Super Alert – 5 September 2025: new AML/CTF rules registered, draft merger notification waiver form, super splitting, new Bills

Welcome to the weekly KHQ Super Alert. This week various Bills were introduced to Parliament proposing miscellaneous amendments to financial services laws, the payment systems framework, and spouse superannuation splitting. New rules relating to the AML/CTF Act were also registered on the Federal Register of Legislation.

Parliament – Bill introduced in relation to spouse superannuation splitting

On 4 September 2025, the Superannuation Legislation Amendment (Tackling the Gender Super Gap) Bill 2025 (Cth) was introduced to the Senate as a private member’s Bill. According to the Explanatory Memorandum, the Bill proposes to amend the SIS Act, SIS Regulations and ‘the Income Tax Assessment Act 1997 to provide spouses with the opportunity to evenly split their superannuation balances on an ongoing annual basis. It allows a partner with a higher superannuation balance to provide their spouse with a top-up, limited to an amount that brings the balance to less than or equal to the general transfer balance cap’.

These changes are proposed to only apply to accumulation accounts – pension accounts and defined benefits are carved-out.

Click here for details. 

Parliament – Bill in relation to various financial services matters introduced

On 4 September 2025, the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 (Cth) was introduced to the House of Representatives. According to the Explanatory Memorandum, the Bill proposes a variety of amendments to financial services laws, including:

• amending ‘the Financial Regulator Assessment Authority Act 2021 (FRAA Act) to reduce the frequency of the Financial Regulator Assessment Authority’s (FRAA) reviews of the Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA) to every five years’ – note that this measure was previously in the Treasury Laws Amendment (Miscellaneous Measures) Bill 2024 (Cth) which lapsed when the Federal election was called earlier this year; and
• making ‘administrative’ changes to the Corporations Act 2001 (Cth) in relation to:
  • the limited immunity provisions for sustainability reports in Chapter 2M;
  • notice requirements to ASIC about authorised representatives; and
  • the ability of financial advisers to meet the qualifications standard via alternative qualification pathways.

Click here for details. 

Parliament – Amendments to Bill proposing to modernise payments regulatory framework

On 4 September 2025, the Treasury Laws Amendment (Payments System Modernisation) Bill 2025 (Cth) moved to the Senate where some amendments were proposed by the Senate. As referred to in our Super Alert of 8 August 2025, the Bill proposes to amend the Payment Systems (Regulation) Act 1998 (Cth) (PSRA) ‘to modernise the payments regulatory framework, ensuring it is fit-for-purpose and can address emerging risks related to payments’, for example by expanding ‘the regulatory coverage of the PSRA by updating key definitions, introducing new ministerial powers to ensure the Government can respond to issues beyond the existing remit of the RBA, and modernising the existing penalty regime in the PSRA’.

The Senate amendments to the Bill are relatively minor and will now be considered by the House of Representatives.

Click here for details. 

APRA – Speech in relation to latest risk insights

On 4 September 2024, APRA published a speech delivered by its Executive Director of Cross-industry Risk, Chris Gower.

Mr Gower’s comments included the following:

• the trends that APRA is seeing in the industry potentially ‘increase the impacts of cyber-attacks on the financial system’ and due to ‘an increased reliance by banks, insurers and super funds on service providers to deliver essential service… third parties are often used by cyber adversaries as a backdoor to hit their primary target’;
• APRA has received numerous submissions to its recent consultation in relation to strengthening governance and ‘held more than 50 meetings and roundtables involving over 150 stakeholder organisations’;
• APRA’s ‘first system stress test’ is ‘examining risks to financial stability arising from linkages between the banking and superannuation sectors’. The inaugural test scenario was presented to participating entities in April and APRA is ‘currently working through the first phase results on which [it expects] to have initial findings this year, before undertaking a second phase of the exercise’; and
• APRA has ‘committed to working further with industry to identify possible additional options to reduce the data reporting burden…[including] addressing the overlap in reporting obligations that apply under APRA’s prudential framework and the statutory requirements under the Financial Accountability Regime (FAR)’.

Click here for details. 

ASIC – Regulatory simplification project updates

On 3 September 2025, ASIC published a report in relation to its recent ‘regulatory simplification’ work. According to ASIC it ‘has culled more than 9,240 pages of regulation since the beginning of the year’ and the formation of the ASIC Simplification Consultative Group. ASIC has further initiatives in the pipeline including redesigning its website and ‘pilots to consolidate and simplify 23 legislative instruments by at least 65 pages’.

Click here for details.

Treasury – Merger notification waiver form – exposure draft

On 3 September 2025, Treasury released an exposure draft determination which provides for a proposed waiver form which can be submitted to the Australian Competition and Consumer Commission (ACCC) under the new merger regime commencing on 1 January 2026. The regime may have some application to superannuation fund successor fund transfers.

According to the Treasury release, ‘[b]usinesses can apply to the ACCC for a notification waiver. The waiver process is a simple, fast and low-cost process. Businesses do not need to notify the merger if the ACCC gives a waiver’.

The consultation period closes on 16 September 2025.

Click here for details. 

ASIC – Minor updates to RG 78

On 1 September 2025, ASIC advised that it has made ‘minor updates’ to RG 78 Breach reporting by AFS licensees and credit licensees. ASIC has explained that the updates are ‘to reflect ASIC’s relief that took effect on 24 June 2025, and updated question numbering in Appendix 2’.

Click here for details.

Legislation – New AML/CTF rules registered

On 29 August 2025, the Anti-Money Laundering and Counter-Terrorism Financing Rules 2025 (Cth) and Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Consequential Amendments) Instrument 2025 (Cth) were registered on the Federal Register of Legislation. These rules replace some provisions of the Anti‑Money Laundering and Counter‑Terrorism Financing Rules Instrument 2007 (No. 1) (2007 Rules) to ensure alignment with the amendments made to the AML/CTF Act in November 2024.

However, the new instruments do not completely replace the 2007 Rules (although they do rename the 2007 Rules) and therefore both legislative instruments will need to be considered in tandem.

According to the Explanatory Statement, the 2025 rules:

• provide ‘reporting entities with finer detail on fundamental AML/CTF obligations set out in the AML/CTF Act, for example, reporting groups, AML/CTF programs and customer due diligence obligations’
• specify ‘information required to meet specific obligations—particularly for enrolment, registration, suspicious matter reporting, threshold transaction reporting, keep open notices, and the transfer of value’; and
• re-write ‘in simpler terms, existing measures that have not substantively changed such as correspondent banking relationships and AML/CTF compliance reporting requirements’.

Click here and here for details.

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