On 4 September 2025, the Australian Prudential Regulation Authority (APRA) published two letters it sent to Treasurer Hon Dr Jim Chalmers MP and Minister for Finance, Senator the Hon Katy Gallagher on 31 July 2025 and 12 August 2025. The letters outline nine actions APRA is taking to support productivity while maintaining the strength and stability of the financial system in a balanced and efficient way. These actions are further described in APRA’s 2025-26 Corporate Plan.
In summary, the nine actions APRA is taking are:
- introducing further proportionality , including a proposal to formalise a third tier into APRA’s proportionality framework for banks and then focusing on the insurance and superannuation frameworks;
- simplifying the bank licensing framework with a goal of reducing the time taken to process new bank license applications;
- promoting access to internal capital modelling, by consulting on changes that aim to simplify and clarify APRA’s accreditation process that allows banks to use internal modelling for regulatory capital purposes;
- promoting access to cost-effective reinsurance;
- reducing capital requirements for annuities;
- removing unnecessary or duplicative rules as part of APRA’s consultation on governance standards;
- coordinating with peer agencies on payments reform;
- providing greater clarity of supervisory expectations relating to adjustments for banks to minimum capital requirements; and
- strengthening data sharing with other regulators, helping to reduce duplicative requests on entities.