Financial Services in Focus – Issue 113

On 23 September, Treasury announced it is seeking feedback on ways to improve regulatory visibility of the managed investment scheme sector.

Treasury stated these proposals aim to address key information gaps by collecting better data, helping to identify and respond to risks of consumer harm.

Submissions for the consultation close on 23 October 2026. If you would like to make a submission, you can do so on the Treasury website. 

On 2 September, ASIC reminded businesses relying on ASIC’s sector-wide no-action position for digital asset-related financial products and services that they had until 30 September 2026 to apply for or vary an AFS licence or risk operating in breach of financial services law.

From 1 October, firms that need a licence or variation to their existing authorisation but have not met the conditions of ASIC’s no-action position risk breaching financial services law and could face civil and criminal penalties. This includes potential fines reaching up to 10 per cent of annual turnover.

Whilst the Corporations Amendment (Digital Assets Framework) Act 2026 comes into effect on 9 April 2027, many of the existing authorisations will still be required after the new framework commences.

On 28 September, ASIC announced it has remade six legislative instruments that provide relief around managed investment schemes. The instruments were expiring on 1 October 2026.

The new legislative instruments are:

• ASIC Corporations (Serviced Apartment and Property Rental Schemes) Instrument 2026/192 – provides certain managed investment, licensing, hawking and disclosure relief in relation to strata schemes, managed rights schemes and property rental schemes;

• ASIC Corporations (Charitable Investment Fundraising) Instrument 2026/730 – grants conditional relief to charitable investment fundraisers from the managed investment, disclosure, hawking and debenture provisions of the Corporations Act; 

• ASIC Corporations (School Enrolment Deposits) Instrument 2026/709 – provides relief to schools that require enrolment deposits from the managed investment, licensing, disclosure, hawking, and debenture provisions of the Corporations Act; 

• ASIC Corporations (Horse Schemes) Instrument 2026/723 – gives eligible small horse racing syndicates relief from having to register as managed investment schemes and provides private horse breeding scheme operators relief from the managed investment, licensing, disclosure and hawking provisions of the Corporations Act, and

• ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2026/726 – provides relief to responsible entities to address issues that may arise in implementing the tax system for managed investment trusts for a registered scheme.

ASIC will update related guidance in Regulatory Guide 87 Charitable schemes and school enrolment deposits, Regulatory Guide 91 Horse breeding schemes and horse racing syndicates and Regulatory Guide 140 Strata schemes and management rights schemes in the coming months.

The decision to remake the instruments follows ASIC’s consultation in CS 53 Proposed remake of six legislative instruments relating to managed investment schemes, in which ASIC received 19 submissions, with most feedback focused on the regulatory relief available to horse racing syndicates. Non-confidential submissions, along with a summary of stakeholder feedback and ASIC’s response, are available on ASIC’s website. 

On 25 September, ASIC announced it has issued two replacement legislative instruments covering dollar disclosure requirements and general advice provided in exempt documents.

The new instruments, which replace instruments expiring on 1 October 2026, are:

• ASIC Corporations (Disclosure in Dollars) Instrument 2026/719 –provides exemptions from requirements to disclose in a Product Disclosure Statement, Statement of Advice or periodic statement certain information in Australian dollars, and

• ASIC Corporations (Financial Product Advice – Exempt Documents) Instrument 2026/718 – provides licensing relief to entities that give general advice for financial products in certain exempt documents.

The decision follows ASIC’s consultation in Simple Consultation 51 Proposed remake of relief from dollar disclosure reporting and AFS licensing requirements for general advice in certain exempt documents. Details regarding the submissions and ASIC’s response are available on ASIC’s website.

On 28 September, ASIC announced it has remade three legislative instruments for a further five years, continuing relief that supports the efficient operation of Australia's financial markets.

The instruments simplify compliance, support the Austraclear settlement system, and reduce regulatory burden.

The following legislative instruments, which were due to sunset in October 2026, are:

• ASIC Corporations (Dematerialised Securities: Austraclear) Instrument 2016/841 –allows dematerialised securities to be issued, transferred and settled electronically through the Austraclear system, without the need for paper certificates; 

• ASIC Corporations (Disclosure of Directors' Interests) Instrument 2016/881 –makes it easier for directors of listed entities to comply with their disclosure obligations by aligning certain requirements with market listing rules, including ASX Listing Rules; and 

• ASIC Corporations (Records: Dealings on Foreign Markets) Instrument 2016/889 –simplifies record-keeping requirements for financial services licensees when they trade on overseas financial markets

The decision follows ASIC’s consultation on the three legislative instruments in CS 57 Proposed remake of Corporations Instruments 2016/841, 2016/881, and 2016/889. ASIC found the instruments remain effective and a necessary and useful part of the legislative framework.

On 24 September, ASIC announced it is strengthening safeguards for automated and AI-enabled trading while streamlining regulatory requirements for securities and futures market participants under incoming changes to its ASIC Market Integrity Rules (Securities Markets) 2017 and the ASIC Market Integrity Rules (Futures Markets) 2017 (together, MIRs).

The reforms, which will take effect in 2028, will: 

• bolster important gatekeeper controls requiring participants to test, monitor and govern trading systems and algorithms; align Australia’s rules more closely with the principles of the International Organization of Securities Commissions (IOSCO) and other international standards; 
• modernise trading systems obligations to reflect current trading practices, technology and risks, including algorithmic trading, AI and machine learning; 
• apply trading system requirements consistently to manually entered and automated orders;
• set more consistent standards for securities and futures market participants; 
• clarify the scope of the false or misleading rule, including where AI-enabled or other trading activity has the effect of creating a false or misleading appearance; and
• clarify and streamline the MIRs by removing redundant or overly prescriptive obligations.

The amendments follow extensive industry consultation through Consultation Paper 386. 

Ahead of the new rules commencing, to assist industry with their transition ASIC is also seeking feedback on proposed updates to Regulatory Guide 265 Guidance on ASIC market integrity rules for participants of securities markets (RG 265) and Regulatory Guide 266 Guidance on ASIC market integrity rules for participants of futures markets (RG 266).

The proposed updates will:

• update RG 265 and RG 266 to reflect the amended MIRs;

• incorporate relevant guidance from Regulatory Guide 241 Electronic Trading (RG 241) into RG 265 and RG 266, so that RG 241 can be retired; 

• align guidance between RG 265 and RG 266 where appropriate; and

• simplify and clarify ASIC’s existing guidance.

Further information, including the draft updated guidance, is available on ASIC’s website. 

Submissions to [email protected] are due by 5pm (AEDT) on 5 November 2026.

On 23 September, the RBA released its 2026 Assessment of ASX’s clearing and settlement (CS) facilities, finding that despite progress during the year, ASX continues to fall short of the RBA’s expectations in several important areas. Key points include:

• ASX’s CS facilities were assessed as having ‘observed’ or ‘broadly observed’ many of the Financial Stability Standards, but one or more facilities only ‘partly observed’ requirements concerning governance, comprehensive risk management, credit risk and operational risk;

• during the year, ASX established a Transformation Portfolio aimed at addressing longstanding shortcomings in governance, capability, culture and risk management. The RBA considers that, if effectively delivered, the program provides a pathway for ASX to meet the standards expected of an operator of critical market infrastructure; and 

• following the December 2024 CHESS batch settlement incident, ASX strengthened CHESS resourcing and contingency arrangements. The RBA consequently upgraded ASX Clear and ASX Settlement from ‘not observed’ to ‘partly observed’ against the Operational Risk Standard, however, the RBA emphasised that these upgrades reflect specific improvements to CHESS and do not indicate broader improvement in ASX’s management of operational risk.

The RBA’s key message is that ASX must now demonstrate it can successfully deliver its transformation program while maintaining the safe and reliable operation of its critical market infrastructure. 

On 21 September, ASIC announced it has published updated regulatory guidance to assist financial market infrastructure operators to comply with the enhanced regulatory framework in line with the Government’s financial market infrastructure (FMI) reforms.

The updates apply to:

• Regulatory Guide 172 Financial markets: Domestic and overseas operators

• Regulatory Guide 249 Derivative trade repositories, and

• Regulatory Guide 268 Licensing regime for financial benchmark administrators. 

These regulatory guide updates respond to reforms introduced by the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024, which commenced in September 2024 (24-208MR).

ASIC consulted on the proposed updates through CS 50 Proposed updates to RG 172, RG 249 and RG 268. 

Regulated entities are encouraged to review the updated guidance and consider any impacts for their business and operations.

ASIC notes that Regulatory Guide 211 Clearing and settlement facilities: Australian and overseas operators will be reviewed and updated separately in due course.

On 18 September, ASX released its response to feedback received on the consultation on the exposure draft Listing Rules and Guidance Notes amendments concerning shareholder approval of dilutive acquisitions and changes in admission status, published on Wednesday 17 June 2026.

The June 2026 consultation paper focused on four main areas:

• the operation and interactions of the draft amendments with other ASX Listing Rules or Guidance Notes ensure the amended framework operates clearly, consistently and as intended;

• the key definitions and concepts in the draft amendments are clear, objective and administrable;

• whether post-approval issuance periods following shareholder approvals for issuing securities should be standardised to a 12-month period; and

• a commencement date of the amended Listing Rules and Guidance Notes of Wednesday 21 October 2026, and transitional provisions that may support this date.

The response paper summarises the feedback received and sets out ASX’s proposed way forward on the four areas, including the final amendments to the Listing Rules and Guidance Notes that are now subject to completion of the statutory process for amending rules. Following this, the amended Listing Rules and Guidance Notes will come into effect on Wednesday 21 October 2026. 

ASX will release a Market Notice to confirm the completion of the statutory process. 

On 16 September, ASIC announced a three-year extension of its Consultation Agreement with the Financial Markets Standards Board (FMSB) to 25 September 2029.

Since its inception, the agreement has supported ASIC and the FMSB in pursuing their shared interest in maintaining, and where appropriate improving, best practice industry standards and operational practices among market intermediaries in Australia. The relationship has strengthened further over time, with ASIC also recognising the increased Australian connection with the FMSB Board of Directors.

This extension of the agreement reinforces ASIC’s active interest in the development of global industry standards. It will also further facilitate FMSB’s consultation with ASIC in shaping draft standards, guidance materials and other publications and provide ASIC with periodic updates on FMSB’s strategy.

On 15 September, ASIC announced it will continue four forms of relief due to sunset or expire in September or October 2026 that support the efficient operation of Australia’s exchange-traded derivatives and securities markets. ASIC has remade three legislative instruments and extended a fourth for five years.

The relief simplifies disclosure, supports trans-Tasman securities settlement and foreign securities transfers, facilitates securities lending, and reduces unnecessary work for market participants. Whilst minor changes have been made, the relief itself has not changed.

The following instruments will continue for five years:

• ASIC Corporations (Exchange-Traded Derivatives: Multiple Issuers) Instrument 2026/682 – which changes the Product Disclosure Statement requirements in Part 7.9 of the Corporations Act for certain exchange-traded derivatives; 

• ASIC Corporations (Securities: NZCDC Legal Title Transfer System) Instrument 2026/683 – which provides targeted exemptions and changes to Part 7.11 of the Corporations Act;

• ASIC Corporations (Transfers of Division 3 Securities) Instrument 2026/684 – which applies Division 3 of Part 7.11 of the Corporations Act, and regulations made for section 1073D, to shares or debentures of a foreign company quoted on a declared financial market; and 

• ASIC Corporations (Securities Lending Arrangements) Instrument 2021/821 (extended by ASIC Corporations (Amendment) Instrument 2026/685) – which gives people involved in securities lending relief from the substantial holding requirements in Chapter 6C of the Corporations Act.

ASIC’s decision follows consultation through CS 56 Proposed remake of exchange-traded derivative and securities-related instruments. 

On 11 September, FIRB announced that Treasury will no longer accept credit or debit card payments for foreign investment fee payments from 19 September 2026.

Investors and agents should use an alternative payment method, such as BPAY, direct deposit or international bank transfer, to pay foreign investment fees.

Payment instructions and account details are included in the payment details communication issued for each submission through the Foreign Investment Portal.

On 26 August, AUSTRAC warned the public to remain vigilant after discovering cases where scammers impersonated the agency and its staff in an attempt to steal money and sensitive information. Scammers are using emails, phone calls and messages that appear legitimate to pressure victims into making urgent payments or disclosing personal details. 

AUSTRAC does not contact members of the public unexpectedly demanding payment. AUSTRAC-regulated businesses may receive valid invoices from AUSTRAC but any unexpected request for money, personal information or urgent action claiming to be from AUSTRAC should be treated with caution and verified through official AUSTRAC channels before any payment is made. 

AUSTRAC advises that if people receive a suspicious message claiming to be from AUSTRAC, they should contact them using the contact details on their website. 

On 28 August, APRA released a methodology paper explaining the framework underpinning its production of the Comprehensive Product Performance Package (CPPP), which provides comparable information on investment returns, fees and costs across MySuper products and selected Choice superannuation products. 

The CPPP is designed to improve transparency, support better member outcomes, hold trustees accountable for performance, and assist stakeholders in identifying products delivering comparatively poor outcomes.

On 28 August, APRA released the results of the 2026 superannuation performance test, which assesses the long-term performance of superannuation products to improve member outcomes and enhance transparency.

This year 547 superannuation products were assessed. Of these, 12 products did not pass the test:

• one MySuper product offered by BUSS (Queensland) Pty Ltd. This is the first time a MySuper product has failed the test since 2023; and

• 11 platform trustee-directed products. These include five products that have failed the test for at least two consecutive years.

APRA notes the Government is considering options to strengthen the performance test to promote productivity and protect member interests.

On 31 August, ASIC warned that the use of cash settlements might result in unfair outcomes for consumers who need to make a home building insurance claim.

Specific risks to consumers include inadequate cash settlements that do not cover the true cost of the repairs, the stress of finding reliable tradespeople and supervising repairs, and not receiving lifetime repair guarantees.

ASIC made the following better practice recommendations for home insurers: 

• insurers should work with consumers where there is excluded damage; 

• cash settlements should cover the cost of repairs; 

• insurers should provide detail about cash settlement components; 

• insurers should do more to identify and support vulnerable consumers; and 

• insurers should collect data on cash settlements.

On 27 August, APRA released its suite of quarterly industry aggregate insurance publications for the June 2026 quarter. These include quarterly general insurance performance statistics, life insurance performance statistics, private health insurance performance statistics, and private health insurance statistics. 

On 17 September, APRA released the Quarterly Authorised Deposit-taking Institution Performance and the Quarterly ADI Property Exposures publications for the quarter ending 30 June 2026. 

On 29 September, ASIC announced it has remade relief for eligible wholly-owned companies, ensuring they can continue to rely on existing financial reporting arrangements beyond 1 October 2026.

ASIC Corporations (Wholly-owned Companies) Instrument 2026/533 continues existing financial reporting relief for eligible wholly-owned companies under Chapter 2M of the Corporations Act.

This relief streamlines financial reporting by reducing duplicative reporting requirements and applies where the company meets the relevant conditions (including being party to a deed of cross guarantee with its holding company and other group entities, and where the holding company lodges consolidated financial statements for the group).

Companies do not need to take any action solely because the instrument has been remade: the eligibility conditions remain consistent, and savings provisions apply.

The decision to remake the relief follows ASIC’s consultation on the proposed remake through CS 61 Proposed remake of ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 under which four submissions were received, all supporting the proposal. ASIC’s response and non-confidential submissions are available on the consultation page.

On 28 September, APRA announced it has updated RPG 701.0 ABS/RBA Reporting Concepts for the Economic and Financial Statistics Collection (RPG 701.0) to improve accessibility and consolidate all economic and financial statistics guidance into a single resource.

The updated document incorporates all economic and financial statistics frequently asked questions previously published separately on APRA's website. The Practice Guide has also been updated to include new guidance on the treatment of set-off accounts in section 1.20. 

The revised RPG 701.0 is available for both authorised deposit-taking institutions and registered financial corporations on the APRA website.

On 28 September, ASIC announced it has approved an updated auditing competency standard for registered company auditors, placing greater emphasis on ethical behaviour.

The updated standard was jointly issued by CPA Australia, Chartered Accountants Australia and New Zealand, and the Institute of Public Accountants.

It strengthens the recognition of ethical behaviour as a fundamental component of professional competence.

The standard takes effect from 1 October 2026 under the ASIC Corporations (Approval of Auditing Competency Standard) Instrument 2026/733.

On 25 September, AFCA confirmed its FY2026-2027 Approach consultation schedule following public consultation, announcing it will consult on two Approach documents: an updated approach to awarding interest on insurance claims and a new approach to credit reporting. AFCA noted these documents are intended to help financial firms and consumers understand the key issues considered in complaints and support more timely and transparent outcomes. 

The final schedule, alongside a Consultation Feedback Report and all non-confidential submissions, can be viewed on AFCA’s consultation page.

On 22 September, APRA published an article outlining its progress with its ‘Getting the balance right’ agenda, which seeks to reduce unnecessary regulatory burden and support productivity and competition while maintaining strong prudential standards and financial stability. Key points include:

• APRA has sought to simplify regulatory requirements, reduce duplication and apply regulation more proportionately to risk, rather than lowering prudential standards; 

• eight of the nine initiatives announced in its 2025–26 Corporate Plan are expected to be finalised by the end of 2026, including a new proportionality tier and simpler licensing regime for banks, reduced capital requirements for annuity products, greater access to cost-effective reinsurance and reduced data-reporting requirements;

• further measures include targeted reforms to bank capital requirements, which could free up lending capacity for business investment, and harmonisation of Australian and New Zealand bank capital rules, which APRA estimates could save banks operating across both jurisdictions around $175 million annually;

• APRA is working with ASIC and other regulators to improve data sharing and avoid duplicative information requests, having increased the amount of data shared with external stakeholders by 30 per cent over the past 12 months; 

• APRA is placing greater emphasis on proportionality, with simpler or fewer requirements applying to smaller entities while larger and more complex institutions remain subject to greater scrutiny; and

• looking ahead, APRA intends to free up capital, simplify prudential requirements and remove duplicative reporting, with the aim that these simplification measures broadly offset the regulatory burden created by new requirements. 

Overall, APRA is seeking to make prudential regulation more targeted, proportionate and efficient, while preserving the safety and resilience of Australia’s financial system.

On 18 September, ASIC announced it has made two new instruments that consolidate reporting and auditing relief.

ASIC Corporations (Annual and Half-year Reporting) Instrument 2026/468 and ASIC Corporations (Auditing) Instrument 2026/469 bring together 17 existing relief instruments covering financial and sustainability reporting and auditing requirements.

The instruments originate from ASIC’s regulatory simplification initiative. ASIC will also update relevant forms and regulatory guidance to reflect the new instruments.

ASIC consulted on the draft consolidated instruments in CS 54 Proposed consolidation of financial reporting and auditing instruments. For a summary of the feedback ASIC received, see Consultation feedback and ASIC’s response.

On 11 September, ASIC announced  it has released Consultation Paper 391 seeking feedback on what information on the companies register should be made available in the future, and who should have access.

ASIC stated it is seeking feedback to understand the needs of registry users and ensure the future access to registry information balances transparency of important business information with impacts relating to privacy and safety, particularly given the increase in cybercrime and impersonation scams.

ASIC is proposing to make more information available for free, including officeholders' names and status (current or ceased), director ID numbers and whether a director has confirmed their director ID.

The proposed settings would keep core company information broadly available while restricting sensitive personal information to verified users who have a clear need for it.

The proposal sets out access settings for types of company information across four main categories of users - general access, company access, business access, and government access.

From 1 July 2027, officeholders’ year of birth, residential locality and service address would be available to all registry users. Residential address and birth information would be restricted to certain business users.

ASIC expects the new access settings to be fully implemented from 1 August 2028, following a transition period during which companies can update officeholders’ service addresses so that their residential addresses remain restricted.

Consultation closed on 12 October 2026.

On 7 September, Treasury announced the government has responded to the independent review of the Enhanced Regulatory Sandbox (ERS).

The ERS was introduced in 2020 and allows individuals or businesses to test innovative financial services or credit activities without obtaining an AFS licence or Australian credit licence. ASIC administers the ERS. 

The review of the ERS made 6 recommendations, which the government has agreed in principle to in its response. 

In line with recommendation 1.1, on 3 September Treasury released a copy of the government’s financial innovation strategy. 

The strategy sets out a shared vision for financial innovation and connects existing initiatives to make the financial system more competitive and innovative.

On 2 September, Treasury announced the government has handed down its formal response to the Senate Economics References Committee’s report on ASIC investigation and enforcement.

The report was delivered on 3 July 2024 and made 11 recommendations.

On 2 September, APRA and ASIC commenced consultation on proposed changes to streamline aspects of the Financial Accountability Regime (FAR). 

The proposals include removing key functions requirements from the FAR regulator rules and no longer requiring information on accountable persons’ direct reports in accountability maps. These changes are intended to reduce regulatory burden for entities, while ensuring regulators have the information they require to oversee the regime. APRA and ASIC estimate the changes will reduce reporting for all accountable entities and approximately 4500 accountable people and halve the number of updates to accountability maps.

Subject to consultation feedback, the regulators intend to finalise the changes by the end of 2026, with effect from early 2027.

The consultation period closed on 2 October 2026. 

On 31 August, AFCA invited feedback from stakeholders on proposed changes to its Rules that will enable it to consider scam-related complaints under the Scams Prevention Framework. 

The consultation period closed on 28 September 2026. 

On 27 August, APRA and ASIC jointly emphasised the urgent need for financial market participants to move beyond simply understanding the risks posed by frontier AI and take concrete steps to strengthen their resilience. The regulators warned that frontier AI is increasing the speed, scale and sophistication of cyber threats, while also accelerating broader technology and operational risks across the financial system. 

Following nine industry roundtables held in June and July 2026 involving more than 600 participants, APRA and ASIC highlighted several key areas of focus for regulated entities: 

• ensuring strong cyber security fundamentals, including effective management of critical assets, timely patching, robust access controls, backup integrity, tested incident response arrangements and third-party risk management;

• establishing clear board-level decisions on matters such as risk appetite, escalation authority, recovery priorities and crisis communications before an incident occurs; 

• exploring the use of defensive AI tools to assist with threat intelligence, vulnerability detection, code review and incident response, while recognising that industry capabilities remain relatively immature;

• addressing concentration and dependency risks arising from common third-party service providers, which can amplify isolated incidents into system-wide disruptions; and

• supporting greater industry collaboration through threat intelligence sharing, dependency mapping, supplier assurance and coordinated incident responses. 

The regulators stressed that boards and senior executives should ensure their organisations have well-tested response plans and a clear understanding of their vulnerabilities. APRA also noted the importance of industry-wide cooperation and information sharing as a means of strengthening resilience across Australia's interconnected financial system.

APRA and ASIC have listed various resources that entities may consider when assessing and strengthening their frontier AI preparedness.

On 21 September, Treasury announced it is seeking feedback on the proposed way to allocate the 2026–27 Compensation Scheme of Last Resort (CSLR) special levy.

The CSLR operator published the revised estimate for the 2026–27 levy period. The estimate for the personal financial advice sub-sector is higher than the $20 million levy cap. This leads to a projected shortfall of $170.3 million.

The Assistant Treasurer and Minister for Financial Services announced the waterfall framework would apply to the 2026–27 CSLR special levy. He asked Treasury to consult on proposed allocations.

The consultation closed on 6 October 2026. 

On 11 September, Treasury announced it is seeking feedback on draft legislation for the Innovative Business CGT Concession (IBCC).

The IBCC will provide a 50 per cent discount on capital gains from early-stage investments in innovative start-ups.

Treasury is seeking feedback on the exposure draft legislation and explanatory memorandum to implement the IBCC, including on the administrative and transitional arrangements for existing start-ups.

Treasury is also seeking feedback on a draft legislative instrument that will help companies incorporated before 1 July 2027 self-assess whether they meet the innovation requirement for the IBCC.

Treasury will consult separately on a similar legislative instrument for start-ups incorporating on or after 1 July 2027.

The consultation closed on 28 September 2026.

On 11 September, Treasury announced it is seeking feedback on whether exposure draft law and explanatory memorandum give effect to the intentions in the 2026-27 Budget announcement that the government would expand the tax incentives for venture capital schemes to help unlock patient capital for newly launched and expanding firms.

The consultation closed on 28 September 2026.

On 3 September, Treasury announced it is seeking feedback on draft legislation to implement a 30 per cent minimum tax on certain discretionary trusts, applicable from 1 July 2028. 

Treasury has requested feedback on the following:

• how the minimum tax will work; 

• excluded types of trusts and income;

• the definition of fixed trust; 

• how income tax-exempt entities will be treated; 

• roll-over relief; 

• a new electable regime for exclusion from the minimum tax; and 

• treatment of excess franking credits.

The consultation closed on 18 September 2026.

The ATO has warned that cyber criminals are targeting the systems of a small number of tax professionals through malicious emails, links and attachments designed to install malware and gain access to tax agent systems and client information. 

The ATO confirmed its own systems remain secure and have not been compromised but has implemented additional security measures for affected agents and their clients. 

The ATO encouraged tax professionals to strengthen their cyber security practices by:

• installing and maintaining up-to-date anti-virus software;

• exercising caution when opening links, attachments or downloaded files;

• independently verifying suspicious communications;

• using multi-factor authentication; and

• keeping devices, applications and software updated. 

The ATO also urged agents who suspect their systems have been compromised to report the incident promptly, noting early engagement can reduce harm and assist with protecting client information and resolving breaches. Agents were reminded to consider their obligations under the Privacy Act 1988 and the Notifiable Data Breaches Scheme.

More broadly, the ATO emphasised the importance of protecting taxpayer information, noting identity theft can arise from phishing attacks, data breaches and device compromises. It highlighted recent initiatives to strengthen account security, including encouraging greater use of myID and introducing new ATO app features that provide real-time alerts and account-locking capabilities to help prevent fraud.