Document ID: chunk:federal_register_of_legislation:F2019N00027:body:0:p10
Version: federal_register_of_legislation:F2019N00027
Segment Type: other
Provision Reference: 
Character Range: 23949–26697

supplying relevant property or services, any discount or deduction from that price that meets the incentive test is a benefit to be included in Issuer Receipts.

Proposal 5:
Clarify the standards with the effect that where property or services are supplied and there is not a price at which the supplier is regularly supplying the relevant property or services, the benefit to be included in Issuer Receipts, subject to the incentive test, is the amount by which the fair value of the property or services exceeds what is paid for the property or services (and if nothing is paid, then the full fair value is to be included).

Entities providing Issuer Receipts
The standards currently do not limit the types of entities from which an issuer can receive an Issuer Receipt. This was intended to ensure that any benefits provided by entities separate from but related to a scheme were appropriately captured. In practice, the broad scope of the definition is unlikely to be a major complication as issuers are unlikely to receive benefits related to card issuance or use from entities unrelated to a scheme. However, some feedback was received suggesting that clarification of the possible sources of Issuer Receipts would be useful. Accordingly, the Bank proposes to narrow the definition of Issuer Receipts to include only benefits provided directly or indirectly from a Scheme Administrator or any of its associated entities, with the definition of associated entity drawn from the Corporations Act 2001.[20] [21]
The proposed definition of Issuer Receipts continues to recognise that incentives can be provided both directly and indirectly (via a third party) to an issuer. Under both the current and proposed definitions of Issuer Receipts, if a benefit provided directly to an issuer meets the test to be included in Issuer Receipts, it would still be included in Issuer Receipts if it was instead provided indirectly by way of a third party. A key factor to consider under the proposed definition is whether the source (or the ultimate funder) of the incentive is the administrator of a scheme or one of its associated entities. One example of an Issuer Receipt provided indirectly is where an issuer receives a payment or rebate from a brand or affinity partner to contribute to a marketing campaign designed to incentivise the use of the cards of the scheme, where this payment or rebate has been funded by a payment or other benefit from the scheme to the brand or affinity partner.[22]

Proposal 6:
Clarify that the types of entity that an issuer can receive an Issuer Receipt from include associated entities of scheme administrators, drawing on the definition of Associated Entity in the Corporations Act 2001.

Definition of