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:
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;
excludes ordinary clinical diagnoses and related clinical information from that protection in many cases (so diagnosed conditions can still be considered);
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);
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
adds a statutory review requirement every five years to check whether the rules are working and to surface unintended consequences (section 33J).
The Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026 (the Act) amends the Insurance Contracts Act 1984 by inserting a new Division 5 into Part IV. This Division defines genetic testing in section 33E, protected genetic information in section 33F and solicit in section 33G. It prohibits insurers from using protected genetic information in life insurance underwriting through a strict liability offence and civil penalty provision in section 33H. Related changes appear in the Disability Discrimination Act 1992 at subsection 46(3), which deems discrimination based on protected genetic information unreasonable for life insurance policies. Amendments to sections 20B, 21, 25A and 47 of the Insurance Contracts Act 1984 clarify that non-disclosure of protected genetic information does not constitute misrepresentation and adjust pre-existing condition rules for genetic predispositions. Schedule 2 inserts paragraphs 911A(2)(eo), (ep) and (eq) into the Corporations Act 2001 to create licensing exemptions for foreign financial services providers dealing with professional investors, wholesale clients regulated by comparable overseas regulators, and market makers for certain derivatives. It also adds Subdivision B containing conditions in sections 911E to 911W, ASIC cancellation powers in sections 911R to 911S and a fast-track licensing exemption from the fit and proper person test in subsections 913B(2A) and 914B(2A). Schedule 3 introduces standardised special appropriation provisions and definitions of relevant financial obligation into the Asian Development Bank Act 1966, Asian Infrastructure Investment Bank Act 2015, European Bank for Reconstruction and Development Act 1990, International Finance Corporation Act 1955, International Monetary Agreements Act 1947, International Monetary Agreements Act 1960 and Multilateral Investment Guarantee Agency Act 1997. It repeals nine older Acts listed in Part 2 Division 1 of Schedule 3 and the European Bank for Reconstruction and Development Regulation 2012. Schedule 4 repeals Schedule 2 and its commencement item from the Financial Sector Reform (Hayne Royal Commission Response, Better Advice) Act 2021, preventing the Stage 2 individual annual registration requirement for financial advisers from commencing on 1 July 2026. Commencement dates are staggered: Schedule 3 the day after royal assent, Schedule 4 on 30 June 2026, Schedule 1 six months after assent and Schedule 2 twelve months after assent.
Official source available
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Amends: the Insurance Contracts Act 1984 to establish a ban which prohibits insurers from using certain information about an individual’s genetic testing to inform the offer of life insurance cover, or the terms and conditions of the cover that is offered; the Disability Discrimination Act 1992 to align Australia’s anti-discrimination law with the ban; the Corporations Act 2001 to provide four licensing exemptions for foreign financial services providers; 7 Acts to support Australia’s continuing participation with multilateral development banks (MDBs) and the International Monetary Fund by introducing special appropriations for current and future financial obligations to MDBs, enabling the delegation of certain powers, ensuring payments consistent with existing obligations can be made without additional ministerial approval, and making technical amendments; and the Financial Sector Reform (Hayne Royal Commission Response,Better Advice) Act 2021 to remove the requirement that individual financial advisers register themselves with the Australian Securities and Investments Commission annually from 1 July 2026. Also repeals 9 Acts and the European Bank for Reconstruction and Development Regulation 2012.
Parliamentary progress
Progress
House of Representatives
Introduced and read a first time
26 Nov 2025
Second reading moved
26 Nov 2025
Second reading debate
23 Mar 2026
Second reading debate
25 Mar 2026
Second reading agreed to
25 Mar 2026
Consideration in detail debate
25 Mar 2026
Third reading agreed to
25 Mar 2026
Senate
Introduced and read a first time
25 Mar 2026
Second reading moved
25 Mar 2026
Second reading agreed to
01 Apr 2026
Third reading agreed to
01 Apr 2026
Finally passed both Houses
01 Apr 2026
Assent
Act no: 35
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)).
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:
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);
a "comparable regulator" exemption for FFSPs regulated overseas by a regulator the Minister lists as "comparable" (new subsection 911W(1)); and
a market‑maker exemption for certain derivatives market‑making activity.
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).
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)).
Standardises and modernises how Australia meets financial obligations to multilateral development banks (MDBs) and the IMF (Schedule 3). Mechanically this:
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);
creates standing appropriations authorising payments from the Consolidated Revenue Fund to meet those obligations (so separate annual appropriation is not needed each time);
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
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).
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.
Who is affected
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).
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.
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)).
Consumers considering clinical genetic testing: the law explicitly aims to reduce insurance‑related barriers to getting tested (official rationale).
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)).
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).
Financial advisers: will not have to do an annual Stage 2 registration from 1 July 2026 (Schedule 4 repeal).
Why it matters (official rationale then practical trade‑offs)
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.
Trade‑offs, incentives and implementation risks (concrete mechanisms):
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)).
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).
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)).
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.
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.
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).
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).
Who pays, who decides, and what behaviour changes
Who pays:
Insurers bear the direct compliance and legal‑risk costs of the genetic ban (process changes, training, possible penalties).
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.
FFSPs save on licensing costs if they meet exemption conditions; ASIC and Treasury bear administrative costs of oversight.
Who decides:
Insurers make underwriting decisions but subject to the statutory ban (s33H) and ASIC supervision.
ASIC decides on conditions, approved forms, cancellations and can require information or impose additional conditions (see 911J, 911R–911U).
The Minister determines "comparable regulators" by legislative instrument (section 911W) and may exclude particular obligations for MDB appropriations by instrument (Schedule 3).
Behaviour changes required:
Insurers must stop soliciting/using protected genetic information and update disclosure and underwriting practices.
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.
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).
Key implementation features to watch (concrete markers)
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).
Review and monitoring: the Minister must table five‑yearly reviews of the genetic provisions (section 33J).
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.
Selected section references:
Definition and ban: sections 33E–33H (Insurance Contracts Act amendments).
Disclosure and misrepresentation amendments: subsections 20B(5A), 21(3A), new section 25A, and subsection 47(4).
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).
MDB appropriations and securities: Schedule 3 (various sections such as new "relevant financial obligation" definitions and appropriation clauses).
Bottom 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).
Main concepts
Protected genetic information covers details about whether an individual or genetic relative has undergone, intends to undergo or has been recommended for genetic testing, plus the results of such testing, but excludes clinical diagnoses of disease and related treatment information unless generated in health or medical research. Life insurance contract decisions encompass offers to enter contracts, setting of terms, extensions, variations and reinstatements. Life insurance underwriting refers to risk assessments informing those decisions. Soliciting protected genetic information includes requesting, incentivising or inducing provision of such information or recommending genetic testing. The professional investor exemption applies to services provided from outside Australia to persons meeting the Corporations Act section 9 definition, subject to head office location, legal compliance belief and ASIC notification. The comparable regulator exemption requires the provider to hold authorisations from a Minister-determined regulator under section 911W that produces broadly comparable outcomes, consistent with IOSCO principles and subject to information-sharing consent. The market maker exemption covers making markets for derivatives traded on prescribed licensed markets. Relevant financial obligation captures contingent or non-contingent payment obligations arising under MDB agreements, arrangements or Board resolutions that support the institutions' purposes, with new obligations or increases requiring disallowable legislative instrument notification. The fit and proper person test exemption for fast-track licensing applies to foreign companies or partnerships already regulated by comparable regulators when seeking wholesale-client licences.
Who it affects
Life insurers operating in Australia face direct obligations under the new Division 5 of the Insurance Contracts Act 1984 and cannot solicit or use protected genetic information in underwriting except with unsolicited written consent that does not disadvantage the insured. Individuals applying for or varying life insurance policies gain protection from adverse use of predictive genetic test results while retaining the ability to volunteer favourable results. Genetic relatives of insured persons are covered by the definitions in sections 33E to 33G. Foreign financial services providers gain access to Australian professional and wholesale clients without holding an Australian financial services licence provided they meet the conditions in sections 911E to 911W, notify ASIC and submit to Australian court jurisdiction where required. Australian professional investors and wholesale clients, including superannuation funds and institutional investors, obtain expanded access to global investment opportunities through exempted foreign providers. ASIC receives new notification, direction and cancellation powers over exempted providers and must maintain a list of comparable regulators. Multilateral development banks and the International Monetary Fund benefit from streamlined Australian contribution processes, including special appropriations and securities issuance under delegated authority. Financial advisers avoid the administrative burden of individual annual registration with ASIC that would have commenced on 1 July 2026. Treasury officials gain delegated powers to issue securities for MDB obligations. The Senate Economics Legislation Committee and Senate Standing Committee for the Scrutiny of Bills examined the Bill prior to passage.
What people will want to know
Individuals considering genetic testing for medical or research purposes can proceed without fear that adverse results will be used against them in life insurance applications or variations after 8 October 2026. Consumers retain the right to disclose favourable genetic test results voluntarily. Life insurance policies entered before commencement remain subject to the ban only for subsequent agreed variations. Foreign financial services providers must notify ASIC of their intention to rely on exemptions within a 30-business-day window around first provision of services and must give written notice to each recipient explaining the exemption relied upon. Providers regulated by comparable overseas regulators must maintain a local agent in Australia except for short consecutive periods and consent to information sharing with ASIC. Market makers for prescribed derivatives receive an exemption only when services are provided from outside Australia and the provider reasonably believes local laws are not contravened. Australia’s contributions to multilateral development banks can now be met through standing appropriations without repeated specific parliamentary approval for each obligation, although new obligations or increases remain subject to disallowance. Financial advisers continue to be registered by their authorising Australian financial services licensees under the existing Stage 1 process. Regular five-yearly reviews of the genetic information provisions must consider effectiveness in providing certainty to individuals and any unintended consequences, with reports tabled in Parliament.
Status and what happens next
The Bill received royal assent on 8 April 2026 and became Act No. 35 of 2026. Schedule 3 commenced the following day, enabling immediate use of updated appropriation and securities provisions for multilateral development bank obligations. Schedule 4 commences on 30 June 2026, repealing the uncommenced Stage 2 adviser registration requirement. Schedule 1 commences on 8 October 2026, bringing the genetic testing ban and related disclosure protections into force. Schedule 2 commences on 8 April 2027, activating the foreign financial services provider licensing exemptions and fast-track licensing process. ASIC must prepare approved forms for notifications and consents and determine the initial list of comparable regulators, with the first determination able to draw on existing ASIC instruments. The Minister for Health and Aged Care or delegate will conduct the first five-year review of the genetic provisions after 8 October 2031. No schedules of amendments were agreed during parliamentary consideration. The Senate Economics Legislation Committee reported on 26 February 2026 following its inquiry. An electronic version of the Act is available on the Federal Register of Legislation.
Powers, duties and rights created
Section 33H creates a strict liability offence carrying 60 penalty units and a civil penalty of 5,000 penalty units for insurers that make life insurance contract decisions after taking account of underwriting that used solicited or used protected genetic information. Subsection 33H(3) provides a consent-based exception requiring written consent on an ASIC-approved form where information was not solicited and use does not disadvantage the insured. Section 33J imposes a duty on the Minister to cause five-yearly reviews and table reports in Parliament. Subsection 46(3) of the Disability Discrimination Act 1992 creates a statutory deeming that discrimination based on protected genetic information is not reasonable for life insurance. Sections 911G to 911Q impose conditions on exempted foreign providers including assistance to ASIC, submission to Australian jurisdiction, notification to recipients, compliance with ASIC directions, maintenance of local agents where required and notification of enforcement actions. Sections 911R to 911S empower ASIC to cancel exemptions partially or completely after a show-cause process where conditions are contravened or the provider fails the fit and proper person test. Section 911U allows ASIC to impose additional conditions as an alternative to cancellation. Section 911W empowers the Minister to determine comparable regulators by legislative instrument after considering IOSCO consistency and regulatory outcomes. Sections 4, 5 and 6 of the amended Asian Development Bank Act 1966 and equivalent provisions in other MDB Acts create special appropriations and empower the Treasurer or Minister to issue non-negotiable, non-interest-bearing securities and delegate those powers to senior Treasury officials.
Money, penalties and enforcement
The Act establishes a strict liability offence of 60 penalty units (currently $19,800) and a civil penalty of 5,000 penalty units (currently $1,650,000) for insurers, with higher penalties available for bodies corporate under section 75D of the Insurance Contracts Act 1984. Penalty units are indexed from 1 July 2026. Contravention of conditions attached to foreign provider exemptions constitutes a civil penalty provision under subsection 911G(4). Special appropriations are created for all payments necessary to meet relevant financial obligations to multilateral development banks and the International Monetary Fund, plus redemption of issued securities, without dollar caps but limited to obligations arising under specified agreements or resolutions. New obligations or increases require prior notification by disallowable legislative instrument. ASIC may cancel exemptions and impose additional conditions, with procedural safeguards including show-cause notices and rights to make submissions. The Consolidated Revenue Fund is appropriated for MDB-related payments and securities. No new criminal offences are created beyond the strict liability provision in section 33H(1). Enforcement of the genetic ban applies to decisions made on or after 8 October 2026, including variations of earlier policies where the variation is expressly agreed.
Pressure points and controversies
The genetic testing ban creates an information asymmetry between consumers and insurers that the explanatory memorandum acknowledges may lead to adverse selection, where individuals aware of high-risk results purchase higher cover than they otherwise would, potentially affecting premiums or product availability across the pool. Regular five-year reviews are required to identify and address any such effects. Schedule 2 provisions allowing regulations to carve out particular services or investors from the professional investor exemption were scrutinised as Henry VIII-style clauses that permit modification of primary legislation by delegated instrument. The Senate Standing Committee for the Scrutiny of Bills drew the appropriateness of proposed section 911F to the attention of senators. Incorporation by reference of MDB agreements as in force from time to time in the definitions of relevant financial obligation raises the prospect of future changes to Australian law without fresh parliamentary enactment, although treaty processes and disallowance of new obligation notifications provide oversight. The repeal of Stage 2 adviser registration removes a Hayne Royal Commission-derived individual accountability measure before it commenced, relying instead on licensee-level registration. Trade-offs exist between facilitating foreign provider access to improve investment diversification for superannuation funds and maintaining ASIC’s ability to take direct enforcement action against misconduct by exempted entities.
What changes if it passes
From 8 October 2026 life insurers must cease using protected genetic information in any underwriting for new policies or agreed variations, subject only to the narrow unsolicited consent exception. Individuals gain statutory certainty that predictive genetic test results cannot be used to deny cover or load premiums. From 8 April 2027 foreign financial services providers meeting the specified criteria can provide services to professional and wholesale clients without an Australian financial services licence, subject to ongoing conditions and ASIC oversight, while comparable-regulator firms can obtain licences through a fast-track process that bypasses the fit and proper person assessment. Australia’s participation in multilateral development banks operates under modernised appropriation and securities frameworks that reduce the need for repeated specific legislation for capital increases or new instruments. Financial advisers continue operating under the existing licensee registration system without the additional annual self-registration obligation that would have applied from 1 July 2026. Nine historical Acts authorising specific share subscriptions or capital increases are repealed, with their operative provisions consolidated into the principal Acts. The overall regulatory framework for life insurance underwriting, foreign financial services and international financial institution contributions is updated to reflect contemporary practice while preserving parliamentary oversight through disallowance and review mechanisms.
Social post angles
Genetic test results now protected in life insurance: Australians can pursue medical genetic testing without worrying that results will affect future cover after October 2026. Foreign investment access widens for super funds: New licensing exemptions let Australian wholesale investors tap global opportunities through overseas providers under ASIC oversight from 2027. Red tape cut for financial advisers: The planned annual individual registration requirement is scrapped before it starts, keeping the system at licensee level. Standing appropriations streamline MDB funding: Australia can meet multilateral bank obligations without fresh legislation for each new commitment, subject to disallowance. Five-year reviews built into genetic ban: Parliament will examine whether the life insurance protections deliver certainty and avoid unintended market effects. Comparable regulator list gives certainty to offshore firms: The Minister will publish which overseas regulators qualify for fast-track licensing and exemptions. Consent exception allows voluntary disclosure: Consumers can still share favourable genetic results with insurers if they choose, provided the information is unsolicited. Repeal of old capital Acts modernises Treasury law: Nine historical statutes are removed as their provisions are consolidated into principal legislation for development banks.
Year: 2026
08 Apr 2026
Notes
Documents and transcripts
Text of bill
First reading
As passed by both Houses
Explanatory memoranda
Explanatory memorandum
Transcript of speeches
All second reading speeches
Minister's second reading speech
Proposed amendments
House of representatives
2nd reading amendment
RYAN, Monique, MP
Detail - Crossbench
SCAMPS, Sophie, MP
Detail - Crossbench
RYAN, Monique, MP
Schedules of amendments
No documents at present
Bills digest
Bills Digest
Notes
Referred to Committee (27/11/2025): Senate Economics Legislation Committee; Committee report (26/02/2026)
Considered by scrutiny committee (04/02/2026): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 2 of 2026
An electronic version of this Act is available on the Federal Register of Legislation (www.legislation.gov.au)
The Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (the Bill) contains amendments in 4 separate areas.
Schedule 1 will amend the Insurance Contracts Act 1984 to create a strict liability offence and civil penalty to prohibit insurers from using protected genetic information in making life insurance contract decisions (as well as making a related amendment to the Disability Discrimination Act 1992).
Schedule 2 will amend the Corporations Act 2001 to provide certain foreign financial services providers exemptions in relation to the requirement to hold an Australian financial services licence and an exemption from the ‘fit and proper person’ test in an application for a Australian financial services licence.
Schedule 3 standardises legislative provisions, particularly appropriation provisions, in relation to Australia’s contributions to a range of multilateral development banks and the International Monetary Fund.
Schedule 4 will repeal a legislated requirement that financial advisers annually register with the Australian Securities and Investment Commission, which is scheduled to commence on 1 July 2026. This requirement was originally legislated in 2021 in response to a recommendation of the Hayne Royal Commission that financial advisers should be required to register.
On 27 November 2025, the Bill was referred to the Senate Economics Legislation Committee for inquiry and report by 26 February 2026. Submissions closed on 21 January 2026.
Introductory Info
Date of introduction: 26 November 2025
House introduced in: House of Representatives
Portfolio: Treasury
Commencement: The amendments in Schedule 1 commence 6 months after Royal Assent. The commencement of the amendments in the other schedules is outlined below.
Purpose of the Bill
The purpose of the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (the Bill) is to amend the Insurance Contracts Act 1984 (IC Act) to prohibit insurers from using certain genetic testing information in life insurance contract decisions as well as making a related amendment to the Disability Discrimination Act 1992 (DD Act).
The Bill will also:
amend the Corporations Act 2001 to establish exemptions to the requirements to hold an Australian financial services licence (AFS licence) for certain foreign financial service providers and an exemption from the ‘fit and proper person’ test in applications for AFS licences (Schedule 2)
make amendments to a range of legislation relating to Australia’s contributions to multilateral development banks (MDBs) and the International Monetary Fund (Schedule 3)
repeal a requirement (derived from a Hayne Royal Commission recommendation) that financial advisers should register annually with the Australian Securities and Investment Commission (ASIC) before it comes into effect on 1 July 2026 (Schedule 4).
On 27 November 2025, the Bill was referred to the Senate Economics Legislation Committee for inquiry and report by 26 February 2026. Submissions closed on 21 January 2026.
Key provisions and issues
Schedule 1,Limiting the use of genetic information by life insurers
Background
The use of genetic information by the insurance industry has been a longstanding area of policy concern. In 2003, the Australian Law Reform Commission (ALRC) inquiry report Essentially Yours into the protection of genetic information included recommendations that a ‘range of safeguards and improved policies and practices should be applied to the insurance industry’s use of genetic information (including family history) for underwriting purposes’ (p. 36). While there was some support for a ban on the use of genetic information, the ALRC’s view was that ‘a departure from the fundamental principle underlying the market in voluntary, mutually rated personal insurance in Australia, namely, equality of information between the applicant and the insurer, cannot be justified at this time.’ (p. 691)
In 2018, a Parliamentary Joint Committee on Corporations and Financial Services (PJCCFS) inquiry report into the Life Insurance Industry recommended that the Financial Services Council (FSC), in consultation with the Australian Genetic Non-Discrimination Working Group, assess the consumer impact of imposing a moratorium on life insurers using predictive genetic information (Recommendation 9.1).
In 2019, the FSC introduced an industry-based Moratorium on Genetic Testing which limited the use of genetic test results when assessing applications for life insurance up to prescribed policy limits. For example, life insurers would not be able to use genetic test result information for policies up to thresholds of $500,000 for death or total permanent disability. However, above the specific thresholds, genetic testing results could be requested or used by an insurer. In July 2023, the Moratorium was included as Appendix A of the Life Insurance Code of Practice (currently under review).
In June 2023, Monash University published the Final Stakeholder Report from a study titled ‘(A‑GLIMMER) Australian Genetics & Life Insurance Moratorium: Monitoring the Effectiveness and Response’. The report found that the Moratorium was ‘inadequate to address and prevent genetic discrimination in life insurance’ and recommended that it should be ‘replaced with a legislative model of prohibition.’ (p. 5)
Between November 2023 and January 2024, the Treasury consulted on use of genetic testing results in life insurance underwriting. The consultation paper (Use of Genetic Testing Results in Life Insurance Underwriting) noted that the Monash University study had found that the ‘existing moratorium continues to discourage consumers from participating in both established clinical genetic testing, which may identify a need for potentially life-saving treatment, and medical research involving genetic testing.’ (p. 4)
In September 2024, the Albanese Government announced it would ‘end the ability to discriminate based on adverse predictive genetic test results by banning their use in life insurance underwriting’:
This decision places Australia as a world leader in removing barriers to genetic testing by stopping the use of adverse predictive test results in life insurance.
Advocates have campaigned for this change over the last decade. The Government has taken this step in partnership with the community to support Australians.
This ban is underpinned by extensive stakeholder engagement and consultation, and will ensure that all Australians can reap the benefits offered by this technology. Consumers will still be able to choose to disclose a favorable genetic test result.
Further consultation on the proposed ban was undertaken by Treasury in February 2025 and draft legislation was released for consultation in September 2025.
Key issues and provisions
Part 1,Main amendments
Key definitions
The main amendment in Part 1 will be inserting a new Division 5 regulating the use of protected genetic information in relation to contracts for life insurance in Part IV of the IC Act which currently addresses disclosures and misrepresentations.
In particular, proposed section 33F will define protected genetic information about an individual as information about:
whether an individual (or a genetic relative) has undergone, intends to undergo, or has been recommended to undergo, genetic testing
any genetic testing undergone by the individual (or genetic relative), including the results of such testing.
However, the scope of this term will usually not extend to where there has been a clinical diagnosis of a disease based on or informed by genetic testing (definitions of these terms will be inserted into section 11 and proposed section 33E).
Other key definitions are also inserted into section 11 of the IC Act. The term life insurance contract decision means where an insurer decides:
whether or not to enter, or offer to enter into, a proposed contract of life insurance
the terms and conditions on which the insurer enters, or offers to enter into, a proposed contract of life insurance
whether or not to propose or accept an extension, variation or reinstatement of a contract of life insurance
the terms or conditions on which the insurer proposes or accepts an extension, variation or reinstatement of a contract of life insurance.
The Explanatory Memorandum (EM) states this broad definition is ‘intended to capture the full range of decisions an insurer may make in relation to an insured’s application for a contract of life insurance …’ (p. 13)
The term life insurance underwriting is also inserted in section 11 meaning ‘any assessment of risk associated with an individual that is intended to inform a life insurance contract decision’.
Strict liability offence and civil penalty
Proposed section 33H will create both a strict liability offence and civil penalty for insurers who use protected genetic information in life insurance underwriting.
The strict liability offence (proposed subsection 33H(1)) would be committed where:
an insurer makes a life insurance contract decision in relation to a contract of life insurance or proposed contract of life insurance
in making that decision, the insurer takes into account the results of underwriting conducted in relation to a life insured and
protected genetic information about the life insured was solicited or used for the purpose of the underwriting by the insurer or any other person who conducted or assisted with the underwriting.
The term solicit is broadly defined in proposed section 33G to mean where a person:
requests, incentivises or otherwise induces or encourages another person to provide protected genetic information or to provide a kind of information that includes protected genetic information
requests or recommends that an individual undergo genetic testing whether or not the individual undergoes the genetic testing.
The maximum penalty for the strict liability offence would be 60 penalty units ($19,800).
Contravention of the civil penalty (proposed subsection 33H(2)) incorporates the same elements as the strict liability offence. The maximum civil penalty provided in the proposed provision is 5,000 penalty units ($1,650,000). However, section 75D, which provides for higher pecuniary penalties in some circumstances, particularly for body corporates, will apply. The amount of a penalty unit (currently $330) will be indexed on 1 July 2026 (section 4AA, Crimes Act 1914).
There will be an exception to both the strict liability offence and the civil penalty where a person being life insured, their treating medical practitioner or their agent consents to providing the protected genetic information (proposed subsection 33H(3)). This requires that the protected genetic information was not solicited by the insurer (or underwriter), that appropriate written consent was obtained, and that the use of the information does not ‘disadvantage the insured, any life insured or any third party beneficiary under the contract’ in relation to the life insurance contract decision.
Review of the operation of the provisions
Proposed section 33J provides for regular reviews of the operation of the provisions to be inserted by the Bill. The reviews must consider whether the provisions are ‘effective in providing reasonable certainty to individuals about the use of protected genetic information in relation to contracts of life insurance’ and have ‘any unintended consequences’. The reviews must be conducted ‘after each fifth anniversary of the commencement’ and tabled by the Minister in each House of the Parliament within 15 sitting days.
Part 2,Other amendments
Part 2 contains other related amendments to the IC Act and the DD Act. In particular, section 46 of the DD Act provides certain exemptions for discrimination on the basis of disability in refusing to offer, or the terms and conditions of, superannuation and insurance where this is based upon actuarial or statistical data and is ‘reasonable’. Item 5 would insert proposed subsection 46(3) which would limit these exemptions in relation to life insurance policies by providing that ‘… discrimination based on protected genetic information… about a person is taken not to be reasonable…’
The Bill will amend the duties concerning disclosure and misrepresentation in the IC Act to reflect the restriction on the use of protected genetic information in life insurance contract decisions. Section 20B imposes a duty on the insured to take reasonable care not to make a misrepresentation to an insurer before a contract of insurance is entered into. Item 7 inserts proposed subsection 20B(5A) to clarify it is not a misrepresentation to not disclose protected genetic information for contracts of life insurance. Similarly, proposed subsection 21(3A) will provide the insured’s duty of disclosure in section 21 ‘… does not require the disclosure of protected genetic information about a life insured’.
Proposed section 25A also provides that an insured is not taken to have made a misrepresentation before a contract of life insurance was entered into merely because the insured did not disclose protected genetic information about a life insured.
Currently section 47 limits where an insurer can exclude liability where the insured was not aware (or a reasonable person could not be expected to have been aware) of a pre-existing sickness or condition. Item 10 remakes this provision by distinguishing between a contract of life insurance and other contracts. In relation to contracts of life insurance, proposed subsection 47(4) provides that in determining the insured’s awareness (or reasonable awareness) of pre-existing sickness or disability, certain circumstances must be disregarded:
whether the insured (or their genetic relative) had a disease that is of a genetic nature and is a thing prescribed by the regulations or
whether the insured (or their genetic relative) has a genetic predisposition to a disease where they had not received a clinical diagnosis for that disease at the time that the contract of life insurance was entered into, and the genetic predisposition is not a thing prescribed by the regulations.
The EM notes that capacity to make regulations will ‘allow the Government to provide certainty and clarity to individuals and insurers in a timely manner, particularly in response to medical advancements that may necessitate changes to the scope of what section 47 applies to’ (p. 29).
Issues
The proposed ban has received support including from the Council of Australian Life Insurers (CALI) whose members will be primarily regulated by the amendments. CALI stated in 2024 that it supported ‘a ban on the use of genetic test results in insurance underwriting to help empower Australians to better manage their health’.
However, the EM’s impact analysis acknowledges that the information asymmetry created by the ban between consumers and insurers may cause ‘adverse selection’ (p. 130):
Adverse selection occurs when a consumer, who is aware of a genetic test result indicating that they are at high risk of an early death or disablement, seeks a life insurance policy or level of cover that they otherwise would not have sought … At its most extreme, adverse selection has the potential to threaten the viability of a market or lead to insurers amending product offerings to moderate any impacts (including through increasing premiums across the pool). While significant impacts are not anticipated in this instance (due to disclosure requirements surrounding diagnosed conditions and an applicant's relevant personal and family medical history), scheduling regular reviews of the impact of any restrictions will enable Government to promptly identify and address any such concerns.
Schedule 2,Licensing exemptions for foreign financial institutions
Background
The term foreign financial services provider (FFSP) covers a range of financial services which may be provided within Australia by entities based overseas including banking, investment funding, wealth management, market making, and financial advisory services. Under the Corporations Act, a person who carries on a financial services business in Australia must hold an AFS licence covering the provision of the financial services unless an exemption applies (section 911A). There are a number of requirements an applicant must pass to be granted an AFS licence including a ‘fit and proper person’ test (section 913BA). Once granted licenses, AFS licensees are subject to range of obligations in providing financial services (section 912A).
There are range of exemptions from this requirement and since 2003 ASIC has provided licensing relief for certain FFSPs. In particular, some licensing relief has been provided for FFSPs providing services to ‘wholesale clients’ (defined in section 761G). ASIC outlines (pp. 8-9) these are clients who pass either:
a product value test ($500,000 or more)
an individual wealth test (net assets of $2.5 million or gross income of $250,000 for the last two financial years) or
a sophisticated investor test (where the AFS licensee provides a statement they have reasonable grounds to believe that the investor has the experience to assess and understand the merit, value and risks of the financial product).
In February 2025, a PJCCFS inquiry recommended amendments to the Corporations Act to remove ‘the subjective elements of the sophisticated investor test and introduce objective criteria…’ (Recommendation 2).
In the 2021-22 Budget, the Morrison Government announced it would consult on options for regulatory relief for FFSPs from requirements to hold AFS licences ‘in order to reduce duplicate regulatory requirements’ (p. 190). This relief was to be limited to ‘FFSPs that deal with wholesale clients and professional investors’ and the consultation would also examine options ‘to create a fast-track licensing process for FFSPs who wish to establish more permanent operations in Australia’ (p. 190). This Treasury consultation was undertaken in July 2021.
In February 2022, the Treasury Laws Amendment (Streamlining and Improving Economic Outcomes for Australians) Bill 2022 was introduced which included the legislative amendments in Schedule 2 (with some minor changes outlined in the EM, p. 3). However, the Bill lapsed at dissolution of the 46th Parliament.
The Schedule 2 provisions were also part of the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 (Better Targeted Bill) as Schedule 7. The Better Targeted Bill was considered by the Senate Economics Legislation Committee and the majority report welcomed the proposed amendments and acknowledged ‘the widespread support for these measures among submitters and other stakeholders’ (p. 50). The Better Targeted Bill was also considered by the Senate Standing Committee for the Scrutiny of Bills which highlighted the operation of proposed section 911F (discussed below).
In December 2025, ASIC extended transitional exemptions for certain FFSPs from the requirement to hold an AFS licence in specified circumstances for an additional 12 months to 31 March 2027.
Key provisions and issues
Schedule 2 amends the Corporations Act to provide licensing exemptions for FFSPs dealing with certain Australian clients. These exemptions will apply to entities that:
provide financial services from outside Australia to professional investors (the professional investor exemption)
are regulated by comparable regulators and provide financial services to wholesale clients (the comparable regulator exemption) or
provide financial services that involve making a market for derivatives that are able to be traded on a specified licensed market (the market maker exemption).
Schedule 2 also establishes a fast-track licensing process for persons seeking to establish more permanent operations in Australia by providing an exemption for persons regulated by comparable regulators from the ‘fit and proper person test’ when applying for an AFS licence to provide financial services to wholesale clients.
In his second reading speech, the Minister stated that this licensing relief would ‘facilitate access by Australian professional and wholesale investors to global investment opportunities so that they can diversify their financial holdings’ (p. 19):
This improves outcomes for millions of Australians as these services are commonly used by superannuation funds and institutional investors, among other financial firms.
This relief has generally been provided by way of an ASIC instrument. The legislation and this schedule in the bill will elevate the relief to primary law and improve oversight for the regulator.
This gives certainty to the industry that financial institutions and eligible investors can access the financial products and services offered by foreign financial service providers.
Professional investor exemption
Currently section 911A contains a number of exemptions to the requirement to hold an AFS licence. Item 3 will insert proposed paragraph 911A(2)(eo) which will outline a new professional investor exemption. The term professional investor is defined in section 9 of the Corporations Act and applies to a number of categories such as AFS licensees, trustees of large superannuation funds, bodies regulated by the Australian Prudential Regulation Authority, listed entities, persons controlling at least $10 million in assets and certain public authorities.
The professional investor exemption will apply where:
the financial service is provided only to professional investors
the person provides the financial service from a place outside of Australia (except during limited marketing visits)
the person’s head office and principal place of business are located at one or more places outside of Australia
the person reasonably believes that providing the same or substantially the same financial service would not contravene any law applying in the person’s principal place of business, head office, or the place from where the financial services are provided
the person notifies ASIC they intend to rely on this exemption.
However, proposed section 911F provides that the regulations may provide that the exemption does not apply to particular kinds of financial services, products or professional investors. When the Senate Scrutiny of Bill Committee previously considered this proposed provision as part of another Bill, it raised concerns and sought clarification from the Treasurer regarding how it would operate. It noted (pp. 24-25):
Provisions enabling delegated legislation to modify the operation of primary legislation are akin to Henry VIII clauses, which authorise delegated legislation to make substantive amendments to primary legislation (generally the relevant parent statute) …
The committee is also concerned when provisions enable delegated legislation to exempt persons or entities from the operation of primary legislation. These provisions have the effect of limiting, or in some cases removing, parliamentary scrutiny.
Following a ministerial response, the Committee drew its scrutiny concerns ‘to the attention of senators and leaves to the Senate as a whole the appropriateness of proposed section 911F providing that regulations can provide for exemptions to the professional investor exemption as set out in primary legislation’. (pp. 55-56)
Comparable regulator exemption
ASIC has provided transitional ‘sufficient equivalence’ regulatory relief to certain FFSPs where they are regulated by certain overseas regulators (such as the Financial Conduct Authority in the United Kingdom). Proposed paragraph 911A(2)(ep) will create a similar exemption where:
the financial service is provided only to wholesale clients
the person is a foreign company or is a partnership formed outside of Australia
the person has and maintains authorisations, registrations or licences (however described) necessary to legally provide the same or substantially the same financial service in a place outside of Australia
the regulator administering those authorisations, registrations or licences for the comparable jurisdiction is a regulator determined by the Minister under proposed section 911W
the person notifies ASIC they intend to rely on this exemption.
Proposed section 911W will allow the Minister to determine, by legislative instrument, overseas regulators that administer broadly comparable regulatory regimes of authorisations, registrations or licences. The Minister must have regard to a range of matters in making these determinations including whether the overseas regulatory regime ‘produces broadly comparable outcomes’, any relevant advice from ASIC and whether the relevant ‘regulatory regime is broadly consistent with the Objectives and Principles of Securities Regulation, developed by the International Organization of Securities Commissions (IOSCO)’.
Market maker exemption
Proposed paragraph 911A(2)(eq) will also create an exemption for persons providing a financial service ‘making a market’ for derivatives that are able to be traded on a specified licensed market prescribed in regulations. The meaning of ‘makes a market’ draws from section 766D where a person ‘makes a market’ for a financial product if they regularly state ‘the prices at which they propose to acquire or dispose of financial products on their own behalf’ and ‘other persons have a reasonable expectation that they will be able to regularly effect transactions at the stated prices’ (with some specified exceptions).
The market maker exemption will have similar requirements to the professional investor exemption (discussed above). This includes that it will only apply where the person reasonably believes that providing the same or substantially the same financial service would not contravene any law applying in the person’s principal place of business, head office, or the place from where the financial services are provided.
Conditions and notification requirements
The proposed exemptions will be subject to a range of conditions and contravention of a condition may result in a civil penalty (proposed subsection 911G(4)). For the professional investor exemption these conditions include:
complying with ASIC’s reasonable requests for assistance in relation to its functions and powers (proposed subsection 911H(2)) and ASIC directions for specified information relating to the person’s financial services or business (proposed section 911J)
giving notice of the exemption to each recipient of financial service (proposed section 911K)
notifying ASIC of any changes to contact details (proposed section 911L)
if the financial service business is carried on predominantly within Australia, the person must do all things necessary to ensure that the financial services are provided efficiently, honestly and fairly (proposed section 911M)
notifying ASIC of any contravention of a condition for an exemption (proposed section 911Q)
As well as the above conditions, persons relying on the comparable regulator and market maker exemptions must also notify ASIC they agree to submit to the non-exclusive jurisdiction of Australian courts for proceedings relating to the relevant financial services brought by ASIC (or another Commonwealth authority) and to comply with any resulting court orders (proposed subsection 911H(3)).
Additionally, the conditions for the comparable regulator exemption include:
having a local agent in Australia (proposed subsection 911P(2))
notifying ASIC that the person consents to ASIC and the comparable regulator sharing information about the person (proposed subsection 911N(2))
notifying ASIC of any significant enforcement action, disciplinary action or investigation undertaken against the person (proposed subsection 911N(4)).
ASIC will have powers to cancel the use of the exemptions by FFSPs as well as to vary or impose additional conditions. For example, ASIC may, in writing, cancel an exemption from applying if it reasonably believes a person is not a ‘fit and proper’ person (proposed section 911S). ASIC’s powers in relation to the exemptions will be subject to procedural safeguards such as requirements to first give a ‘show cause notice’ to persons (for example, proposed section 911T).
Proposed subsections 911A(5AA)-(5AD) set out the requirements for persons who intend to rely on the exemptions to notify ASIC including the form of notification and timing rules.
Fast track licensing - exemption from ‘fit and proper person’ test
Currently, section 913B outlines the preconditions for ASIC to grant an AFS licence including that the applicant satisfies the ‘fit and proper person’ test.
The Bill’s amendments will insert proposed subsection 913B(2A) which will exempt certain foreign companies and partnerships from this requirement. This can occur where:
the applicant is a foreign company or is a partnership formed outside of Australia
the licence would be restricted to the provision of financial services to wholesale clients
the applicant already holds ‘authorisations, registrations or licences’ to legally provide ‘the same or substantially the same financial services’ overseas issued by a comparable regulator.
The exemption would draw on the ‘comparable regulator’ provision discussed above (proposed section 911W) which would be determined by the Minister.
Section 914B relates to applications for the conditions on an AFS licence to be varied. Subsection 914B(2) provides that ASIC may refuse to vary a condition if the ‘fit and proper person’ test is not satisfied. Proposed subsection 914B(2A) would apply the same exemption outlined above for foreign companies or partnerships with comparable regulators.
The EM notes that the purpose of the exemptions from the ‘fit and proper’ person test is to ‘fast-track the licensing process and reduce the administrative burden’ for foreign companies or partnership formed overseas which are regulated by a comparable regulator (p. 79).
Commencement
The amendments in Schedule 2 will commence 12 months after Royal Assent.
Issues
The proposed AFS licence exemptions in Schedule 2 attempt to resolve a complex issue,the optimal framework to allow Australians to benefit from accessing FFSPs while maintaining the regulatory safeguards delivered by requiring persons providing financial services to obtain AFS licences from ASIC. In discussing its concerns regarding earlier proposed reforms for FFSPs, ASIC noted (p. 27):
ASIC is in the invidious position that if two entities engaged in the same misconduct such as not acting efficiently, honestly or fairly involving Australian clients and the activity occurred in Australia and one held an AFS licence and the other did not, there would be two different regulatory responses to the misconduct.
For example, ASIC does not have the ability to apply the same regulatory response such a [sic] seeking a civil penalty for the misconduct by an FFSP. We would generally be reliant on the overseas regulator to take the relevant regulatory action for such misconduct by the FFSP under its regime. This may mean we may not achieve the intended deterrent effect when addressing misconduct by an FFSP as we would when addressing misconduct by an AFS licensee.
Similarly, the proposed exemptions from the ‘fit and proper person’ test are likely to encourage applications for AFS licenses by foreign companies and partnerships who may provide financial services to Australian wholesale clients. However, this exemption will also limit the capacity of ASIC to reject applications and increase its reliance on overseas ‘comparable regulators’ to appropriately assess and regulate applicants for AFS licences.
Schedule 3,Multilateral development banks
Background
Multilateral development banks (MDBs) are generally international financial institutions established by two or more nation states to support economic growth and other outcomes in developing countries. Australia is a member and contributor to a number of MDBs including the World Bank Group, the Asian Infrastructure Investment Bank and the Asian Development Bank. Australia is also a member of the International Monetary Fund (IMF), an international financial institution which facilitates financial stability, monetary cooperation and economic growth including by providing assistance to countries in crisis.
The amendments in Schedule 3 will standardise some features of the legislative frameworks which facilitate Australia’s involvement with several MDBs and the IMF. These include amendments to:
Asian Development Bank Act 1966
Asian Infrastructure Investment Bank Act 2015
European Bank for Reconstruction and Development Act 1990
International Finance Corporation Act 1955 (IFC Act)
International Monetary Agreements Act 1947and International Monetary Agreements Act 1960
Multilateral Investment Guarantee Agency Act 1997 (MIGA Act).
New appropriation provisions
A special (or standing) appropriation is a legislative provision which authorises a payment to be made by the Commonwealth from the Consolidated Revenue Fund. The amendments will introduce standardised special appropriations into the legislative framework for MDBs. The EM highlights the key features of the proposed provisions (pp. 88-89):
The new appropriations support any payments necessary to meet relevant financial obligations to MDBs.
The amendments define ‘relevant financial obligation’ in each Act. A relevant financial obligation is any obligation (contingent or otherwise) that satisfies the following requirements:
the obligation must require (or could require) Australia to make one or more payments;
the obligation must have been undertaken or imposed under an agreement, arrangement or resolution of a specific kind;
the obligation must relate to providing financial accommodation in support of the purpose of the MDB;
if the obligation is undertaken or imposed after commencement of the amendments, the notification requirements must be met; and
the obligation must not be an obligation that is excluded by the Minister.
The EM acknowledges that the proposed appropriations provisions ‘do not have a direct dollar-figure limit’ (p. 88):
This is appropriate as it allows the Commonwealth flexibility to enter into new arrangements or agreements with MDBs. However, the amounts of money that could be appropriated is indirectly limited … [T]he appropriations only allow money to be appropriated for Australia meeting financial obligations under an agreement, arrangement or resolution of a specific kind with an MDB. The appropriations are therefore strictly limited to the policy objective of supporting Australia’s participation with MDBs. Further, new financial obligations, or increases in amounts of existing financial obligations, are subject to Parliamentary scrutiny through the disallowance process. These oversight mechanisms ensure the Commonwealth is limited in its use of the standing appropriations.
In particular, after commencement, new obligations, or increases in amounts of existing relevant financial obligations, will require notice to be given by the Minister by legislative instrument. These notices would be subject to disallowance and may only commence after the disallowance period outlined in subsection 42(1) of the Legislation Act 2003.
Issue of securities and delegation
The amendments will also standardise provisions to allow the Treasurer to make and issue securities in place of payments to ‘ensure Australia can issue promissory notes or similar securities to satisfy its relevant financial obligations to the MDBs’ (EM, p. 93). These securities must be non-negotiable, non-interesting bearing and payable to the MDB on its par value on demand.
The amendments will also allow the Treasurer to delegate, in writing, the power to make and issue securities for this purpose to senior Treasury officials. Persons exercising these delegated powers must comply with the Minister’s written directions.
Incorporation of certain MDB agreements by reference
Currently, the MIGA Act includes the text of the MIGA Convention in Schedule 1 of the legislation. In the IFC Act, the definition of the IFC Agreement (section 3) contains references to previous amendments and the Treasurer may also give notice of amendments to the IFC Agreement by legislative instrument (section 5A). The Bill will simplify the references to these agreements in these pieces of legislation.
In the definitions of a ‘relevant financial obligation’, ‘the Agreement’ and ‘Convention’ for the MIGA Act and the IFC Act, the Bill’s amendments would incorporate the IFC Agreement and the MIGA Convention by reference to each respective agreement, as in force for Australia from time to time. The EM states this would mean that ‘future amendments made to the respective agreements will be automatically incorporated into domestic legislation on coming into effect at international law.’ (p. 95)
While the EM characterises this approach as ‘consistent with modern drafting practice’ (p. 94), the Senate Standing Committee for the Scrutiny of Bills has previously provided guidance that the incorporation of legislative provisions by reference to other documents ‘… raises the prospect of changes being made to the law in the absence of parliamentary scrutiny’ (p. 22). Relevant to this issue, the EM states (p. 95):
The amendments do not alter the entry into force or application of the IFC Agreement or MIGA Convention for Australia.
As any future amendments to the IFC Agreement or MIGA Convention will constitute a treaty action, the decision to accept those amendments will be subject to Australia’s treaty making procedures, such as consideration by the Joint Standing Committee on Treaties and approval by relevant Ministers. This will provide appropriate parliamentary oversight of any proposed amendments.
The amendments in Schedule 3 will commence the day after Royal Assent.
The final report of the Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry included a recommendation that the law should be amended to establish a new disciplinary system for financial advisers which ‘requires all financial advisers who provide personal financial advice to retail clients to be registered’ (Recommendation 2.10). The report argued that mandatory individual registration would have a number of benefits. These included:
formalising the existing Financial Advisers Register ensuring valuable information is available to the public
facilitating the operation of a central disciplinary body
ensuring the central disciplinary body can impose sanctions that have effect even if an adviser leaves a particular AFS licence holder or professional association
facilitating the introduction of additional requirements for advisers directed at raising standards in the industry (p. 213).
Further, the report considered that a system of mandatory individual registration could impress upon ‘financial advisors that they occupy a position of trust, and that their entitlement to continue to occupy that position of trust depends on their obeying the law and other standards …’ (p. 214)
The Morrison Government introduced the Financial Sector Reform (Hayne Royal Commission Response,Better Advice) Act 2021 (Better Advice Act) to respond to this recommendation by amending the Corporations Act to allow for a two-stage registration process for financial advisers. Stage 1 involved a one-off registration process obliging AFS licensees to apply to ASIC to register their financial advisers by providing additional information on their authorised advisers. ASIC was to use this information to update the Register of Relevant Providers also (also known as the Financial Advisers Register). In relation to the Stage 1 process, ASIC’s guidance noted:
The registration requirement is an ongoing obligation and is separate to the requirement for AFS licensees to authorise and appoint a relevant provider to the Financial Advisers Register. From 16 February 2024, AFS licensees must authorise, appoint and register a relevant provider before the relevant provider can lawfully provide personal advice to retail clients on relevant financial products.
Under the proposed Stage 2 registration process, individual financial advisers would be obliged to apply to register themselves and this registration would remain in force until the end of the next financial year. This was intended to coincide with the roll out of a new Australian Business Registry System administered by the Australian Taxation Office replacing the Financial Advisers Register administered by ASIC (EM, Better Advice Act, p. 53).
The amendments requiring financial advisers to register as part of the Stage 2 registration process were to commence on a date fixed by proclamation, but no later 1 July 2026 (contained in Schedule 2 of the Better Advice Act). However, on 10 February 2025, the Albanese Government announced:
… the Government will no longer proceed with Stage 2 of the registration process for financial advisers established by the Better Advice Act. This stage would have required individual advisers to register annually with [ASIC] from 1 July 2026.
Financial advisers are already registered by their authorising Australian Financial Services licensees under Stage 1. Not proceeding with Stage 2 removes unnecessary red tape on individual advisers.
Schedule 4 of the Bill will repeal Schedule 2 of the Better Advice Act and its commencement provision so that the obligations on unregistered ‘relevant providers’ not to provide ‘personal advice to retail clients in relation to relevant financial products’ do not commence. The EM clarifies (p. 5):
This maintains the current system which requires AFS licensees to apply to ASIC to register their authorised financial advisers. This is consistent with the objective of reducing regulatory burden for individual advisers and maintaining a functioning and effective disciplinary system.
The Schedule 4 amendments will commence on 30 June 2026 (the day before the scheduled commencement of Schedule 2 of the Better Advice Act).
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Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026
No. 35, 2026
An Act to amend the law relating to life insurance, financial services and certain international financial institutions, and for related purposes
[Assented to 8 April 2026]
The Parliament of Australia enacts:
1 Short title
This Act is the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
Sections 1 to 3 and anything in this Act not elsewhere covered by this table
The day this Act receives the Royal Assent.
8 April 2026
Schedule 1
The day after the end of the period of 6 months beginning on the day this Act receives the Royal Assent.
8 October 2026
Schedule 2
The day after the end of the period of 12 months beginning on the day this Act receives the Royal Assent.
8 April 2027
Schedule 3
The day after this Act receives the Royal Assent.
9 April 2026
Schedule 4
30 June 2026.
30 June 2026
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1,Limiting the use of genetic information by life insurers
Part 1,Main amendments
Insurance Contracts Act 1984
1 Section 11
Insert:
clinical diagnosis, in relation to an individual, means a clinical diagnosis made by any treating medical practitioner of the individual based on:
(a) the individual’s history; and
(b) medical examination of the individual; and
(c) results of relevant medical investigations conducted in relation to the individual.
disease:
(a) subject to paragraph (b), includes an illness, syndrome and disorder; and
(b) does not include an individual’s genetic predisposition to a disease (within the meaning of paragraph (a)) if the individual has not yet received a clinical diagnosis for that disease.
genetic relative of an individual (the first individual) means another individual who is related to the first individual by blood.
Note: For example, a sibling, parent, grandparent, aunt, uncle or cousin who is related to the first individual by blood, or a descendant of the first individual.
genetic testing has the meaning given by section 33E.
life insurance contract decision means a decision by an insurer on one or more of the following matters:
(a) whether or not to enter into, or to offer to enter into, a proposed contract of life insurance;
(b) the terms and conditions on which the insurer is to enter into, or to offer to enter into, a proposed contract of life insurance;
(c) whether or not to propose an extension, variation or reinstatement of a contract of life insurance, or to agree to a proposed extension, variation or reinstatement of a contract of life insurance;
(d) the terms and conditions on which the insurer is to propose an extension, variation or reinstatement of a contract of life insurance, or to agree to a proposed extension, variation or reinstatement of a contract of life insurance.
life insurance underwriting means any assessment of risk associated with an individual that is intended to inform a life insurance contract decision.
protected genetic information has the meaning given by section 33F.
solicit, in relation to protected genetic information, has the meaning given by section 33G.
treating medical practitioner of an individual means a legally qualified medical practitioner who has, or has had, responsibility for medical treatment of the individual:
(a) whether or not in Australia; and
(b) whether or not on an ongoing or regular basis.
2 Part IV (heading)
Repeal the heading, substitute:
Part IV,Disclosures, misrepresentations and use of certain information
3 At the end of Part IV
Add:
Division 5,Use of protected genetic information in relation to contracts of life insurance
Subdivision A,Meaning of certain terms
33E Meaning of genetic testing
(1) Genetic testing is any of the following:
(a) analysis or interpretation of information derived from an individual’s deoxyribonucleic acid (DNA), ribonucleic acid (RNA) or chromosome;
(b) analysis or interpretation of information derived from any molecules or factors that influence or modify an individual’s gene expression (including epigenetic tests), conducted to:
(i) detect, infer or predict genotypes or genetic variants; or
(ii) predict the individual’s risk of developing a disease in the future;
(c) analysis or interpretation of information derived from any product of an individual’s gene expression (such as a protein), biomarkers or metabolites, conducted to:
(i) detect, infer or predict genotypes or genetic variants; or
(ii) predict the individual’s risk of developing a disease in the future.
(2) The regulations may prescribe a thing that is taken to be, or not to be, genetic testing. Regulations made for the purposes of this subsection have effect despite anything else in this section.
33F Meaning of protected genetic information
(1) Protected genetic information about an individual is:
(a) information about whether the individual (or a genetic relative of the individual):
(i) has undergone genetic testing; or
(ii) intends to undergo genetic testing; or
(iii) has been recommended to undergo genetic testing; or
(b) information about any genetic testing undergone by the individual (or a genetic relative of the individual), including the results of such testing.
(2) However, neither of the following is protected genetic information about an individual (subject to subsection (4)):
(a) the name of a disease for which the individual (or a genetic relative of the individual) has received a clinical diagnosis, whether or not the clinical diagnosis is based on or informed by genetic testing;
(b) for any disease for which the individual has received a clinical diagnosis, whether or not the clinical diagnosis is based on or informed by genetic testing,any of the following information (not including the actual results of genetic testing):
(i) information about the characteristics, natural history or prognosis of the disease;
(ii) information about any past, current or intended treatment of the disease.
(3) The regulations may provide that a specified thing is taken to be, or not to be, a disease for the purposes of subsection (2).
(4) Subsection (2) does not exclude, from being protected genetic information under subsection (1), information about the individual’s participation in, or information generated in the course of, health or medical research.
(5) The regulations may prescribe information that is taken to be, or not to be, protected genetic information. Regulations made for the purposes of this subsection have effect despite anything else in this section.
33G Meaning of solicit
Requests for information
(1) A person solicits protected genetic information if the person requests, incentivises or otherwise induces or encourages another person:
(a) to provide the protected genetic information; or
(b) to provide a kind of information in which that protected genetic information is included.
Requests or recommendations to undergo testing
(2) A person who requests or recommends that an individual undergo genetic testing is taken to solicit protected genetic information, whether or not the individual undergoes the genetic testing.
Subdivision B,Protected genetic information must not be used in life insurance underwriting
33H Protected genetic information must not be used in life insurance underwriting
Strict liability offence
(1) An insurer commits an offence of strict liability if:
(a) the insurer makes a life insurance contract decision in relation to a contract of life insurance or proposed contract of life insurance; and
(b) in making the decision, the insurer takes into account the results of life insurance underwriting conducted in relation to a life insured; and
(c) protected genetic information about the life insured was solicited or used for the purpose of the life insurance underwriting by:
(i) the insurer; or
(ii) any other person who conducted or assisted with the life insurance underwriting.
Note: See also subsection 46(3) of the Disability Discrimination Act 1992 which deals with the application of Part 2 of that Act to discrimination against a person regarding the provision of a life insurance policy based on protected genetic information.
Penalty: 60 penalty units.
Civil penalty
(2) An insurer contravenes this subsection if:
(a) the insurer makes a life insurance contract decision in relation to a contract of life insurance or proposed contract of life insurance; and
(b) in making the decision, the insurer takes into account the results of life insurance underwriting conducted in relation to a life insured; and
(c) protected genetic information about the life insured was solicited or used for the purpose of the life insurance underwriting by:
(i) the insurer; or
(ii) any other person who conducted or assisted with the life insurance underwriting.
Civil penalty: 5,000 penalty units.
Exception,consent
(3) Subsection (1) or (2) does not apply if:
(a) any of the following knowingly gave the protected genetic information to the insurer, or to another person (an underwriting person) who conducted or assisted with the life insurance underwriting:
(i) the life insured;
(ii) a treating medical practitioner of the life insured who is authorised to do so by the life insured;
(iii) an agent of the life insured acting on behalf of the life insured; and
(b) the protected genetic information was given without the insurer or underwriting person soliciting the protected genetic information; and
(c) the insurer or underwriting person obtained the written consent of the life insured, or an agent of the life insured acting on behalf of the life insured, for use of the protected genetic information in the life insurance underwriting; and
(d) if a form was approved in an instrument under subsection (4) at the time the consent was obtained,the consent was in that form; and
(e) the use of the information did not, in relation to the life insurance contract decision, disadvantage the insured, any life insured or any third party beneficiary under the contract.
Note 1: In proceedings for an offence against subsection (1), the defendant bears an evidential burden in relation to the matter in subsection (3): see subsection 13.3(3) of the Criminal Code. The same applies for a civil penalty under subsection (2) of this section (see section 75U of this Act).
Note 2: See also Australian Privacy Principle 4 which is about dealing with unsolicited personal information.
(4) ASIC may, by notifiable instrument, approve a form for the purposes of paragraph (3)(d).
Interpretation
(5) For the purposes of this section, it is immaterial whether or not protected genetic information was solicited or used solely for life insurance underwriting or for one or more purposes that include life insurance underwriting.
(6) For the purposes of this section (except paragraph (3)(e)), it is immaterial whether the use of protected genetic information about a life insured had any effect on the results of life insurance underwriting.
Subdivision C,Review of operation of this Division etc.
33J Review of operation of this Division etc.
(1) The Minister must cause reviews to be conducted of the operation of the following provisions:
(a) this Division;
(b) subsection 20B(5A);
(c) subsection 21(3A);
(d) section 25A;
(e) subsections 47(3) and (4);
(f) any other provision of this Act to the extent that it relates to a provision mentioned in any of the above paragraphs;
(g) a provision of a legislative instrument made for the purposes of a provision mentioned in any of the above paragraphs.
Note: The provisions mentioned in paragraphs (b), (c) and (d) deal with the disclosure of protected genetic information. The provisions mentioned in paragraph (e) (subsections 47(3) and (4)) deal with pre‑existing sickness or disability in relation to contracts of life insurance.
(2) Without limiting subsection (1), a review under this section must:
(a) consider whether the operation of the provisions is effective in providing reasonable certainty to individuals about the use of protected genetic information in relation to contracts of life insurance; and
(b) identify any unintended consequences of the operation of the provisions.
(3) The person or persons who conduct a review under this section must give the Minister a written report of the review.
(4) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after the Minister receives the report.
(5) Reviews under subsection (1) must be commenced and completed as soon as practicable after each fifth anniversary of the commencement of this section.
4 Application of amendments,use of genetic information
(1) Division 5 of Part IV of the Insurance Contracts Act 1984, as inserted by this Schedule, applies in relation to a life insurance contract decision made on or after the day this item commences (the commencement day), whether any information on which the decision is based was obtained, or came into existence, before, on or after the commencement day.
(2) However, that Division applies in relation to a life insurance contract decision regarding a contract of life insurance entered into before the commencement day only to the extent that the decision relates to a variation or proposed variation of the contract (including a variation or proposed variation involved in a reinstatement or extension of the contract).
Part 2,Other amendments
Disability Discrimination Act 1992
5 At the end of section 46
Add:
Discrimination based on protected genetic information,life insurance
(3) For the purposes of this section, discrimination based on protected genetic information (within the meaning of the Insurance Contracts Act 1984) about a person is taken not to be reasonable if it relates to:
(a) a refusal to offer the person a life insurance policy; or
(b) the terms and conditions on which a life insurance policy is offered to, or may be obtained by, the person.
6 Application of amendment,discrimination
(1) The amendment of section 46 of the Disability Discrimination Act 1992, made by this Part, applies in relation to discrimination occurring on or after the day this item commences (the commencement day).
(2) However, the amendment of that section applies in relation to a life insurance policy entered into before the commencement day only to the extent that the discrimination relates to a variation of the policy (including a variation involved in a reinstatement or extension of the policy):
(a) that is made on or after the commencement day; and
(b) that is not an automatic variation, but is expressly agreed between the person issuing and the person insured under the policy before the policy is varied.
Insurance Contracts Act 1984
7 After subsection 20B(5)
Insert:
(5A) If the relevant contract of insurance is a contract of life insurance, the insured is taken not to have made a misrepresentation merely because the insured did not disclose protected genetic information about a life insured.
8 After subsection 21(3)
Insert:
(3A) Also, if the relevant contract of insurance is a contract of life insurance, the duty of disclosure does not require the disclosure of protected genetic information about a life insured.
9 After section 25
Insert:
25A Non‑disclosure of protected genetic information in relation to contract of life insurance
A person is taken not to have made a misrepresentation in connection with a contract of life insurance merely because, before the contract was entered into, the person did not disclose protected genetic information about a person who, under the contract, became the life insured or one of the life insureds.
10 Subsection 47(2)
Repeal the subsection, substitute:
Contracts other than contract of life insurance
(2) If:
(a) the contract is not a contract of life insurance; and
(b) at the time when contract was entered into, the insured was not aware of, and a reasonable person in the circumstances could not be expected to have been aware of, the sickness or disability;
the insurer may not rely on a provision included in the contract that has the effect of limiting or excluding the insurer’s liability under the contract by reference to a sickness or disability to which the insured was subject at a time before the contract was entered into.
Contracts of life insurance
(3) If:
(a) the contract is a contract of life insurance; and
(b) at the time when the contract was entered into, neither the life insured to whom the claim relates nor the insured (if not the life insured) was aware of, and a reasonable person in the circumstances could not be expected to have been aware of, the sickness or disability;
the insurer may not rely on a provision included in the contract that has the effect of limiting or excluding the insurer’s liability under the contract by reference to a sickness or disability to which the life insured was subject at a time before the contract was entered into.
(4) For the purposes of subsection (3), in determining whether the life insured or insured was aware of, or whether a reasonable person in the circumstances could be expected to have been aware of, the sickness or disability, disregard whether the life insured (or a genetic relative of the life insured) had:
(a) a disease that is of a genetic nature and is a thing prescribed by the regulations for the purposes of this paragraph; or
(b) a genetic predisposition to a disease if:
(i) as at the time the contract was entered into, the life insured (or the genetic relative of the life insured) has not yet received a clinical diagnosis for that disease; and
(ii) the genetic predisposition is not a thing prescribed by the regulations for the purposes of this paragraph.
11 Application of amendments,insurance contracts
(1) The amendments of the Insurance Contracts Act 1984 made by this Part apply in relation to a contract of life insurance that is entered into on or after the day this item commences (the commencement day), not including a contract of life insurance that:
(a) disregarding subsection 11(9) of the Insurance Contracts Act 1984, is entered into before the commencement day; and
(b) is extended, varied or reinstated on or after the commencement day as mentioned in paragraph 11(9)(a) or (c) of the Insurance Contracts Act 1984.
(2) However, the amendments of the Insurance Contracts Act 1984 made by this Part apply on and after the commencement day in relation to a contract of life insurance to which paragraph (1)(a) of this item applies that is varied (including in circumstances where a variation is involved in a reinstatement or extension of the contract), in respect of matters relating to the variation, if:
(a) the variation is made on or after the commencement day; and
(b) the variation is not an automatic variation, but is expressly agreed between the insurer and the insured before the contract is varied.
Schedule 2,Licensing exemptions for foreign financial services providers
Corporations Act 2001
1 Section 9
Insert:
comparable regulator, for a financial service, has the meaning given by subparagraph 911A(2)(ep)(iv).
2 Before section 911A
Insert:
Subdivision A,General
3 After paragraph 911A(2)(en)
Insert:
(eo) all of the following apply:
(i) the financial service is provided only to professional investors;
(ii) the person provides the financial service from a place outside this jurisdiction, unless subsection 911E(1) (about marketing visits) applies to the financial service;
(iii) the person’s head office and principal place of business are located at one or more places outside this jurisdiction;
(iv) the person reasonably believes that providing the same or substantially the same financial service would not contravene any law applying in any of the places referred to in subparagraph (ii) or (iii);
(v) the person notifies ASIC in accordance with subsection (5AA) of this section that the person intends to rely on the exemption in this paragraph for providing the financial service;
Note: There may be exceptions that make this exemption unavailable, and this exemption is subject to conditions (see Subdivision B).
(ep) all of the following apply:
(i) the financial service is provided only to wholesale clients;
(ii) the person is a foreign company or is a partnership formed outside this jurisdiction;
(iii) the person has and maintains any authorisations, registrations or licences (however described) necessary to legally provide the same or substantially the same financial service in a place outside this jurisdiction (the comparable jurisdiction);
(iv) the regulator administering those authorisations, registrations or licences for the comparable jurisdiction is a regulator determined under subsection 911W(1) (the financial service’s comparable regulator);
(v) the person notifies ASIC in accordance with subsection (5AA) of this section that the person intends to rely on the exemption in this paragraph for providing the financial service;
Note: This exemption is subject to conditions (see Subdivision B).
(eq) all of the following apply:
(i) the financial service involves making a market for derivatives that are able to be traded on a licensed market prescribed by the regulations for the purposes of this subparagraph;
(ii) the person provides the financial service from a place outside this jurisdiction;
(iii) the person’s head office and principal place of business are located at one or more places outside this jurisdiction;
(iv) the person reasonably believes that providing the same or substantially the same financial service would not contravene any law applying in any of the places referred to in subparagraph (ii) or (iii);
(v) the person notifies ASIC in accordance with subsection (5AA) of this section that the person intends to rely on the exemption in this paragraph for providing the financial service;
Note: This exemption is subject to conditions (see Subdivision B).
4 After subsection 911A(5A)
Insert:
(5AA) The person may notify ASIC that the person intends to rely on the exemption in paragraph (2)(eo), (ep) or (eq) for providing a financial service:
(a) during the period:
(i) starting on the 15th business day before the first day on which the person starts providing the service; and
(ii) ending on the 15th business day after the first day on which the person starts providing the service; and
(b) by giving ASIC the notice in a written form that:
(i) is approved by ASIC; and
(ii) includes the person’s contact details; and
(iii) describes the service; and
(iv) includes the information, statements, explanations or other matters required by the approved form; and
(v) is accompanied by any other material required by the approved form; and
(vi) is given in a manner required by the approved form (including in electronic form).
Note: A single notice can cover one or more services.
(5AB) The exemption in paragraph (2)(eo), (ep) or (eq) does not apply to providing a financial service after the day (if any) on which the person notifies ASIC in accordance with subsection (5AC) that the person no longer intends to rely on the exemption for providing the financial service.
(5AC) The person must give this notice to ASIC in a written form that:
(a) is approved by ASIC; and
(b) includes the person’s contact details; and
(c) describes the service; and
(d) includes the information, statements, explanations or other matters required by the approved form; and
(e) is accompanied by any other material required by the approved form; and
(f) is given in a manner required by the approved form (including in electronic form).
Note: A single notice can cover one or more services.
(5AD) Notifying ASIC under subsection (5AB) that the person no longer intends to rely on the exemption in paragraph (2)(eo), (ep) or (eq) for providing the financial service does not prevent the person from subsequently notifying ASIC under subsection (5AA) that the person intends to rely again on the exemption for providing the financial service.
5 At the end of Division 2 of Part 7.6
Add:
Subdivision B,Extensions, exceptions and conditions for certain licensing exemptions for foreign financial services providers
911E Exemption for financial services provided to professional investors,extends to financial services provided in Australia during limited marketing visits
(1) For the purposes of subparagraph 911A(2)(eo)(ii), this subsection applies to a financial service provided by a person:
(a) from this jurisdiction; and
(b) on a day during a financial year;
if the financial service is provided during one or more marketing visits to this jurisdiction by a representative of the person.
(2) However, subsection (1) does not apply to the financial service for that day if:
(a) the day is during a marketing visit by a representative of the person; and
(b) at the start of that day, the total length of marketing visits to this jurisdiction during the financial year by the representative is already 28 days or more.
(3) For the purposes of paragraph (2)(b), work out the total length of those marketing visits as follows:
(a) count each marketing visit to this jurisdiction:
(i) by the representative of the person; and
(ii) that includes time spent by the representative with any client (or prospective client) of the person in relation to any financial service; and
(iii) whether or not the visit has ended;
(b) count each whole day of the visit on which the representative spent time with a client (or prospective client);
(c) count as a whole day any part day at the start or end of the visit if the representative spent time with a client (or prospective client) on the day;
(d) for the purposes of this subsection, time is spent by the representative with a client (or prospective client), whether or not more than one representative of the person spent the time with the client (or prospective client).
(4) A reference in this section to a marketing visit by a representative of the person includes a reference to a marketing visit by the representative and one or more other representatives of the person.
911F Exemption for financial services provided to professional investors,regulations may provide exceptions
Despite paragraph 911A(2)(eo), the regulations may provide that the exemption under that paragraph does not apply for:
(a) a particular kind of financial service; or
(b) a particular kind of financial service in relation to a particular kind of financial product; or
(c) a particular kind of financial product; or
(d) a particular kind of professional investor.
911G Certain licensing exemptions for foreign financial services providers are subject to conditions
Conditions for the exemption for financial services provided to professional investors
(1) The exemption under paragraph 911A(2)(eo) applies to a person for a financial service subject to conditions. These conditions for the exemption are:
(a) the conditions in subsection 911H(2) and sections 911J, 911K, 911L and 911M; and
(b) any additional conditions imposed under section 911U for the exemption’s future application to the person.
Note: ASIC may cancel the exemption from applying to the person if:
(a) the person contravenes any of these conditions, other than the condition in section 911M; or
(b) ASIC reasonably believes that the person has contravened the condition in section 911M (about providing financial services efficiently, honestly and fairly); or
(c) ASIC reasonably believes that the person (or a related person) is not a fit and proper person;
(see sections 911R and 911S).
Conditions for the exemption for comparably regulated providers
(2) The exemption under paragraph 911A(2)(ep) applies to a person for a financial service subject to conditions. These conditions for the exemption are:
(a) the conditions in sections 911H, 911J, 911K, 911L, 911M, 911N and 911P; and
(b) any additional conditions imposed under section 911U for the exemption’s future application to the person.
Note: ASIC may cancel the exemption from applying to the person if:
(a) the person contravenes any of these conditions, other than the condition in section 911M; or
(b) ASIC reasonably believes that the person has contravened the condition in section 911M (about providing financial services efficiently, honestly and fairly); or
(c) ASIC reasonably believes that the person (or a related person) is not a fit and proper person;
(see sections 911R and 911S).
Conditions for the exemption for making a market for derivatives able to be traded on certain licensed markets
(3) The exemption under paragraph 911A(2)(eq) applies to a person for a financial service subject to conditions. These conditions for the exemption are:
(a) the conditions in sections 911H, 911J, 911L and 911M; and
(b) any additional conditions imposed under section 911U for the exemption’s future application to the person.
Note: ASIC may cancel the exemption from applying to the person if:
(a) the person contravenes any of these conditions, other than the condition in section 911M; or
(b) ASIC reasonably believes that the person has contravened the condition in section 911M (about providing financial services efficiently, honestly and fairly); or
(c) ASIC reasonably believes that the person (or a related person) is not a fit and proper person;
(see sections 911R and 911S).
Contravening a condition may result in a civil penalty
(4) A person contravenes this subsection if:
(a) apart from the exemption under paragraph 911A(2)(eo), (ep) or (eq), the person would contravene subsection 911A(5B) in relation to providing a financial service; and
(b) the person contravenes a condition for the exemption.
Note 1: This subsection is a civil penalty provision (see section 1317E).
Note 2: The conditions set out in this Subdivision apply to one or more of the exemptions referred to in subsections (1), (2) and (3).
Note 3: A condition set out in this Subdivision can require something to be done outside of Australia (see subsection 5(4)).
911H Certain licensing exemptions for foreign financial services providers,conditions about assisting ASIC and submitting to Australian jurisdiction
(1) For the purposes of section 911G, this section sets out conditions for a person that proposes to rely on the exemption under paragraph 911A(2)(eo), (ep) or (eq) for providing one or more kinds of financial service.
Giving ASIC such assistance as ASIC reasonably requests
(2) For the exemption under paragraph 911A(2)(eo), (ep) or (eq), the person must give such assistance to ASIC, or a person authorised by ASIC, as ASIC or the authorised person reasonably requests in relation to the performance of ASIC’s functions or the exercise of ASIC’s powers.
Submitting to the non‑exclusive jurisdiction of Australian courts for proceedings brought by ASIC
(3) For the exemption under paragraph 911A(2)(ep) or (eq), the person must notify ASIC that the person agrees:
(a) that legal proceedings relating to providing any of the kinds of financial service in reliance on the exemption may be brought in a Court by ASIC or another Commonwealth authority; and
(b) if such proceedings are brought in a Court,that the law relating to providing such a service is the law in force in this jurisdiction; and
(c) subject to subsection (5) of this section, to comply with any order of a Court from such proceedings.
(4) The person must give the notice under subsection (3) to ASIC:
(a) during the period:
(i) starting on the 15th business day before the first day on which the person intends to start providing any of the kinds of financial service in reliance on the exemption; and
(ii) ending on the 15th business day after the first day on which the person starts providing any of the kinds of financial service in reliance on the exemption; and
(b) in a written form that:
(i) is approved by ASIC; and
(ii) includes the information, statements, explanations or other matters required by the approved form; and
(iii) is accompanied by any other material required by the approved form; and
(iv) is given in a manner required by the approved form (including in electronic form).
Note: A single notice can cover one or more of the notifiable kinds of service.
(5) Paragraph (3)(c) does not require compliance with an order to the extent that the order conflicts with an order made by a court in:
(a) for the exemption under paragraph 911A(2)(ep),a comparable jurisdiction referred to in subparagraph 911A(2)(ep)(iii) for such a service; or
(b) for the exemption under paragraph 911A(2)(eq),any of the places referred to in subparagraph 911A(2)(eq)(ii) or (iii) for such a service.
911J Certain licensing exemptions for foreign financial services providers,condition to comply with ASIC directions
(1) For the purposes of section 911G, this section sets out a condition for a person that proposes to rely on the exemption under paragraph 911A(2)(eo), (ep) or (eq) for providing one or more kinds of financial service.
(2) ASIC may, by giving written notice to the person, direct the person to give ASIC a statement containing specified information about one or more of the following:
(a) one or more of those financial services;
(b) one or more of those kinds of financial service;
(c) the person’s related financial services business.
(3) Directions given under subsection (2) to the person:
(a) may be given at any time; and
(b) may require a statement containing information to be given to ASIC on a periodic basis, or each time a particular event or circumstance occurs, without ASIC having to give a further direction; and
(c) may require each statement to be given to ASIC in a written form that:
(i) is approved by ASIC; and
(ii) includes the information, statements, explanations or other matters required by the approved form; and
(iii) is accompanied by any other material required by the approved form; and
(iv) is given in a manner required by the approved form (including in electronic form).
(4) The person must comply with a direction given under subsection (2):
(a) within the time specified in the direction if that is a reasonable time; or
(b) in any other case,within a reasonable time.
ASIC may extend the time within which the person must comply with the direction by giving written notice to the person.
911K Certain licensing exemptions for foreign financial services providers,condition about giving notice of the exemption to each recipient of a kind of financial service
(1) For the purposes of section 911G, this section sets out a condition for a person that proposes to rely on the exemption under paragraph 911A(2)(eo) or (ep) for providing one or more kinds of financial service.
(2) The person must provide written notice to each recipient of each of those kinds of financial service either:
(a) before the person starts providing that kind of financial service to the recipient in reliance on the exemption; or
(b) if that is not practicable,as soon as practicable after starting to do so.
(3) The notice must include:
(a) a statement to the effect that the person is exempt from the requirement to hold an Australian financial services licence covering the provision of that kind of financial service; and
(b) a statement explaining either that:
(i) the exemption is under paragraph 911A(2)(eo) of this Act, which is an exemption for a financial service provided only to professional investors; or
(ii) the exemption is under paragraph 911A(2)(ep) of this Act, which is an exemption for a financial service provided only to wholesale clients.
Note 1: The notice only needs to be given once to each recipient for each exemption for that kind of financial service.
Note 2: A single notice can cover one or more of those kinds of financial service.
Note 3: For subsection (2), the recipient will be:
(a) for the exemption under paragraph 911A(2)(eo),a professional investor; or
(b) for the exemption under paragraph 911A(2)(ep),a wholesale client.
911L Certain licensing exemptions for foreign financial services providers,condition to notify ASIC of changes to contact details
(1) For the purposes of section 911G, this section sets out a condition for a person that proposes to rely on the exemption under paragraph 911A(2)(eo), (ep) or (eq) for providing one or more kinds of financial service.
(2) The person must notify ASIC of any change to the person’s contact details:
(a) as soon as practicable after the change happens; and
(b) by giving the notice to ASIC in a written form that:
(i) is approved by ASIC; and
(ii) includes the information, statements, explanations or other matters required by the approved form; and
(iii) is accompanied by any other material required by the approved form; and
(iv) is given in a manner required by the approved form (including in electronic form).
911M Certain licensing exemptions for foreign financial services providers,condition to ensure that financial services are provided efficiently, honestly and fairly
(1) For the purposes of section 911G, this section sets out a condition for a person that proposes to rely on the exemption under paragraph 911A(2)(eo), (ep) or (eq) for providing one or more kinds of financial service.
(2) If the financial services business that the person carries on is carried on predominantly inside this jurisdiction, the person must do all things necessary to ensure that financial services provided in reliance on the exemption are provided efficiently, honestly and fairly.
(3) Subsection (2) does not apply to the extent that:
(a) the financial services involve:
(i) providing financial product advice; or
(ii) dealing in a financial product; or
(iii) making a market for a financial product;
where the financial product is able to be traded on a financial market not operated under a licence under subsection 795B(1) (about Australian market licences); or
(b) the financial services involve:
(i) providing financial product advice; or
(ii) dealing in a financial product; or
(iii) making a market for a financial product;
where the financial product is a derivative having a consideration or value that is ultimately determined, derived from or varied by reference to the value or amount of something else that is located outside this jurisdiction; or
(c) the financial services are custodial or depository services involving holding financial products, or beneficial interests in financial products, if:
(i) the financial products were issued outside this jurisdiction; and
(ii) the financial products, or the beneficial interests, are being held outside this jurisdiction; or
(d) circumstances exist that are of a kind prescribed by the regulations for the purposes of this paragraph.
Note: For paragraph (b), the thing located outside this jurisdiction could be, for example, an asset, a rate, an index or a commodity (see paragraph 761D(1)(c)).
911N Exemption for comparably regulated providers,information about the person and investigations etc.
(1) For the purposes of subsection 911G(2), this section sets out conditions for a person that proposes to rely on the exemption under paragraph 911A(2)(ep) for providing one or more kinds of financial service.
Consent to information sharing between ASIC and any comparable regulator
(2) During the period:
(a) starting on the 15th business day before the first day on which the person intends to start providing one or more kinds of financial service in reliance on the exemption; and
(b) ending on the 15th business day after the first day on which the person starts providing one or more kinds of financial service in reliance on the exemption;
for each of those kinds of financial service, the person must notify ASIC that the person consents to:
(c) ASIC; and
(d) the comparable regulator for each financial service of that kind;
sharing information about the person.
(3) The person must give this notice to ASIC in a written form that:
(a) is approved by ASIC; and
(b) includes the information, statements, explanations or other matters required by the approved form; and
(c) is accompanied by any other material required by the approved form; and
(d) is given in a manner required by the approved form (including in electronic form).
Note: A single notice can cover one or more of those kinds of financial service.
Notifying ASIC of investigations etc. in other jurisdictions
(4) The person must notify ASIC of any significant enforcement action taken, any significant disciplinary action taken or any significant investigation undertaken against the person by:
(a) any regulator in any place outside this jurisdiction; or
(b) any government authority in any place outside this jurisdiction; or
(c) any operator of a financial market, in any place outside this jurisdiction, in which the person is a participant.
(5) The person must give this notice to ASIC:
(a) as soon as practicable, and before the 15th business day, after the day on which the person becomes aware, or would reasonably be expected to have become aware, of the action or investigation; and
(b) by giving the notice to ASIC in a written form that:
(i) is approved by ASIC; and
(ii) includes the information, statements, explanations or other matters required by the approved form; and
(iii) is accompanied by any other material required by the approved form; and
(iv) is given in a manner required by the approved form (including in electronic form).
(6) Subsection (4) does not apply to the extent that complying with subsection (4) would be contrary to another law in force in this jurisdiction or elsewhere.
911P Exemption for comparably regulated providers,agents
(1) For the purposes of subsection 911G(2), this section sets out conditions for a person that proposes to rely on the exemption under paragraph 911A(2)(ep) for providing one or more kinds of financial service.
Having an agent when providing each of those financial services
(2) The person must have an agent in this jurisdiction when providing each of those financial services in reliance on the exemption unless the consecutive period during which the person so provides the financial service without an agent is less than 10 business days.
(3) The person must ensure that:
(a) if the person is a foreign company,the person’s agent is appointed under Division 2 of Part 5B.2 as the person’s local agent; or
(b) if the person is not a foreign company but is a partnership formed outside this jurisdiction,the person complies with any obligations under paragraph 912A(1)(j) relating to the person’s agent that the person would have to comply with if the person were a financial services licensee.
Note: For paragraph (a), a foreign company that appoints a local agent must give ASIC a statement under subsection 601CG(4).
911Q Any of the exemptions,person must notify ASIC of any contravention of a condition for the exemption
If a person contravenes a condition for an exemption under paragraph 911A(2)(eo), (ep) or (eq) that applies to the person, the person must provide ASIC with full particulars of the contravention:
(a) as soon as practicable, and before the 30th business day, after the day on which the person becomes aware, or would reasonably be expected to have become aware, of the contravention; and
(b) by giving the particulars to ASIC in a written form that:
(i) is approved by ASIC; and
(ii) includes the information, statements, explanations or other matters required by the approved form; and
(iii) is accompanied by any other material required by the approved form; and
(iv) is given in a manner required by the approved form (including in electronic form).
Note 1: A failure to provide ASIC with particulars of the contravention may result in ASIC imposing additional conditions for the exemption (see section 911U).
Note 2: For the conditions for an exemption, see subsection 911G(1), (2) or (3).
911R Cancelling any of the exemptions,person contravenes a condition for the exemption
(1) ASIC may, in writing, decide to cancel an exemption under paragraph 911A(2)(eo), (ep) or (eq) from:
(a) applying to a person for providing one or more specified kinds of financial service; or
(b) applying to a person for providing any kind of financial service;
if the person contravenes a condition for the exemption (see subsection 911G(1), (2) or (3)), other than the condition in section 911M.
Note 1: Paragraphs (a) and (b) mean the cancellation may be partial or complete.
Note 2: For an alternative to partially or completely cancelling the exemption, see section 911U.
(2) ASIC may, in writing, decide to cancel an exemption under paragraph 911A(2)(eo), (ep) or (eq) from:
(a) applying to a person for providing one or more specified kinds of financial service; or
(b) applying to a person for providing any kind of financial service;
if ASIC reasonably believes that the person has contravened the condition in section 911M (about providing financial services efficiently, honestly and fairly) for the exemption.
Note 1: Paragraphs (a) and (b) mean the cancellation may be partial or complete.
Note 2: For an alternative to partially or completely cancelling the exemption, see section 911U.
911S Cancelling any of the exemptions,person fails the fit and proper person test
(1) ASIC may, in writing, decide to cancel an exemption under paragraph 911A(2)(eo), (ep) or (eq) from applying to a person for providing any kind of financial service if ASIC reasonably believes that:
(a) the person (the first person) is not a fit and proper person to provide a financial service; or
(b) a person mentioned in a paragraph of subsection 913BA(1) in relation to the first person is not a fit and proper person for a purpose mentioned in that paragraph (assuming any reference in that paragraph to a licence were a reference to the exemption).
Note: A cancellation under this subsection is a complete cancellation.
(2) In considering whether a person referred to in paragraph (1)(a) or (b) is fit and proper for a purpose referred to in that paragraph, ASIC must have regard to the matters in section 913BB.
911T Procedures for cancelling any of the exemptions
ASIC must first give a show cause notice
(1) ASIC may only decide under section 911R or 911S to cancel an exemption from applying to a person after:
(a) taking reasonable steps to give the person written notice of:
(i) the proposed cancellation and the reasons for it; and
(ii) the opportunity to appear (or be represented) at a hearing before ASIC that takes place in private, and to make submissions to ASIC in relation to the matter; and
(b) taking into account any information given to ASIC at such a hearing or in such submissions.
Note: For decisions under section 911R, this subsection applies whether the cancellation is partial as described in paragraph 911R(1)(a) or (2)(a) or is complete as described in paragraph 911R(1)(b) or (2)(b).
Notice of cancellation
(2) If ASIC decides under section 911R or 911S to cancel an exemption from applying to a person, ASIC must take reasonable steps to give the person written notice of:
(a) the cancellation and the reasons for it; and
(b) the day the cancellation is to take effect (which must not be before the day the notice is given to the person).
Note: The notice could also include notice of the person’s right to seek review of the decision (see subsection 1317D(2)).
911U Imposing additional conditions as an alternative to cancelling an exemption
(1) ASIC may, in writing, decide to impose one or more additional conditions for the future application of an exemption under paragraph 911A(2)(eo), (ep) or (eq) to a person for providing one or more specified kinds, or any kind, of financial service if:
(a) the person contravenes a condition for the exemption (see subsection 911G(1), (2) or (3)); or
(b) the person fails to comply with section 911Q in relation to a contravention of a condition for the exemption.
Note 1: If the person contravenes any of these additional conditions, ASIC may:
(a) cancel the exemption partially or completely (see section 911R); or
(b) vary the additional condition, or impose another additional condition, under this section.
Note 2: The contravention may also result in a civil penalty (see subsection 911G(4)).
(2) ASIC may, in writing, vary or revoke a condition imposed under subsection (1):
(a) on the person’s request under subsection (3); or
(b) on ASIC’s own initiative.
(3) The person may request a condition imposed under subsection (1) to be varied or revoked by giving the request to ASIC in a written form that:
(a) is approved by ASIC; and
(b) includes the information, statements, explanations or other matters required by the approved form; and
(c) is accompanied by any other material required by the approved form; and
(d) is given in a manner required by the approved form (including in electronic form).
911V Procedures for additional conditions
(1) This section applies if ASIC is proposing to make any of the following decisions (the proposed decision) under section 911U in relation to a person:
(a) imposing an additional condition;
(b) varying an additional condition on ASIC’s own initiative;
(c) refusing to comply with a request made by the person under subsection 911U(3).
ASIC must first give a show cause notice
(2) ASIC may only make the proposed decision after:
(a) taking reasonable steps to give the person written notice of:
(i) the proposed decision and the reasons for it; and
(ii) the opportunity to appear (or be represented) at a hearing before ASIC that takes place in private, and to make submissions to ASIC in relation to the matter; and
(b) taking into account any information given to ASIC at such a hearing or in such submissions.
Notice of making the proposed decision
(3) If ASIC makes the proposed decision, ASIC must take reasonable steps to give the person written notice of:
(a) the decision and the reasons for it; and
(b) the day the decision is to take effect (which must not be before the day the notice is given to the person).
Note: The notice could also include notice of the person’s right to seek review of the decision (see subsection 1317D(2)).
911W List of comparable regulators
(1) The Minister may, by legislative instrument, determine regulators that administer broadly comparable regulatory regimes of authorisations, registrations or licences (however described) necessary to legally provide financial services in places outside this jurisdiction.
Note: Regulators determined under this subsection are relevant for:
(a) the licensing exemption under paragraph 911A(2)(ep); and
(b) the exemptions under subsections 913B(2A) and 914B(2A) from the fit and proper person test.
Matters to have regard to when making determinations
(2) In deciding whether to determine a regulator under subsection (1), the Minister must have regard to:
(a) whether the regulatory regime that the regulator administers produces broadly comparable outcomes to this jurisdiction in regulating and improving the performance of:
(i) the relevant financial services system; and
(ii) the financial services providers in that system; and
(b) whether that regulatory regime is clear, transparent, certain and adequately enforced; and
(c) whether that regulatory regime is broadly consistent with the Objectives and Principles of Securities Regulation, developed by the International Organization of Securities Commissions (IOSCO) and as in force from time to time; and
(d) whether the regulator:
(i) is a signatory to the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information, developed by the IOSCO and as in force from time to time; or
(ii) is a party to any other effective cooperation arrangement with ASIC; and
(e) any relevant submission received:
(i) from the regulator; or
(ii) from any entity in relation to the regulator or that regulatory regime; and
(f) any relevant advice (including any assessment) received from ASIC in relation to the regulator or that regulatory regime; and
(g) any other matters prescribed by the regulations for the purposes of this paragraph.
The Minister may also have regard to any other matter that the Minister considers relevant.
Note: The Objectives and Principles of Securities Regulation mentioned in paragraph (c), and the memorandum mentioned in subparagraph (d)(i), could in 2026 be viewed on IOSCO’s website (https://www.iosco.org).
(3) To assist the Minister to decide whether to determine a regulator under subsection (1), ASIC may:
(a) give advice to the Minister; and
(b) if the Minister requests, include with the advice an assessment of one or more of the matters in subsection (2) in relation to the regulator or the regulatory regime that the regulator administers.
6 At the end of subsection 913B(1)
Add:
Note 3: There is an exemption from paragraph (c) for certain foreign companies or partnerships (see subsection (2A)).
7 After subsection 913B(2)
Insert:
Fit and proper person test does not apply to certain foreign companies or partnerships
(2A) Paragraph (1)(c) does not apply to an applicant for an Australian financial services licence if:
(a) the applicant is a foreign company or is a partnership formed outside this jurisdiction; and
(b) the licence, if granted, would be restricted to the provision of financial services to wholesale clients; and
(c) the applicant holds any authorisations, registrations or licences (however described) that:
(i) are necessary to legally provide the same or substantially the same financial services in a place outside this jurisdiction; and
(ii) are issued (however described) by a regulator determined under subsection 911W(1).
8 Before subsection 914B(2)
Insert:
Refusing to grant the application if the fit and proper person test is not satisfied
9 After subsection 914B(2)
Insert:
(2A) However, subsection (2) does not apply if:
(a) the applicant is a foreign company or is a partnership formed outside this jurisdiction; and
(b) the licence, if the application is granted, would be restricted to the provision of financial services to wholesale clients; and
(c) the applicant holds any authorisations, registrations or licences (however described) that:
(i) are necessary to legally provide the same or substantially the same financial services in a place outside this jurisdiction; and
(ii) are issued (however described) by a regulator determined under subsection 911W(1).
10 In the appropriate position in subsection 1317E(3) (table)
Insert:
subsection 911G(4)
contravening a condition of a licensing exemption for foreign financial services providers
uncategorised
11 In the appropriate position in Chapter 10
Insert:
Part 10.65,Transitional provisions relating to the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026
1695 Application of amendments,exemptions from the requirement to hold an Australian financial services licence
Paragraphs 911A(2)(eo), (ep) and (eq), as inserted by Schedule 2 to the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026, apply in relation to financial services provided on or after the commencement of that Schedule.
1695A Application of amendments,exemption from the fit and proper person test
(1) Subsection 913B(2A), as inserted by Schedule 2 to the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026, applies in relation to applications for Australian financial services licences made on or after the commencement of that Schedule.
(2) Subsection 914B(2A), as inserted by Schedule 2 to the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026, applies in relation to applications:
(a) for ASIC to take certain action in relation to Australian financial services licences; and
(b) that are made on or after the commencement of that Schedule;
whether the licences were granted before, on or after that commencement.
1695B Transitional,first list of comparable regulators
Subsection 911W(2) does not apply in relation to the determination of a regulator in the first legislative instrument made under subsection 911W(1) after the commencement of Schedule 2 to the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026 if the Minister is satisfied that:
(a) the regulator can be identified from a legislative instrument made by ASIC and in force immediately before the commencement of that Schedule; and
(b) the regulator is responsible for regulating the provision of financial services by providers in a place outside this jurisdiction; and
(c) the legislative instrument exempted those providers from certain provisions of Part 7.6 (about licensing of providers of financial services) in relation to the provision of financial services.
Schedule 3,Multilateral development banks,modernising and technical amendments
Part 1,Main amendments
Asian Development Bank Act 1966
1 Section 3
Insert:
relevant financial obligation has the meaning given by section 3A.
2 After section 3
Insert:
3A Meaning of relevant financial obligation
(1) For the purposes of this Act, a relevant financial obligation is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:
(a) the obligation requires (or could require) Australia to make one or more payments;
(b) the obligation is undertaken or imposed under:
(i) the Bank Agreement; or
(ii) an agreement or arrangement between Australia and the Bank (other than an agreement mentioned in section 8CA of the International Monetary Agreements Act 1947); or
(iii) a resolution adopted by the Board of Governors of the Bank;
(c) for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii),the agreement, arrangement or resolution relates to Australia:
(i) purchasing or subscribing to shares of the capital stock of the Bank; or
(ii) purchasing a bond, debenture, convertible note or similar financial instrument issued by the Bank; or
(iii) granting a guarantee in support of the purpose of the Bank; or
(iv) providing any other form of financial accommodation in support of the purpose of the Bank;
(d) the obligation is not excluded by a determination under subsection (4).
(2) However, for the purposes of this Act:
(a) an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation only if notice of the obligation has been given under subsection (5); and
(b) an increase in an amount of a relevant financial obligation because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).
(3) To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.
Note: For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).
Minister may exclude obligations
(4) The Minister may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).
Notification of new financial obligations
(5) The Minister may, by legislative instrument, give notice of:
(a) the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or
(b) an increase in an amount for the purposes of paragraph (2)(b).
(6) A legislative instrument under subsection (5) commences at the later of the following days or times:
(a) the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;
(b) the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.
3 Section 4
Repeal the section, substitute:
4 Appropriation
The Consolidated Revenue Fund is appropriated for the purposes of:
(a) making any payments necessary to meet relevant financial obligations; and
(b) making any payments necessary to redeem securities issued under section 5.
4 Section 5
Repeal the section, substitute:
5 Issue of securities
(1) To the extent that the Bank or another body is prepared to accept promissory notes or other securities issued by Australia in place of any payment that Australia is required to make to the Bank or other body in accordance with a relevant financial obligation, the Minister may make and issue those securities.
(2) A security issued under subsection (1) is to be:
(a) non‑negotiable; and
(b) non‑interest bearing; and
(c) payable to the Bank or other body at its par value on demand.
6 Delegation by the Minister
(1) The Minister may, in writing, delegate all or any of the Minister’s powers under section 5 to:
(a) the Secretary of the Department; or
(b) an SES employee, or an acting SES employee, in the Department.
Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.
(2) A person exercising powers under a delegation under subsection (1) must comply with any written directions of the Minister under subsection (3).
(3) The Minister may, in writing, give directions for the purposes of subsection (2).
Asian Infrastructure Investment Bank Act 2015
5 Section 3
Omit:
• Australia may make a payment to the Bank:
(a) if Australia is required to make the payment by way of subscription to shares in the Bank; or
(b) if Australia is otherwise required to make the payment in accordance with the Bank Agreement.
• The Minister may, on behalf of Australia, make promissory notes and issue them to the Bank.
substitute:
• Australia may make payments to the Bank or another body in connection with its membership of the Bank, including by issuing securities.
6 Section 4
Insert:
relevant financial obligation has the meaning given by section 4A.
7 Sections 5, 6 and 7
Repeal the sections, substitute:
4A Meaning of relevant financial obligation
(1) For the purposes of this Act, a relevant financial obligation is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:
(a) the obligation requires (or could require) Australia to make one or more payments;
(b) the obligation is undertaken or imposed under:
(i) the Bank Agreement; or
(ii) an agreement or arrangement between Australia and the Bank; or
(iii) a resolution adopted by the Board of Governors of the Bank;
(c) for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii),the agreement, arrangement or resolution relates to Australia:
(i) purchasing or subscribing to shares of the capital stock of the Bank; or
(ii) purchasing a bond, debenture, convertible note or similar financial instrument issued by the Bank; or
(iii) granting a guarantee in support of the purpose of the Bank; or
(iv) providing any other form of financial accommodation in support of the purpose of the Bank;
(d) the obligation is not excluded by a determination under subsection (4).
(2) However, for the purposes of this Act:
(a) an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation only if notice of the obligation has been given under subsection (5); and
(b) an increase in an amount of a relevant financial obligation because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).
(3) To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.
Note: For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).
Minister may exclude obligations
(4) The Minister may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).
Notification of new financial obligations
(5) The Minister may, by legislative instrument, give notice of:
(a) the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or
(b) an increase in an amount for the purposes of paragraph (2)(b).
(6) A legislative instrument under subsection (5) commences at the later of the following days or times:
(a) the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;
(b) the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.
5 Issue of securities
(1) To the extent that the Bank or another body is prepared to accept promissory notes or other securities issued by Australia in place of any payment that Australia is required to make to the Bank or other body in accordance with a relevant financial obligation, the Minister may make and issue those securities.
(2) A security issued under subsection (1) is to be:
(a) non‑negotiable; and
(b) non‑interest bearing; and
(c) payable to the Bank or other body at its par value on demand.
6 Appropriation
The Consolidated Revenue Fund is appropriated for the purposes of:
(a) making any payments necessary to meet relevant financial obligations; and
(b) making any payments necessary to redeem securities issued under section 5.
7 Delegation by the Minister
(1) The Minister may, in writing, delegate all or any of the Minister’s powers under section 5 to:
(a) the Secretary of the Department; or
(b) an SES employee, or an acting SES employee, in the Department.
Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.
(2) A person exercising powers under a delegation under subsection (1) must comply with any written directions of the Minister under subsection (3).
(3) The Minister may, in writing, give directions for the purposes of subsection (2).
European Bank for Reconstruction and Development Act 1990
8 Section 3
Insert:
relevant financial obligation has the meaning given by section 3A.
9 After section 3
Insert:
3A Meaning of relevant financial obligation
(1) For the purposes of this Act, a relevant financial obligation is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:
(a) the obligation requires (or could require) Australia to make one or more payments;
(b) the obligation is undertaken or imposed under:
(i) the Bank Agreement; or
(ii) an agreement or arrangement between Australia and the Bank; or
(iii) a resolution adopted by the Board of Governors of the Bank;
(c) for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii),the agreement, arrangement or resolution relates to Australia:
(i) purchasing or subscribing to shares of the capital stock of the Bank; or
(ii) purchasing a bond, debenture, convertible note or similar financial instrument issued by the Bank; or
(iii) granting a guarantee in support of the purpose of the Bank; or
(iv) providing any other form of financial accommodation in support of the purpose of the Bank;
(d) the obligation is not excluded by a determination under subsection (4).
(2) However, for the purposes of this Act:
(a) an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation only if notice of the obligation has been given under subsection (5); and
(b) an increase in an amount of a relevant financial obligation because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).
(3) To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.
Note: For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).
Treasurer may exclude obligations
(4) The Treasurer may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).
Notification of new financial obligations
(5) The Treasurer may, by legislative instrument, give notice of:
(a) the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or
(b) an increase in an amount for the purposes of paragraph (2)(b).
(6) A legislative instrument under subsection (5) commences at the later of the following days or times:
(a) the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;
(b) the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.
10 Sections 4 and 5
Repeal the sections, substitute:
4 Appropriation
The Consolidated Revenue Fund is appropriated for the purposes of:
(a) making any payments necessary to meet relevant financial obligations; and
(b) making any payments necessary to redeem securities issued under section 5.
5 Issue of securities
(1) To the extent that the Bank or another body is prepared to accept promissory notes or other securities issued by Australia in place of any payment that Australia is required to make to the Bank or other body in accordance with a relevant financial obligation, the Treasurer may make and issue those securities.
(2) A security issued under subsection (1) is to be:
(a) non‑negotiable; and
(b) non‑interest bearing; and
(c) payable to the Bank or other body at its par value on demand.
6 Delegation by the Treasurer
(1) The Treasurer may, in writing, delegate all or any of the Treasurer’s powers under section 5 to:
(a) the Secretary of the Department; or
(b) an SES employee, or an acting SES employee, in the Department.
Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.
(2) A person exercising powers under a delegation under subsection (1) must comply with any written directions of the Treasurer under subsection (3).
(3) The Treasurer may, in writing, give directions for the purposes of subsection (2).
International Finance Corporation Act 1955
11 Section 3
Insert:
relevant financial obligation has the meaning given by section 4A.
12 Section 3 (definition of the Agreement)
Repeal the definition, substitute:
the Agreement means the Articles of Agreement of the International Finance Corporation, done at Washington on 25 May 1955, as in force for Australia from time to time.
Note: The Agreement is in Australian Treaty Series 1956 No. 14 ([1956] ATS 14) and could in 2026 be viewed in the Australian Treaties Library on the AustLII website (https://www.austlii.edu.au).
13 Sections 5, 5A and 5B
Repeal the sections, substitute:
4A Meaning of relevant financial obligation
(1) For the purposes of this Act, a relevant financial obligation is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:
(a) the obligation requires (or could require) Australia to make one or more payments;
(b) the obligation is undertaken or imposed under:
(i) the Agreement; or
(ii) an agreement or arrangement between Australia and the International Finance Corporation (other than an agreement mentioned in section 8CA of the International Monetary Agreements Act 1947); or
(iii) a resolution adopted by the Board of Governors of the International Finance Corporation;
(c) for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii),the agreement, arrangement or resolution relates to Australia:
(i) purchasing or subscribing to shares of the capital stock of the International Finance Corporation; or
(ii) purchasing a bond, debenture, convertible note or similar financial instrument issued by the International Finance Corporation; or
(iii) granting a guarantee in support of the purpose of the International Finance Corporation; or
(iv) providing any other form of financial accommodation in support of the purpose of the International Finance Corporation;
(d) the obligation is not excluded by a determination under subsection (4).
(2) However, for the purposes of this Act:
(a) an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation only if notice of the obligation has been given under subsection (5); and
(b) an increase in an amount of a relevant financial obligation because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).
(3) To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.
Note: For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).
Minister may exclude obligations
(4) The Minister may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).
Notification of new financial obligations
(5) The Minister may, by legislative instrument, give notice of:
(a) the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or
(b) an increase in an amount for the purposes of paragraph (2)(b).
(6) A legislative instrument under subsection (5) commences at the later of the following days or times:
(a) the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;
(b) the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.
5 Appropriation for relevant financial obligations
The Consolidated Revenue Fund is appropriated for the purposes of making any payments necessary to meet relevant financial obligations.
International Monetary Agreements Act 1947
14 Section 3
Insert:
relevant financial obligation, in relation to the Bank, has the meaning given by section 3A.
15 After section 3
Insert:
3A Meaning of relevant financial obligation in relation to the Bank
(1) For the purposes of this Act, a relevant financial obligation in relation to the Bank is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:
(a) the obligation requires (or could require) Australia to make one or more payments;
(b) the obligation is undertaken or imposed under:
(i) the Bank Agreement; or
(ii) an agreement or arrangement between Australia and the Bank (other than an agreement mentioned in section 8CA); or
(iii) a resolution adopted by the Board of Governors of the Bank;
(c) for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii),the agreement, arrangement or resolution relates to Australia:
(i) purchasing or subscribing to shares of the capital stock of the Bank; or
(ii) purchasing a bond, debenture, convertible note or similar financial instrument issued by the Bank; or
(iii) granting a guarantee in support of the purposes of the Bank; or
(iv) providing any other form of financial accommodation in support of the purposes of the Bank;
(d) the obligation is not excluded by a determination under subsection (5).
(2) However, for the purposes of this Act:
(a) an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation in relation to the Bank only if notice of the obligation has been given under subsection (5); and
(b) an increase in an amount of a relevant financial obligation in relation to the Bank because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).
(3) To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.
Note: For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).
Treasurer may exclude obligations
(4) The Treasurer may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).
Notification of new financial obligations
(5) The Treasurer may, by legislative instrument, give notice of:
(a) the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or
(b) an increase in an amount for the purposes of paragraph (2)(b).
(6) A legislative instrument under subsection (5) commences at the later of the following days or times:
(a) the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;
(b) the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.
16 Subsections 7(1) and (2)
Repeal the subsections, substitute:
(1) To the extent that the Fund is prepared to accept from Australia promissory notes or other securities issued by Australia in place of any of the following, the Treasurer may make and issue those securities:
(a) any payment that Australia is required to make to the Fund;
(b) any Australian currency held by the Fund.
(1A) To the extent that the Bank or another body is prepared to accept from Australia promissory notes or other securities issued by Australia in place of any of the following, the Treasurer may make and issue those securities:
(a) any payment to the Bank or other body that Australia is required to make in accordance with a relevant financial obligation in relation to the Bank;
(b) any Australian currency held by the Bank.
(2) A security issued under subsection (1) or (1A) is to be:
(a) non‑negotiable; and
(b) non‑interest bearing; and
(c) payable to the Fund, Bank or other body, as the case may be, at its par value on demand.
17 Section 8A
Repeal the section, substitute:
8A Appropriation for purposes of Special Drawing Rights Department
(1) The Consolidated Revenue Fund is appropriated for the purposes of making any payments required to be made by Australia to the Fund due to its obligations as a participant in the Special Drawing Rights Department.
(2) Subsection (1) does not apply to a payment to be made by Australia for the purposes of buying special drawing rights (see section 5A).
18 Subsections 8B(1) and (2)
Repeal the subsections, substitute:
(1) The Consolidated Revenue Fund is appropriated for the purposes of making any payments required to be made by Australia under the New Arrangements to Borrow.
19 Section 9
Repeal the section, substitute:
9 Appropriation for relevant financial obligations in relation to the Bank
The Consolidated Revenue Fund is appropriated for the purposes of making any payments necessary to meet relevant financial obligations in relation to the Bank.
20 Section 10
Before “As soon as practicable”, insert “(1)”.
21 At the end of section 10
Add:
(2) Without limiting the generality of subsection (1), the report must include:
(a) a statement of the relevant financial obligations in relation to the Bank notified in that financial year under subsection 3A(5); and
(b) a statement describing the nature and extent of Australia’s participation as a member of each of the following during that year:
(i) the Bank;
(ii) the International Development Association (referred to in the International Development Association Act 1960);
(iii) the International Finance Corporation (referred to in the International Finance Corporation Act 1955); and
(c) an assessment of the managerial efficiency, and financial and economic effectiveness, of the Bank in carrying out its purposes as provided for in the Bank Agreement; and
(d) an assessment of the managerial efficiency, and financial and economic effectiveness, of the International Development Association (referred to in the International Development Association Act 1960) in carrying out its purposes as provided for in the Agreement (as defined in that Act); and
(e) an assessment of the managerial efficiency, and financial and economic effectiveness, of the International Finance Corporation (referred to in the International Finance Corporation Act 1955) in carrying out its purpose as provided for in the Agreement (as defined in that Act).
22 After section 10
Insert:
10A Delegation by the Treasurer
(1) The Treasurer may, in writing, delegate to the Secretary of the Department, or an SES employee or acting SES employee in the Department, all or any of the Treasurer’s functions or powers under the following provisions:
(a) section 5A (transfers to and from the Reserve Bank of special drawing rights);
(b) subsection 7(1A) (issuing securities to the Bank or another body).
Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.
(2) A person performing a function or exercising powers under a delegation under subsection (1) must comply with any written directions of the Treasurer under subsection (3).
(3) The Treasurer may, in writing, give directions for the purposes of subsection (2).
International Monetary Agreements Act 1960
23 Section 4
Repeal the section, substitute:
4 Appropriation
The Consolidated Revenue Fund is appropriated for the purposes of any payment required to be made by Australia to the International Monetary Fund by reason of the change in the quota of Australia in the Fund referred to in paragraph 3(a).
Note: For payments required to be made by Australia in relation to the International Bank for Reconstruction and Development, see section 9 of the International Monetary Agreements Act 1947.
Multilateral Investment Guarantee Agency Act 1997
24 Section 3 (definition of Convention)
Repeal the definition, substitute:
Convention means the Convention Establishing the Multilateral Investment Guarantee Agency, done at Seoul on 11 October 1985, as in force for Australia from time to time.
Note: The Convention is in Australian Treaty Series 1998 No. 24 ([1998 ATS 24]) and could in 2026 be viewed:
relevant financial obligation has the meaning given by section 3A.
26 After section 3
Insert:
3A Meaning of relevant financial obligation
(1) For the purposes of this Act, a relevant financial obligation is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:
(a) the obligation requires (or could require) Australia to make one or more payments;
(b) the obligation is undertaken or imposed under:
(i) the Convention; or
(ii) an agreement or arrangement between Australia and the Agency (other than an agreement mentioned in section 8CA of the International Monetary Agreements Act 1947); or
(iii) a resolution adopted by the Council of Governors of the Agency;
(c) for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii),the agreement, arrangement or resolution relates to Australia:
(i) purchasing or subscribing to shares of the capital stock of the Agency; or
(ii) purchasing a bond, debenture, convertible note or similar financial instrument issued by the Agency; or
(iii) granting a guarantee in support of the objective and purposes of the Agency; or
(iv) providing any other form of financial accommodation in support of the objective and purposes of the Agency;
(d) the obligation is not excluded by a determination under subsection (4).
(2) However, for the purposes of this Act:
(a) an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation only if notice of the obligation has been given under subsection (5); and
(b) an increase in an amount of a relevant financial obligation because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).
(3) To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.
Note: For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).
Treasurer may exclude obligations
(4) The Treasurer may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).
Notification of new financial obligations
(5) The Treasurer may, by legislative instrument, give notice of:
(a) the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or
(b) an increase in an amount for the purposes of paragraph (2)(b).
(6) A legislative instrument under subsection (5) commences at the later of the following days or times:
(a) the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;
(b) the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.
27 Sections 4 and 5
Repeal the sections, substitute:
4 Appropriation
The Consolidated Revenue Fund is appropriated for the purposes of:
(a) making any payments necessary to meet relevant financial obligations; and
(b) making any payments necessary to redeem securities issued under section 5.
5 Issue of securities
(1) To the extent that the Agency or another body is prepared to accept promissory notes or other securities issued by Australia in place of any payment that Australia is required to make to the Agency or other body in accordance with a relevant financial obligation, the Treasurer may make and issue those securities.
(2) A security issued under subsection (1) is to be:
(a) non‑negotiable; and
(b) non‑interest bearing; and
(c) payable to the Agency or other body.
6 Delegation by the Treasurer
(1) The Treasurer may, in writing, delegate all or any of the Treasurer’s powers under section 5 to:
(a) the Secretary of the Department; or
(b) an SES employee, or an acting SES employee, in the Department.
Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.
(2) A person exercising powers under a delegation under subsection (1) must comply with any written directions of the Treasurer under subsection (3).
(3) The Treasurer may, in writing, give directions for the purposes of subsection (2).
28 Schedules 1 and 2
Repeal the Schedules.
Part 2,Repeals
Division 1,Repeal of Acts
29 Repeal of Acts
Repeal the following Acts:
Asian Development Bank (Additional Subscription) Act 1972
Asian Development Bank (Additional Subscription) Act 1977
Asian Development Bank (Additional Subscription) Act 1983
Asian Development Bank (Additional Subscription) Act 1995
Asian Development Bank (Additional Subscription) Act 2009
International Bank for Reconstruction and Development (General Capital Increase) Act 1989
International Financial Institutions (Share Increase) Act 1982
International Financial Institutions (Share Increase) Act 1986
International Monetary Agreements Act 1974
Division 2,Repeal of the European Bank for Reconstruction and Development Regulation 2012
European Bank for Reconstruction and Development Regulation 2012
30 The whole of the instrument
Repeal the instrument.
Part 3,Transitional provisions
31 Definitions
In this Part:
commencement means the commencement of this Schedule.
32 Repeal of Acts,continuation of agreements made in relation to the Asian Development Bank
(1) The repeal of the Asian Development Bank (Additional Subscription) Act 1972 by Part 2 of this Schedule does not affect the continuity of an agreement made under subsection 4(1) of that Act and in effect immediately before commencement.
(2) The repeal of the Asian Development Bank (Additional Subscription) Act 1977 by Part 2 of this Schedule does not affect the continuity of an agreement made under subsection 4(1) of that Act and in effect immediately before commencement.
(3) The repeal of the Asian Development Bank (Additional Subscription) Act 1983 by Part 2 of this Schedule does not affect the continuity of an agreement made under subsection 4(1) of that Act and in effect immediately before commencement.
(4) The repeal of the Asian Development Bank (Additional Subscription) Act 1995 by Part 2 of this Schedule does not affect the continuity of an agreement made under subsection 4(1) of that Act and in effect immediately before commencement.
(5) The repeal of the Asian Development Bank (Additional Subscription) Act 2009 by Part 2 of this Schedule does not affect the continuity of an agreement made under subsection 4(1) of that Act and in effect immediately before commencement.
33 Repeal of Acts,continuation of securities issued to the Asian Development Bank
(1) A promissory note or other security mentioned in subitem (2) continues in effect on and after commencement as if it had been issued under subsection 5(1) of the Asian Development Bank Act 1966, as amended by Part 1 of this Schedule.
(2) This subitem covers a promissory note issued under any of the following that is in effect immediately before commencement:
(a) subsection 6(1) of the Asian Development Bank (Additional Subscription) Act 1972;
(b) subsection 6(1) of the Asian Development Bank (Additional Subscription) Act 1977;
(c) subsection 5(1) of the Asian Development Bank (Additional Subscription) Act 1983;
(d) subsection 5(1) of the Asian Development Bank (Additional Subscription) Act 1995;
(e) subsection 5(1) of the Asian Development Bank (Additional Subscription) Act 2009.
34 Repeal of Acts,continuation of agreements made in relation to the International Bank for Reconstruction and Development and the International Finance Corporation
(1) The repeal of the International Bank for Reconstruction and Development (General Capital Increase) Act 1989 by Part 2 of this Schedule does not affect the continuity of an agreement made under section 4 of that Act and in effect immediately before commencement.
(2) The repeal of the International Financial Institutions (Share Increase) Act 1982 by Part 2 of this Schedule does not affect the continuity of an agreement made under section 4 or 5 of that Act and in effect immediately before commencement.
(3) The repeal of the International Financial Institutions (Share Increase) Act 1986 by Part 2 of this Schedule does not affect the continuity of an agreement made under section 4 or 5 of that Act and in effect immediately before commencement.
(4) The repeal of the International Monetary Agreements Act 1974 by Part 2 of this Schedule does not affect the continuity of an agreement made under subsection 4(1) of that Act and in effect immediately before commencement.
35 Repeal of Acts,continuation of securities issued in relation to the International Bank for Reconstruction and Development
(1) A promissory note or other security mentioned in subitem (2) continues in effect on and after commencement as if it had been issued under subsection 7(1A) of the International Monetary Agreements Act 1947, as amended by Part 1 of this Schedule.
(2) This subitem covers any of the following that is in effect immediately before commencement:
(a) a security issued for the purposes of section 5 of the International Bank for Reconstruction and Development (General Capital Increase) Act 1989;
(b) a security issued for the purposes of section 7 of the International Financial Institutions (Share Increase) Act 1982;
(c) a security issued for the purposes of section 7 of the International Financial Institutions (Share Increase) Act 1986;
(d) a security issued to the International Bank for Reconstruction and Development (referred to in the International Monetary Agreements Act 1960) for the purposes of section 5 of that Act;
(e) a promissory note issued under subsection 5(1) of the International Monetary Agreements Act 1974.
36 Continuation of other agreements made
The repeal of section 5B of the International Finance Corporation Act 1955 by Part 1 of this Schedule does not affect the continuity of an agreement made under that section and in effect immediately before commencement.
37 Continuation of other securities issued
(1) A security issued under subsection 5(1) of the Asian Development Bank Act 1966 and in effect immediately before commencement continues in effect on and after commencement as if it had been issued under that subsection as amended by Part 1 of this Schedule.
(2) A promissory note issued under subsection 6(1) of the Asian Infrastructure Investment Bank Act 2015 and in effect immediately before commencement continues in effect on and after commencement as if it had been issued under subsection 5(1) of that Act, as amended by Part 1 of this Schedule.
(3) A security issued under subsection 5(1) of the European Bank for Reconstruction and Development Act 1990 and in effect immediately before commencement continues in effect on and after commencement as if it had been issued under that subsection as amended by Part 1 of this Schedule.
(4) A security issued to the Fund (as defined in the International Monetary Agreements Act 1947) under subsection 7(1) of that Act and in effect immediately before commencement, including a security issued for the purposes of section 5 of the International Monetary Agreements Act 1960, continues in effect on and after commencement as if it had been issued under subsection 7(1) of the International Monetary Agreements Act 1947, as amended by Part 1 of this Schedule.
(5) A security (not covered by subitem 35(2)) issued to the Bank (as defined in the International Monetary Agreements Act 1947) under subsection 7(1) of that Act and in effect immediately before commencement continues in effect on and after commencement as if it had been issued under subsection 7(1A) of that Act, as amended by Part 1 of this Schedule.
(6) A security issued under subsection 5(1) of the Multilateral Investment Guarantee Agency Act 1997 and in effect immediately before commencement continues in effect on and after commencement as if it had been issued under that subsection as amended by Part 1 of this Schedule.
38 Executive power of the Commonwealth
This Part does not, by implication, limit the executive power of the Commonwealth.