August 21, 2025 – The Australian Prudential Regulation Authority (APRA) has announced sweeping reforms aimed at reducing the regulatory burden on banks, superannuation funds, and insurers while strengthening governance standards.
In its 2025–26 corporate plan, APRA committed to a “more proportionate” regulatory approach, moving away from a one-size-fits-all model. A new three-tiered system will tailor supervision to the size of institutions, with separate frameworks for large, medium, and small banks. The plan also proposes streamlined pathways for bank licences, clearer expectations for applicants, and faster turnaround times, with decisions targeted within three months of final submissions.
For superannuation and insurance, APRA is reviewing governance frameworks to ensure boards have the right mix of skills and independence. Draft reforms include stricter fitness and propriety checks, enhanced conflict-of-interest rules, and mandatory board performance reviews. Non-executive directors could face a 10-year tenure limit under the proposal, now open for consultation.
Industry groups have welcomed the direction, saying the reforms will reduce duplication and open the market to greater competition. APRA has also directed ANZ Bank to accelerate improvements in managing non-financial risk, reinforcing that governance accountability remains central to the regulator’s agenda.
Consultation on the licensing changes is open until October 31, with governance reforms expected to be finalised in 2027 and implemented from 2028.
