The Coalition will reform Australia’s financial services sector to drive productivity, unlock investment and support aspiration.

 

A Coalition Government will make Australia a global financial hub that is both stable and innovative.

 

Financial services are the arteries of the economy—essential for starting a business, buying a home, and building prosperity. Yet, excessive regulation and compliance costs exceeding $1 billion for some firms have clogged those arteries, driving up costs and limiting access for Australians.

 

Over-regulation has left Australians under-insured, under-advised, and under-banked. The Coalition will remove unnecessary barriers and ensure financial services work for all Australians—not just a privileged few.

 

To achieve this, the Coalition will implement three key reforms:

 

1. Reform Prudential Settings to Unlock Investment

 

The Coalition will reset APRA’s statement of expectations, balancing financial stability with providing internationally competitive access to finance for Australians. This includes:

 

• Increasing banking competition by easing regulatory burdens on regional, mid-tier, and smaller banks.
• Adjusting lending criteria to support home ownership, ensuring serviceability requirements reflect the interest rate cycle.
• Expanding small business lending—no Australian should need to own a home to start a business.
• Preventing overcapitalisation of insurers to lower consumer costs and free up capital for investment.

 

Financial stability will remain paramount and APRA's primary financial stability objective will remain unchanged. But the Coalition's expectation is that regulation must enable opportunity, not stifle economic growth.

 

2. Strengthen Competition Advocacy in Financial Regulation

 

The Coalition will ensure competition and consumer interests are prioritised by making the ACCC a permanent member of the Council of Financial Regulators.

 

This will build on the Coalition’s track record of streamlining financial regulation and ensuring regulation supports, rather than hinders, Australians.

 

3. Simplify Corporate Law and Revive the Corporate Bond Market

 

Australia’s corporations law is overly complex, harming productivity and increasing costs for small businesses and consumers. The Coalition will:

 

• Act on the Australian Law Reform Commission’s 2023 report to progressively simplify corporate laws—starting with Chapter 7 on product and market regulation.
• Revive the corporate bond market, providing retail investors—especially retirees—access to stable fixed-income options.
• Streamline disclosure requirements and introduce more flexible bond terms to unlock $1 trillion in investment opportunities, funding business growth and reducing borrowing costs.

 

These reforms will boost investment, enhance competition, and rebuild Australia’s financial services sector to better serve Australians.

 

They complement the Coalition’s broader agenda, including allowing reasonable access to super for housing, reviving the Consumer Data Right, and rebuilding financial advice through the Quality of Advice Review.

 

Most importantly, they will empower young Australians to start businesses, invest with confidence, and buy a home.

 

ENDS.