Policy Update - January #1

Regulatory Grid for Financial Services

The Government has introduced a new tool, the Regulatory Impact Guide (RIG), designed to provide clear insights into upcoming regulatory changes that will materially affect financial service providers over the next two years. The RIG covers key initiatives from major regulatory agencies, including:

• Australian Securities and Investments Commission (ASIC)

• the Australian Prudential Regulation Authority (APRA)

• the Australian Competition and Consumer Commission (ACCC)

• the Reserve Bank of Australia (RBA)

• the Australian Taxation Office (ATO)

• Australian Transaction Reports and Analysis Centre (AUSTRAC) and

• the Australian Financial Security Authority (AFSA).

Although the grid should help members navigate the regulatory environment, it is not exhaustive and should be complemented by advice from legal professionals or direct consultation with relevant regulatory bodies.

AUSTRAC 2024 compliance report is now open – it’s time to get started

All businesses regulated under anti-money laundering and counter-terrorism financing (AML/CTF) laws are required to submit an annual compliance report to AUSTRAC. You can find out more information about the AUSTRAC compliance report here, including instructions on how to submit.

The 2024 compliance report covers businesses' activities during the 2024 calendar year and must be submitted via AUSTRAC Online by 11:59 pm on 31 March 2025. If you have questions about the compliance report, members can visit AUSTRAC’s compliance report page or email contact@austrac.gov.au

Productivity Enquiry Consultation

The Government has formally tasked the Productivity Commission with five new inquiries aimed at identifying ways to significantly enhance Australia’s productivity. Each inquiry will focus on one of the five key pillars of the Government’s productivity agenda:

• Creating a more dynamic and resilient economy

• Building a skilled and adaptable workforce

• Harnessing data and digital technology

• Delivering quality care more efficiently

• Investing in cheaper, cleaner energy and supporting the net zero transformation

The inquiries are scheduled to run for 12 months, with preliminary recommendations for productivity-enhancing reforms expected in mid-2025. FinTech Australia will closely monitor these inquiries and provide updates to members as they commence.

Treasury's Mandating cash acceptance consultation

The Treasury has released a consultation paper seeking feedback on a proposed mandate requiring businesses to accept cash for the sale of essential items. The consultation paper explores:

• Defining essential goods and services to ensure cash remains an option for accessing basic necessities.

• Determining which businesses the mandate should apply to.

• Additional features, such as transaction caps or time limits, to ensure the mandate is practical for both businesses, especially small businesses, and consumers.

The consultation period closes on 14 February 2025. While FinTech Australia does not intend to make a submission, if members wish to participate in the consultation, please contact policy@fintechaustralia.org.au.

Other news:

New Appointments to the RBA

The Government has announced key appointments to the RBA across critical areas:

• Monetary Policy Board: Ms. Marnie Baker and Professor Renée Fry-McKibbin have been appointed as members.

• Governance Board: Ms. Jennifer Westacott AO, Mr. David Thodey AO, Mr. Danny Gilbert AM, and Ms. Swati Dave have been appointed as members.

In addition, the RBA has announced two significant internal appointments:

• Sarah Brown has been appointed as the Head of Banking.

• Daniel Rees has been appointed as the Head of Economic Research.

New data standards chair for digital ID and consumer data rights

The Government has appointed Dr Ian Oppermann as the Data Standards Chair for Digital ID and Consumer Data Right (CDR) for a two‑year period (beginning on 1 March 2025).

Small business support and resources

The Government has announced an investment of $10.8 million over 18 months to support small business owners through the Small Business Debt Helpline and the NewAccess for Small Business Owners programs, commencing on 1 January 2025. 



FinTech Australia encourages members to familiarise themselves with these resources and programs, in case they are of interest.

We are working on these submissions:

• Public consultation on new AML/CTF Rules: FinTech Australia will make a submission and circulate a draft to our Policy Working Group to help shape our submission before the consultation closes on 14 February 2025.

• Consultation Paper 381 (CP 381): Updates to INFO 225: Digital Assets: Financial Products and Services: FinTech Australia will be making a submission and will reach out to members through our policy working groups to participate before the submission deadline of 28 February 2025.

• 2025–26 Pre-Budget Submission: We will share a draft pre-budget submission in due course for member input and feedback.

We recently made submissions on:

1. Review of Merchant Card Payment Costs and Surcharging - Issues Paper

2. Consumer Data Right Rules – Non-Bank Lending and Banking Data Scope Consultation

3. Scams Prevention Framework - Exposure Draft legislation

4. Introducing Mandatory Guardrails for AI in High-risk Settings

5. Senate Inquiry into Home Ownership

6. CDR Rules: Consent and Operational Enhancement Amendments Consultation

See our recent submissions on our website.

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.