The Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 establishes a total ban on life insurers using individuals’ genetic test results in underwriting and aligns the Disability Discrimination Act 1992 with that ban. It also amends the Corporations Act to create new licensing exemptions for foreign financial services providers, streamlines Australia’s obligations to multilateral development banks and the IMF, and repeals Stage 2 of the financial adviser registration regime.
Schedule 1 amends the Insurance Contracts Act 1984 and the Disability Discrimination Act 1992 to:
Schedule 2 amends the Corporations Act 2001 to introduce four new licensing exemptions for foreign financial services providers:
Schedule 3 modernises multilateral development bank and IMF appropriation mechanisms by introducing special appropriations and technical amendments to reduce administrative burden. Schedule 4 repeals Stage 2 of the financial adviser registration process under the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Act 2021, maintaining the existing adviser registration model under AFS licencees. Each Schedule includes commencement and transitional provisions and, where relevant, no net financial impact or only minor compliance costs.
The ban on use of genetic test results ensures that individuals are treated equally by life insurers, removing a key barrier that deters people from undergoing clinically valuable genetic testing. By protecting consumers from unfair premium loading or denial of cover, it promotes public health through earlier detection and prevention of genetic conditions [Judgment].
Introducing clear, criminal and civil penalties enforced by ASIC protects the integrity of the insurance market and builds consumer confidence in both the underwriting process and anti-discrimination framework.
The new AFS licence exemptions for foreign financial services providers foster greater competition and choice for Australian investors, lowering costs and increasing access to global markets, which maximises overall welfare by expanding investment opportunities [Judgment].
Modernising Australia’s obligations to multilateral development banks streamlines budget processes, ensuring timely contribution to global development efforts, while repealing Stage 2 financial adviser registration reduces unnecessary red tape without compromising industry discipline.
Underwriting based on risk requires access to all relevant information, including genetic data. A total ban disrupts sound actuarial pricing, risks adverse selection, and could ultimately drive up premiums for everyone, as insurers cannot differentiate between low- and high-risk lives [Judgment].
Broad licensing exemptions for foreign providers may dilute ASIC’s oversight, opening pathways for regulatory arbitrage and potential misconduct in cross-border financial markets. The loss of the “sufficient equivalence” regime’s tailored conditions reduces certainty for both regulators and firms.
Special appropriations for multilateral development banks create an open-ended fiscal commitment without clear parliamentary appropriation processes, exposing taxpayers to unpredictable liabilities.
Finally, eliminating Stage 2 financial adviser registration removes an important layer of individual accountability, weakening consumer protections in the financial advice sector at a time when trust has been hard won.
2025-11-26
House of Representatives
Before House of Representatives
Unspecified
Treasury
Consumer Protection, Discrimination / Human Rights, Financial Regulation