Today we are opening consultation on the next phase of our deregulation agenda to boost productivity and competition in the financial sector.
We are cutting red tape across the financial services industry by $780 million a year which is good for customers and good for the economy.
These reforms will make it easier for mid‑sized banks to compete and streamline reporting requirements for smaller banks to make the sector more efficient and dynamic.
These reforms will:
- increase the cap on banks' covered bond issuance to support access to stable and cost‑effective sources of funding;
- align Financial Accountability Regime (FAR) reporting requirements for smaller banks with prudential regulation thresholds;
- increase the withdrawal limit for deceased persons' estate‑related expenses from $15,000 to $30,000, including funeral expenses, and expressly provide for the payment of court filing fees from an account, and;
- remake sunsetting banking regulations to ensure they remain fit for purpose before they 'sunset' on the 1 April 2027.
The reforms respond to stakeholder feedback and reduce unnecessary compliance costs without compromising financial stability.
The increase to the covered bond cap will support greater access to stable and diversified funding sources for Australian banks. The Council of Financial Regulators' Review into Small and Medium‑sized Banks found that a higher covered bond cap would particularly benefit mid‑sized banks' access to longer‑term and lower‑cost funding.
Changes relating to deceased estates will help reduce administrative and financial burdens for families at a difficult time by making it easier to access funds to pay for funeral expenses, court filing fees and other costs relating to management of the deceased estate.
Amendments to the FAR framework will streamline reporting requirements for smaller banks without affecting regulatory oversight.
Following consultation, the Government intends to implement these reforms from later this year.
We're making it easier to invest and do business through the biggest productivity package in a generation and this is an important part of those reforms.
Consultation materials are available on the Treasury website:
- Consultation on the Banking Regulations 2026
- Consultation on implementing parts of the better regulation measures
