Policy Update September #1

NEW CONSULTATIONS

ASIC regulatory simplification consultation

ASIC is consulting on how it can simplify regulation and ease the regulatory burden on companies.

We are asking members to share proposals for red tape reduction, with an emphasis on proposal which ASIC can easily implement. For example, changes to regulatory portals, updates to regulatory guides, and suggestions for how regulatory processes may be conducted more efficiently.

Consultations close on 15 October 2025. FinTech Australia intends to make a submission. Please contact our Policy Team if you wish to provide feedback.

Strategic Examination of Research and Development: issues papers

The Department of Industry, Resources and Science has released issues papers on research, development and innovation (RD&I):

1. a potential model for national coordination of research, development and innovation.

2. scaling the system: A proactive approach to scaling the RD&I system.

3. RD&I incentives.

The first consultation focuses on addressing Australia's fragmented approach to RDI by:

• Making long-term RDI more targeted to focus on key priorities;

• Consolidating public investment to support these priorities;

• Introducing national coordination mechanisms;

• Setting foundational enablers for RDI; and

• Setting an evaluation framework.

The second consultation focuses on how greater value can be generated from Australia's RD&I.

The third consultation investigates ways that economic incentives can be used to deliver significant economic impact.

Consultations close on 30 September 2025. FinTech Australia will making a submission with the assistance of our policy partner DLA Piper. Please contact our Policy Team if you wish to provide feedback.

Draft OAIC guidance on AML/CTF privacy requirements

The Office of the Australian Information Commissioner is consulting on draft privacy guidance related to the commencement of new AML/CTF privacy requirements. The draft guidance covers the application of the Privacy Act to information collected by reporting entities in the course of complying with their AML/CTF Act obligations.

Consultations close on 30 September 2025. FinTech Australia does not intend to make a submission.

AML/CTF regulation on proliferation financing

AUSTRAC is consulting on draft regulations to define “proliferation financing” under the AML/CTF Act. The proposed definition would take effect from 31 March 2026.

Consultations close on 3 October 2025. FinTech Australia does not intend to make a submission.

OTHER NEWS

• The Federal Parliament has passed significant reforms to the Payment Systems (Regulation) Act 1998 which expand the jurisdiction of the RBA to regulate new payment systems and participants. The reforms were amended to allow for the disallowance of certain legislative instruments under the new provisions.

• The High Court has agreed to hear an appeal from ASIC on the recent judgment in the Block Earner decision. This may have significant implications for the definition of a financial product as well as the jurisdiction of ASIC.

• The Treasurer has released letters from 38 regulators setting out ideas for reforms to boost productivity and reduce the regulatory burden on the economy.

• AUSTRAC has released its new Anti-Money Laundering and Counter-Terrorism Financing Rules, which will commence in 2026. The new rules provide supplementary detail to the provisions in the recently amended AML/CTF Act.

• The NSW Government has opened grant applications for its Minimum Viable Product Ventures Program, which helps bring innovative products to market. Round 1 applications close on 28 September 2025.

WE ARE WORKING ON SUBMISSIONS TO THESE CONSULTATIONS

1. Productivity Commission inquiry into harnessing data and digital technology (with the assistance of our policy partner, Ashurst);

2. ASIC’s regulatory simplification project; and

3. Several issues papers connected to the Strategic Examination of Research and Development. 

WE RECENTLY MADE SUBMISSIONS TO THESE CONSULTATIONS

1. RBA's Merchant Card Payment Costs and Surcharging (with the assistance of our policy partner, K&L Gates);

2. Cyber Security Strategy – Horizon 2 Policy Discussion Paper;

3. Treasury's Compensation Scheme of Last Resort special levy consultation;

4. ACCC's unsolicited Selling and Lead Generation Review; and

5. The Treasurer's Economic Reform Roundtable. 

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.