Australian Prudential Regulation Authority publishes letters outlining nine actions to improve regulatory efficiency while maintaining financial stability

The Australian Prudential Regulation Authority (APRA) published two letters it sent to Treasurer Jim Chalmers and Finance Minister Katy Gallagher setting out nine actions intended to support productivity while maintaining the strength and stability of the financial system. The package is framed around improving regulatory efficiency and transparency without compromising prudential safety objectives. Actions already in consultation include reforms to the banking licensing regime, life insurers’ capital requirements, and general insurers’ reinsurance settings. For banks, APRA plans to implement capital adjustments, changes to capital modelling and proportionality measures in the second half of 2025, with some effects expected to accrue over time. Cross-industry work includes a consultation on removing duplicative rules in the first half of 2026 and a data reporting initiative scheduled to be completed by December 2027, alongside a payments coordination action with timing dependent on Government. APRA indicated further detail on the actions is set out in its Corporate Plan, with the next milestones driven by the ongoing consultations, the planned second-half 2025 bank implementation measures, the first-half 2026 consultation on duplicative rules and the December 2027 endpoint for data reporting work.