{"id":"BILL-r7409","name":"Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025","slug":"treasury-laws-amendment-genetic-testing-protections-in-life-insurance-and-other-measures-bill-2025","collection":"bill","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":446036,"registerId":"commonwealth-BILL-r7409-current","compilationNumber":null,"startDate":"2026-05-05","status":"royal_assent","reasons":null,"registeredAt":null},"sections":[],"analysis":{"summary":{"status_summary":"The bill received royal assent on 8 April 2026 becoming Act No. 35 of 2026.","complexity_score":4,"likely_questions":["What information is covered by the genetic testing protections?","When do the different parts of the Act commence?"],"complexity_factors":["Multiple schedules amending different legislation","New offence and civil penalty provisions with consent exceptions"],"plain_english_summary":"The Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 makes changes to Australian laws in four main areas. It introduces a prohibition on life insurers using certain genetic testing information when offering or setting terms for life insurance policies. It also provides exemptions from licensing requirements for some foreign financial services providers. The bill standardises rules for Australia's payments to multilateral development banks and the International Monetary Fund. Finally, it removes a planned annual registration requirement for financial advisers.\n\nUnder the new rules in the Insurance Contracts Act 1984, insurers cannot take into account protected genetic information about an individual or their genetic relatives when making life insurance contract decisions. This includes information on whether genetic testing has occurred or the results of such tests. Life insurance contract decisions cover whether to offer cover, the terms of that cover, and any extensions or variations to existing policies. The prohibition applies to underwriting assessments used to inform these decisions.\n\nThere is an exception where the person being insured, their treating medical practitioner or their agent gives written consent to provide the information. The consent must not have been solicited by the insurer, and the use of the information must not disadvantage the insured person or any beneficiaries. The bill also updates the Disability Discrimination Act 1992 so that discrimination based on protected genetic information in life insurance is not considered reasonable. Provisions require regular reviews of the genetic testing rules every five years after commencement.\n\nThe Corporations Act 2001 is amended to exempt certain foreign financial services providers from needing an Australian financial services licence when dealing with professional investors or wholesale clients, provided they meet conditions such as being regulated by comparable overseas authorities. A fast-track licensing option exempts some foreign applicants from the fit and proper person test when applying for a licence limited to wholesale clients.\n\nAmendments to several acts create special appropriations for Australia's ongoing contributions to multilateral development banks and the International Monetary Fund. This allows payments to meet financial obligations without needing additional approval each time. The bill repeals the requirement that individual financial advisers register themselves with the Australian Securities and Investments Commission each year, a measure that was scheduled to begin on 1 July 2026. It also repeals nine other acts and one regulation.\n\nThe genetic testing protections commence six months after royal assent. The foreign financial services provider exemptions commence twelve months after assent. The multilateral development bank amendments commence the day after assent. The repeal of the financial adviser registration requirement commences on 30 June 2026. The bill received royal assent on 8 April 2026 and is now law."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"The Act bundles multiple, discrete measures under a single title (genetic testing protections plus \"other measures\"). That bundling matches the Bill’s stated purpose and explanatory material: it was intended to legislate the genetic testing prohibition and also to address several unrelated technical and regulatory matters (FFSP licensing, MDB/IMF appropriations, and repeal of Stage 2 adviser registration). The enacted text does not materially expand beyond the range of objectives set out in the Bill and its explanatory memorandum; it does not add a substantial new policy area outside those announced purposes, although the scope and operational details are shaped by delegated instruments and regulatory conditions (noted above)."},"complexity_factors":["Four distinct policy areas bundled in one Act (genetic testing + FFSP licensing + MDB/IMF appropriations + repeal of adviser registration)","Multiple new defined terms inserted into existing Acts (e.g. clinical diagnosis, disease, genetic testing, protected genetic information, life insurance contract decision, solicit) across Insurance Contracts Act and Corporations Act","Strict liability criminal offence plus large civil penalty for the same conduct (section 33H), with an evidential burden on defendants (cross‑references to Criminal Code)","Numerous conditional rules and exceptions (consent exception, clinical diagnosis carve‑outs, regulatory exceptions in regulations)","Extensive cross‑referencing to other statutes and instruments (Criminal Code, Crimes Act penalty unit indexing, Corporations Act Part 7.6, Acts Interpretation Act)","Significant delegated powers and disallowable legislative instruments (Minister may determine 'comparable regulators' under section 911W; regulations may limit exemptions under 911F; ASIC has powers to approve forms, impose or cancel conditions)","Detailed procedural and notification requirements with short time windows and approved‑form rules (e.g. 15 business‑day windows in subsections 911A(5AA)–(5AD), 911H(4))","Transitional and commencement complexity (staged start dates, transitional rules for existing insurance contracts and prior exemptions; Part 10.65 transitional provisions for Corporations Act)","MDB amendments that incorporate treaties 'as in force for Australia from time to time' and introduce standing appropriations, plus delegation to Treasury/Treasurer to issue securities — legal and parliamentary oversight implications","Repeals of multiple legacy Acts and a regulation (Schedule 3 Part 2) which require careful transitional saving provisions to preserve existing agreements and securities"],"plain_english_summary":"**What this Act does (mechanics first)\n\n- Creates a legal ban on life insurers using most genetic testing information when deciding whether to offer life cover, the terms of that cover, or whether to vary/reinstate policies (Insurance Contracts Act amendments; see new Division 5, esp. sections 33E–33H).  The ban:  \n  - defines \"protected genetic information\" (section 33F) to include whether someone (or a blood relative) has had, intends to have, or was recommended to have genetic testing and the results of such testing;  \n  - excludes ordinary clinical diagnoses and related clinical information from that protection in many cases (so diagnosed conditions can still be considered);  \n  - makes it an offence of strict liability for an insurer to take protected genetic information into account in life‑insurance underwriting (section 33H(1); penalty 60 penalty units) and separately creates a civil penalty for the same conduct (section 33H(2); 5,000 penalty units, subject to higher corporate penalties where applicable);  \n  - provides a narrow consent exception where the insured (or an authorised treating practitioner or agent) voluntarily gives the information without solicitation, in writing and in an approved form if one exists, and the insurer’s use of it does not disadvantage the insured (see section 33H(3) and ASIC power to approve consent forms under subsection 33H(4)); and  \n  - adds a statutory review requirement every five years to check whether the rules are working and to surface unintended consequences (section 33J).\n\n- Changes insurer/insured disclosure rules so failing to disclose protected genetic information is not a misrepresentation or a duty of disclosure for life insurance (new subsection 20B(5A), 21(3A) and new section 25A). It also adjusts the pre‑existing sickness/condition rules (section 47) so genetic predispositions without clinical diagnosis are generally disregarded when asking whether an insured was aware of a condition at the time of contract (see subsection 47(4)).\n\n- Adds licensing exemptions in the Corporations Act for certain foreign financial services providers (FFSPs) so they can provide services to Australian wholesale or professional investors from overseas without holding an Australian financial services (AFS) licence (new paragraphs 911A(2)(eo), (ep), (eq)). Key features:  \n  - a \"professional investor\" exemption for services provided only to professional investors from outside Australia (subject to limited marketing‑visit rules, notification to ASIC and conditions);  \n  - a \"comparable regulator\" exemption for FFSPs regulated overseas by a regulator the Minister lists as \"comparable\" (new subsection 911W(1)); and  \n  - a market‑maker exemption for certain derivatives market‑making activity.  \n  - Exemptions carry conditions (assistance to ASIC, notice to recipients, local agent requirements in some cases, submission to Australian courts for enforcement brought by ASIC, etc.), ASIC may impose additional conditions or cancel exemptions, and contravening conditions can attract civil penalties (see sections 911G–911U).  \n  - The Act also exempts certain FFSP applicants from the \"fit and proper person\" test when applying for an AFS licence if they are regulated by a Minister‑determined comparable regulator (new subsection 913B(2A) and 914B(2A)).\n\n- Standardises and modernises how Australia meets financial obligations to multilateral development banks (MDBs) and the IMF (Schedule 3). Mechanically this:  \n  - inserts a uniform definition of \"relevant financial obligation\" into several MDB Acts (e.g. Asian Development Bank Act, Asian Infrastructure Investment Bank Act, IFC Act, MIGA Act);  \n  - creates standing appropriations authorising payments from the Consolidated Revenue Fund to meet those obligations (so separate annual appropriation is not needed each time);  \n  - allows the Treasurer/Minister to issue non‑negotiable, non‑interest‑bearing promissory notes or similar securities (and to delegate that power) where the MDB will accept securities instead of cash; and  \n  - incorporates some international agreements \"as in force for Australia from time to time\" by reference (reducing the need to reprint treaty text in domestic Acts).\n\n- Repeals the planned Stage 2 individual financial‑adviser annual registration requirement that would have required advisers to register with ASIC each year (Schedule 4). Stage 1 (licensee registration of advisers) remains.\n\nWho is affected\n\n- People who have had, will have, or are recommended to have genetic testing (and their genetic relatives): they cannot generally be disadvantaged in life‑insurance decisions on the basis of that testing information (see sections 33E–33F and 33H).  \n- Life insurers and underwriters: barred from soliciting or using protected genetic information for underwriting (section 33H); breach can trigger criminal strict liability and/or civil penalties.  \n- Treating medical practitioners and authorised agents: may supply genetic information only in ways that meet the consent exception if they are to be relied on by insurers (section 33H(3)).  \n- Consumers considering clinical genetic testing: the law explicitly aims to reduce insurance‑related barriers to getting tested (official rationale).  \n- Foreign financial services providers (FFSPs): certain overseas firms gain clearer exemptions from needing an AFS licence or from the fit‑and‑proper test when dealing with Australian professional or wholesale investors (new paragraphs 911A(2)(eo),(ep),(eq); subsections 913B(2A), 914B(2A)).  \n- ASIC and the Treasurer/Minister: get new supervisory, cancellation and legislative‑instrument powers to manage FFSP exemptions and MDB obligations (see sections 911H–911S and section 911W; MDB schedules).  \n- Financial advisers: will not have to do an annual Stage 2 registration from 1 July 2026 (Schedule 4 repeal).\n\nWhy it matters (official rationale then practical trade‑offs)\n\n- Officially: the genetic testing rules are intended to remove a disincentive to clinical genetic testing and genetic research by stopping insurers using adverse predictive test results; FFSP exemptions are intended to improve Australian investors' access to global financial services and reduce duplicate regulation; MDB amendments modernise how Australia meets international commitments; and the Stage 2 repeal reduces regulatory burden on advisers.\n\n- Trade‑offs, incentives and implementation risks (concrete mechanisms):\n  - Adverse selection risk: by preventing insurers from using predictive genetic test information (but allowing use of clinical diagnoses), the Act increases information asymmetry between applicants and insurers for some conditions. The Explanatory Memorandum flags this could push insurers to change offerings or prices (section 33H and review requirement in 33J), but the law tries to limit the risk by preserving use of diagnosed disease information and family medical history in many contexts (see subsections 33F(2) and 47(4)).  \n  - Enforcement design: the genetic prohibition is a strict‑liability criminal offence (section 33H(1)) — which reduces prosecutorial proof burdens but places an evidential burden on defendants (Criminal Code cross‑reference noted in the Act). That design raises compliance and legal‑risk costs for insurers and underwriters (possible prosecutions, large civil fines).  \n  - Compliance and administration: insurers must change underwriting processes, record keeping and staff training to avoid soliciting or using protected genetic information; ASIC may need new supervisory activity for consent forms and approved instruments (sections 33H(3)–(4)).  \n  - Regulatory discretion and parliamentary oversight: Schedule 2 gives the Minister power to list \"comparable regulators\" by legislative instrument (section 911W). That instrument is subject to disallowance (so parliamentary oversight exists) but the power lets delegated law modify the practical scope of primary‑law exemptions — a point the Senate scrutiny committee previously highlighted. The regulations may also carve out exceptions to the professional‑investor exemption (section 911F), another delegated‑law leverage point.  \n  - Cross‑border enforcement gap: FFSP exemptions reduce licensing friction but increase ASIC’s reliance on information‑sharing and on the quality of overseas regulators (conditions such as consent to share information, local agent, notification of enforcement actions — see sections 911N, 911P). Where misconduct occurs, remedies may be more fragmented than against an Australian AFS licensee.  \n  - Administrative burden for FFSPs: new notification windows, approved‑form requirements, 15‑business‑day notice periods to ASIC, and conditions about assistance and local agents create procedural compliance costs (see subsections 911A(5AA)–(5AD), 911H–911P).  \n  - MDB appropriations and treaty incorporation: creating standing appropriations and allowing incorporation of international agreements by reference streamlines Australia’s ability to meet MDB obligations and issue securities, but it reduces the need for frequent separate appropriation bills and can limit the visibility of future monetary commitments unless Ministers use the disallowance process for notices (see Schedule 3, e.g. section 3A and appropriation provisions).\n\nWho pays, who decides, and what behaviour changes\n\n- Who pays:  \n  - Insurers bear the direct compliance and legal‑risk costs of the genetic ban (process changes, training, possible penalties).  \n  - Policyholders/consumers may indirectly pay (if adverse selection materialises, insurers could change product design or pricing); conversely some consumers may face lower non‑insurance costs to obtain clinical testing.  \n  - FFSPs save on licensing costs if they meet exemption conditions; ASIC and Treasury bear administrative costs of oversight.  \n- Who decides:  \n  - Insurers make underwriting decisions but subject to the statutory ban (s33H) and ASIC supervision.  \n  - ASIC decides on conditions, approved forms, cancellations and can require information or impose additional conditions (see 911J, 911R–911U).  \n  - The Minister determines \"comparable regulators\" by legislative instrument (section 911W) and may exclude particular obligations for MDB appropriations by instrument (Schedule 3).  \n- Behaviour changes required:  \n  - Insurers must stop soliciting/using protected genetic information and update disclosure and underwriting practices.  \n  - Individuals and treating practitioners can choose whether to volunteer genetic information but insurers cannot base underwriting on it unless the narrow consent rules are met.  \n  - FFSPs that want to serve Australian wholesale/professional investors may restructure operations to rely on exemptions (notifying ASIC, appointing local agents, consenting to information sharing).  \n\nKey implementation features to watch (concrete markers)\n\n- Timing: Schedule 1 (genetic protections) commences 6 months after Royal Assent (application rules for existing contracts are limited and set out in the Act); Schedule 2 (FFSP exemptions) commences 12 months after Royal Assent; Schedule 3 (MDB changes) commences immediately; Schedule 4 (repeal of Stage 2 adviser registration) commences 30 June 2026 (see commencement table).  \n- Review and monitoring: the Minister must table five‑yearly reviews of the genetic provisions (section 33J).  \n- Delegated instruments: look for the Minister’s list of comparable regulators (section 911W instruments), ASIC approved forms and notices, and any regulations that narrow exemptions (section 911F), all of which will materially shape how the exemptions operate on the ground.  \n\nSelected section references:  \n- Definition and ban: sections 33E–33H (Insurance Contracts Act amendments).  \n- Disclosure and misrepresentation amendments: subsections 20B(5A), 21(3A), new section 25A, and subsection 47(4).  \n- FFSP exemptions and conditions: paragraphs 911A(2)(eo), (ep), (eq); sections 911G–911U; Ministerial instrument power 911W; fit and proper exemptions 913B(2A), 914B(2A).  \n- MDB appropriations and securities: Schedule 3 (various sections such as new \"relevant financial obligation\" definitions and appropriation clauses).  \n\nBottom line (neutral): the Act establishes a firm legal bar on use of most genetic testing information in life‑insurance underwriting (with a narrow consent carve‑out and statutory five‑year reviews), creates a new primary‑law framework to let certain overseas financial firms serve wholesale/professional Australian clients without an AFS licence (subject to conditions and ministerial/ASIC oversight), modernises Australia’s MDB/IMF appropriation and securities powers, and removes a scheduled onerous annual registration step for individual financial advisers. These changes reduce some regulatory frictions (FFSP access, adviser red tape, MDB payment mechanics) while shifting compliance, enforcement and adverse‑selection risks into the statutory and administrative architecture (see sections cited above)."}},"importantCases":[],"_links":{"self":"/api/acts/treasury-laws-amendment-genetic-testing-protections-in-life-insurance-and-other-measures-bill-2025","history":"/api/acts/treasury-laws-amendment-genetic-testing-protections-in-life-insurance-and-other-measures-bill-2025/history","analysis":"/api/acts/treasury-laws-amendment-genetic-testing-protections-in-life-insurance-and-other-measures-bill-2025/analysis","conflicts":"/api/acts/treasury-laws-amendment-genetic-testing-protections-in-life-insurance-and-other-measures-bill-2025/conflicts","importantCases":"/api/acts/treasury-laws-amendment-genetic-testing-protections-in-life-insurance-and-other-measures-bill-2025/important-cases","documents":"/api/acts/treasury-laws-amendment-genetic-testing-protections-in-life-insurance-and-other-measures-bill-2025/documents"}}