Australia's Department of the Treasury has released draft amendments for consultation on two regulatory reforms: increasing the amount banks can use from deceased customers' funds to pay specified estate expenses without probate or letters of administration, and raising the asset threshold for enhanced notifications under the Financial Accountability Regime (FAR). The proposals would also expressly permit payments for court filing fees associated with obtaining probate or letters of administration. The Banking Act 1959 amendments would allow authorised deposit-taking institutions (ADIs) to apply up to AUD 30,000 per deceased depositor toward permitted expenses, double the current AUD 15,000 limit, which has not increased since 1998. The changes aim to reduce expenses initially borne by executors or family members while they await access to estate assets, and delays associated with obtaining court grants. The increased limit would apply to payments made after commencement regardless of when the depositor died. Any amounts already paid under the existing provision would count toward the AUD 30,000 total. The draft FAR rules would raise the enhanced notification threshold for ADIs from total assets exceeding AUD 20 billion to total assets exceeding AUD 30 billion from July 1, 2027. This would reduce obligations for smaller ADIs to provide detailed information about personnel and organisational structure. The proposed threshold aligns with the Significant Financial Institution definition in Prudential Standard CPS 001, which changed on July 1, 2026.

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