The Albanese Government is building a more innovative financial system that will lift productivity while maintaining consumer and business confidence.
Innovation requires more than just the adoption of new technology. It needs the development of new products, services, business models and ways of working that improve outcomes for consumers, businesses and the broader economy.
That will require clear strategic direction and sustained coordination between Government, regulators and industry.
Our new Financial Innovation Strategy, released today, will establish a Financial Innovation Committee to complement existing coordination mechanisms and support a coordinated whole‑of‑government approach to financial innovation.
We are also modernising the Enhanced Regulatory Sandbox framework after the ERS review found the existing model has not delivered the level of use or flexibility industry needs.
The sandbox model allows industry to test innovative products and services with appropriate safeguards, while giving regulators practical insight into new technologies, barriers and future policy needs.
We will replace the existing framework with a more flexible model that strengthens pathways from testing to adoption.
Regulators will consider opportunities to develop targeted sandboxes in priority areas such as AI‑enabled financial services and digital financial market infrastructure.
Australia's financial system is already one of our greatest strengths, and the Albanese Government's Financial Innovation Strategy will set a clear direction for building a more innovative, productive and globally competitive sector while preserving the trust that underpins it.
The Financial Innovation Strategy will be available on the Treasury website.
