities.
This article breaks down what Australians need to know, how these laws will affect them, and what actions they need to take to stay compliant and informed.
Overview of the New Banking Laws
The reforms have been introduced under the Financial Regulation Modernisation Act 2025 and include provisions that touch on account verification, digital payment systems, transaction monitoring, and consumer protections. These changes are mandatory across all banking institutions in Australia.
Key Features of the New Laws
- Stricter Know Your Customer (KYC) verification for opening and maintaining accounts
- Mandatory use of SecurePay or gov-authorised apps for all digital transactions above $500
- Enhanced oversight of third-party payment gateways
- Real-time alerts for transactions above $1,000
- Weekly limits on certain types of fund transfers
- Introduction of a Digital Banking ID (DBID) for all users
- New penalties for non-compliance with updated banking protocols
How These Laws Affect You as a Customer
These laws are expected to create smoother, safer, and more accountable banking processes, but customers will need to adjust their routines.
Actions Required by Account Holders
- Re-verify identity for all existing accounts by June 30, 2025
- Activate a Digital Banking ID (DBID) via your bank’s mobile app or website
- Update digital wallets to comply with SecurePay standards
- Accept new terms of service to continue using internet and mobile banking
- Set transaction alerts via SMS or banking app to monitor activities
Key Account and Transaction Changes Effective June 10
| Feature | Current Rule | New Rule from June 10 | Impact on Users |
|---|---|---|---|
| KYC Reverification | At opening only | Annual re-verification required | Additional document submission |
| Digital Payments | Any app allowed | Only SecurePay or gov-certified | Limited app choices |
| Cash Transaction Limit | No specific limit | Max $5,000 per week | Encourages digital usage |
| Transaction Alert Threshold | $2,000 | $1,000 | More frequent alerts |
| Weekly Transfer Cap (Peer-to-peer) | Unlimited | $20,000 max per week | May affect large informal transfers |
| Third-party Payment App Access | Free integration | Requires bank approval | Longer onboarding time |
| DBID Requirement | Not required | Mandatory for all users | One-time registration needed |
Department-wise Contact for Queries or Complaints
| Department | Contact Number | Email Address | Operating Hours |
|---|---|---|---|
| Australian Prudential Regulation | 1300 558 849 | [email protected] | 9 AM – 5 PM, Mon to Fri |
| Australian Securities Commission | 1300 300 630 | [email protected] | 8:30 AM – 5 PM, Mon to Fri |
| Financial Services Ombudsman | 1800 367 287 | [email protected] | 9 AM – 5 PM, Mon to Fri |
| Consumer Banking Helpdesk | 1800 999 012 | [email protected] | 24/7 support available |
| SecurePay Support | 1300 450 790 | [email protected] | 7 AM – 11 PM, Mon to Sun |
| Department of Finance (Govt) | 1300 180 389 | [email protected] | 9 AM – 6 PM, Mon to Fri |
| Digital Identity Verification | 1300 888 294 | [email protected] | 9 AM – 5 PM, Mon to Fri |
| Anti-Fraud Investigation Unit | 1800 400 041 | [email protected] | 24/7 emergency reporting |
Major Impact Areas of the New Legislation
- Elderly and Non-Tech Savvy Customers
- May face challenges adapting to app-based SecurePay and DBID.
- Government will provide offline DBID registration kiosks at post offices and banks.
- Freelancers and Small Businesses
- May need to restructure frequent transfers or shift to business banking models.
- Compliance with third-party payment regulation will be crucial.
- International Money Transfers
- Tighter cross-border compliance checks and real-time monitoring.
- Delay expected for high-value overseas remittances.
- Cash Users
- Cash transaction caps and alerts on deposits over $1,000 may trigger audits.
- Encouragement to shift to digital payments.
What Happens If You Don’t Comply?
Failing to meet the new compliance rules may result in:
- Temporary freezing of accounts
- Rejection of high-value transactions
- Inability to access digital banking services
- Fines ranging from $500 to $5,000
- Mandatory investigation by the Anti-Fraud Unit
FAQs – New Banking Laws
Q1: How do I register for a Digital Banking ID (DBID)?
Visit your bank’s official website or app and complete the DBID application. Offline registration is available at post offices and designated bank branches.
Q2: What is SecurePay and how do I install it?
SecurePay is a government-approved payment app available on the App Store and Google Play Store. Banks will also provide direct download links via SMS.
Q3: Are pension or welfare accounts also affected?
Yes. All account types, including Centrelink and aged pension accounts, must comply with the KYC and DBID requirements.
Q4: Can I still use cash for shopping?
Yes, but total cash spending cannot exceed $5,000 per week. Anything beyond that must be done digitally.
Q5: Will old third-party apps like PayMate still work?
Only if they receive certification from the Reserve Bank of Australia under the new SecurePay compliance framework.
The banking law reforms from June 10 are meant to create a more secure, efficient, and transparent banking ecosystem in Australia. While this transition may pose short-term challenges—especially for elderly citizens and low-tech users—the long-term benefits include reduced fraud, better accountability, and a streamlined digital economy.
This article is for informational purposes only. For personalised advice, always consult your bank or an authorised financial advisor.
Stay ahead of the curve. Prepare your documents, activate your DBID, and update your digital wallets today.
