Why did Treasurer Jim Chalmers issue new expectations to regulators?

Treasurer Jim Chalmers issued the guidance because the Australian Federal Government aims to revive national productivity following post-pandemic economic slowdowns.

What is the projected financial impact of reducing regulatory compliance burdens?

The Australian Federal Government forecasts that reducing regulatory compliance costs across the national economy will save businesses $10.2 billion annually.

How does the mandate affect the statutory roles of regulators like APRA and ASIC?

The government confirmed that the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission must balance their new economic growth mandate with their existing statutory obligations to safeguard financial stability, consumer protection, and market integrity.

What specific execution timeline has the government established for these reforms?

The government stated that the updated directions build upon outcomes established during its recent Economic Reform Roundtable and apply immediately to ongoing regulatory operations.

How does this regulatory directive impact the broader Australian financial market?

Following the announcement, major broad-market indices across the Australian Securities Exchange, such as the S&P/ASX 200 (ASX:XJO), remained largely unchanged as investors evaluated the regulatory shifts.

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Chalmers instructs financial regulators to prioritise economic growth

Written by Liezl GambePublished Jul 16, 2026, 12:45 AM

Australian regulators APRA and ASIC must now give greater weight to promoting economic growth.
The strategy aims to cut compliance burdens while maintaining consumer protections and financial stability.
The instruction aligns with ongoing efforts to lift national productivity following post-pandemic slowdowns.

Treasurer Jim Chalmers issued new statements of expectations to the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission requiring them to focus more on economic growth.

This policy change targets Australia's sluggish productivity performance following a period of economic slowdown after the pandemic.

"This is all about enabling our financial regulators to unlock more productivity and more growth in our economy," said Treasurer Jim Chalmers.

The government previously outlined plans to reduce regulatory compliance costs across the economy by $10.2 billion annually.

The update explicitly directs regulators to apply proportionate, risk-based oversight without compromising financial stability or market integrity.

Following the announcement, the broader market indices were largely unchanged as investors evaluated the regulatory shifts.

The direction builds upon outcomes established during the government's recent Economic Reform Roundtable aimed at removing operational bottlenecks.