Australia: Finance and Banking

Australia is introducing three new licensing exemptions for foreign financial services providers that will take effect in April 2027. These exemptions—covering professional investors, comparable regulators, and market makers—will allow certain FFSPs to conduct financial services business without obtaining an Australian Financial Services Licence, provided specific conditions are met.

APRA has published a letter to industry calling for a step-change in how banks, insurers and superannuation trustees manage and govern AI-related risks.

The 2026-27 Federal Budget introduced the most significant capital gains tax reforms in 25 years, replacing the 50% CGT discount with cost base indexation and a 30% minimum tax. Combined with new ASIC instruments on stamp duty and portfolio holdings disclosure, investment fund managers face coordinated disclosure, operational and structural challenges requiring substantial work over the next 12 to 18 months.