BECS Transition

The transition away from the BECS Framework

Background

In June 2023, the Australian Government released its Strategic Plan for Australia’s Payments System, which outlined the key priorities and supporting initiatives for Australia’s payments system. One of the key priorities was modernising payments infrastructure, where the Government expressed support for an industry-led transition away from the legacy BECS Framework, in favour of more modern account-to-account payments alternatives.

In November 2023, after an extensive three-year consultation with the payments industry and key stakeholders, AusPayNet announced June 2030 as the target end-date for the BECS Framework. The aim of the target end-date was to enable greater focus on and acceleration of the transition to more modern alternatives that better meet the new and emerging needs of the end-users and the Australian payments ecosystem.

The target end-date is subject to the industry making progress in a number of areas, including but not limited to:

• use case capabilities (particularly for bulk payments made by businesses and government)
• viability and resilience of modern alternatives
• end user readiness and adoption of modern alternatives
• cost of change and ongoing cost of modern alternatives
• an industry level scope, timeline and roadmap for the transition.

The role of AusPayNet

As the custodians of the BECS Framework, AusPayNet is committed to ensuring that the transition will be managed responsibly, with no disruption to the efficient and secure flow of essential payments.

AusPayNet has established a program of work to achieve this outcome, with activities across five pillars.

Collaborate with industry

AusPayNet is collaborating with industry participants and regulators on a number of initiatives to facilitate the transition away from the BECS Framework. In addition to that, AusPayNet is working directly with BECS Members in monitoring the industry’s progress on transitioning BECS use cases off the BECS Framework. 

Consider end user perspectives

AusPayNet is considering end user perspectives on their understanding and appetite for this transition away from the BECS Framework. AusPayNet is doing this primarily through its BECS Members who are responsible for managing the transition with their customers, and also directly through its Stakeholder Advisory Council, which has representatives from government agencies and departments as well as small business, merchant and consumer interest groups.

Coordinate the program

AusPayNet recognises that a successful decommissioning of BECS will benefit from coordination between industry participants (including those that may be considered competitors) and will lead industry-wide coordination to develop a common vision for the future of account-to-account payment systems in Australia, subject to regulatory approvals.
 

Control the future of the framework

AusPayNet will continually test the validity of the target end-date based on industry’s progress to transition BECS use cases off the BECS Framework. The target end-date will be reviewed every six months, taking into consideration the progress and outcomes of all the industry initiatives for the migration away from the BECS Framework. 

Communicate with members and stakeholders

AusPayNet has developed and implemented a plan for regular updates to BECS Members and stakeholders on the progress of the program. Communications follow every Board meeting and take the form of virtual briefings, memos, and bilateral meetings for BECS Members. In terms of key stakeholders, AusPayNet has regular meetings and communications with Treasury, the RBA, ASIC, APRA, and the ABA. 
 

If you have any questions, please contact the Head of Transition Programs.
 

Program Updates 

Contact

If you have any questions, please contact the Head of Transition Programs.

Resources