Policy Update — October 2025 #2
NEW CONSULTATIONS
Treasury exposure draft on PSP licensing
Treasury has released tranche 1(a) of draft legislation to implement a payment service providers licensing scheme, which captures stablecoins among other activities.
This tranche of reforms will set the foundations for the new payments regulatory framework by:
requiring PSPs that perform certain functions to obtain an Australian Financial Services licence;
creating new APRA powers for major stored value facility (SVF) providers (including major tokenised SVF providers) and designated PSPs; and
establishing a rule-making power to enable introduction of a mandatory, revised ePayments code.
Consultations close on 6 November 2025. FinTech Australia intends to make a submission. Please contact our Policy Team if you wish to provide feedback.
Mandating cash acceptance
Treasury has released an exposure draft for reforms that mandate cash acceptance by grocery and fuel retailers via mandatory industry codes. An exemption for small businesses applies.
Consultations close on 31 October 2025. FinTech Australia does not intend to make a submission. Please contact our Policy Team if you wish to provide feedback.
Revisions to alternative reinsurance arrangements for general insurance
APRA has released a response paper setting out revisions to its proposed updates to the general insurance reinsurance framework. The changes are designed to facilitate easier access to reinsurance.
Consultations close on 30 January 2026. FinTech Australia does not intend to make a submission. Please contact our Policy Team if you wish to provide feedback.
OTHER NEWS
All: Treasury has released its updated Regulatory Initiatives Grid, which sets out forecast policy and regulatory initiatives from Q4 2025 to Q3 2027. The grid captures policy initiatives from the Treasury as well as ASIC, APRA, ACCC, RBA, ATO, DSB, AUSTRAC and the AFSA. This is a very useful tool for forward planning and is updated twice yearly.
All: The Government has signalled that further policy work will commence on a beneficial ownership register from early 2027, while other enabling steps are actioned first.
AML/CTF: AUSTRAC has released new guidance to help current and future reporting entities comply with changes to AML/CTF laws.
Payday superannuation: On 9 October the Government introduced legislation to require superannuation to be paid on their employees’ payday. If passed, this will take effect from 1 July 2026.
ASIC: ASIC’s newly released 2024-25 annual report indicates the regulator has significantly increased its focus on investigations, targeted surveillances and civil enforcement proceedings.
AFSL-holders: An ASIC review of AFSL-holders using offshore service providers has found significant inconsistencies in the quality of risk management arrangements (the review focused on responsible entities and financial advice licensees). ASIC is taking this opportunity to remind AFSL-holders that they can outsource services but cannot outsources their legal responsibilities.
Auditing: ASIC has updated Regulatory Guide 260 Communicating findings from audit files to directors, audit committees or senior managers (RG 260) to reflect amendments to ASIC’s powers with respect to registrable superannuation entities and their trustees.
Mergers: The Government has announced it will refine notification requirements under the new mergers regime by expanding existing exemptions for financial market activities, exempting most leases, simplifying asset acquisition thresholds, streamline serial acquisitions by altering notification obligations.
Lending: ASIC Commissioner Alan Kirkland has flagged that the regulator is currently focusing on ensuring lenders, mortgage brokers, credit repair and debt collection companies are complying with consumer credit protections.
Insurance: ASIC Commissioner Alan Kirkland has flagged that in the next year ASIC will (1) examine the accuracy and transparency of premiums, especially the communication of car insurance premiums to consumers; and (2) the adequacy of cash settlement offers across the industry.
Cyber: The Australian Signals Directorate has released guidance for the protection of critical infrastructure against state-sponsored cyber actors.
Cyber: The Australian Signals Directorate has released its Annual Cyber Threat Report. The ASD recommends businesses: (1) implement best-practice logging; (2) replace legacy technology; (3) manage third-party risk; and (4) prepare for post-quantum cryptography.
Cyber: The Australian Cyber Security Centre has released advice on how to manage shared responsibility for cybersecurity when dealing with cloud service providers. Advice is available for: (1) individuals, small and medium-sized businesses; and (2) executives in government, critical infrastructure and large organisations.
Artificial intelligence: The Digital Transformation Agency has released guidance for Federal Government employees on the safe and responsible use of AI tools.
IPOs: ASIC has approved an application by Cboe Australia to enable Cboe to list new companies, in direct competition with the ASX, NSX and SSX.
SENATE ESTIMATES TRANSCRIPTS
The Senate Economics Committee recently held Estimates hearings for the:
Treasury, ASIC, ACCC, APRA, ABS, ATO and other regulators (9 October); and
RBA and Productivity Commission (10 October).
WE ARE WORKING ON SUBMISSIONS TO THESE CONSULTATIONS
Treasury’s exposure draft on payment service provider licensing;
Treasury's exposure draft on digital asset & tokenised custody platforms licensing; and
WE RECENTLY MADE SUBMISSIONS TO THESE CONSULTATIONS
Treasury’s targeted consultation on changes to the CDR (public release pending);
See other FinTech Australia submissions on our website.
Members interested in contributing any of the submissions should reach out to our Policy Team.
FinTech Australia regularly makes submissions to consultations across a wide range of policy and regulatory issues. Communications about how to get involved in these processes are distributed to our Policy Working Group membership. If you would like to be added to a distribution list for this, please contact our Policy Team.
