![](https://imageresizer.static9.net.au/6tzvRJWwGN3Q31xZ1TF2j6JYGnE=/750x0/https%3A%2F%2F1.800.gay%3A443%2Fhttps%2Fvms-network-images-prod.s3-ap-southeast-2.amazonaws.com%2F2024%2F06%2F597148%2Ftn-buy-now.png)
Younger Australians are facing a credit crackdown as the government prepares to issue stricter regulations and rules for the buy now, pay later industry.
The new legislation will result in providers such as Afterpay and Zip being brought under the Credit Act, the Sydney Morning Herald reported.
New users will face the necessity of a credit check and the need to prove their income.
"I think it's an important piece of consumer protection," Assistant Treasurer Stephen Jones said.
Millenniasl and Generation Z Australians are likely to be disproportionately affected, as they make up the majority of buy now, pay later customers.
Jones told the Herald that millennials were more likely to have a buy now, pay later account than a credit card.
Big names plummet as Australia's most distrusted brands revealed
The legislation will reportedly come before parliament today.
It will require providers to have an Australian credit licence, be a member of the Australian Financial Complaints Authority, and have effective dispute resolution processes.
They will also have to check new customers' financial statuses to ensure giving them credit is appropriate.
Providers also won't be able to increase credit limits without customer consent.
FOLLOW US ON WHATSAPP HERE: Stay across all the latest in breaking news, celebrity and sport via our WhatsApp channel. No comments, no algorithm and nobody can see your private details.