The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 strengthens corporate transparency by enhancing beneficial ownership disclosure for listed entities, expanding ASIC’s enforcement powers and freezing orders, and tightening penalties for non-compliance. It also implements a range of other Treasury portfolio reforms—from extending instant asset write-offs for small businesses to technical amendments across charity, taxation and energy market laws.
The Bill is structured in seven schedules. Schedule 1 amends Chapters 6 and 6C of the Corporations Act 2001 to:
Schedule 2 amends the Australian Charities and Not-for-profits Commission Act 2012 to add exceptions for public disclosure of certain ACNC investigation material. Schedule 3 reduces the Financial Regulator Assessment Authority’s review frequency of ASIC and APRA from two years to five. Schedules 4 and 5 make minor, machinery and technical amendments across various Treasury Acts to correct drafting errors, update references and reduce red tape. Schedule 6 extends the Prohibiting Energy Market Misconduct provisions in the Competition and Consumer Act 2010 by five years. Schedule 7 extends the $20,000 instant asset write-off for small businesses (turnover < $10 million) until 30 June 2026.
Enhancing transparency of who ultimately owns and controls companies reduces opportunities for money laundering, tax avoidance and other financial crime, thereby promoting overall societal welfare by protecting public revenue and market integrity. Strong disclosure regimes equip regulators, journalists and investors with the information needed to detect and deter illicit activity, which maximises social and economic well-being by preserving trust in Australia’s financial system.
By aligning Australia’s rules with international standards set by the Financial Action Task Force, the Bill fulfils our legal obligations and strengthens cross-border cooperation in combating financial crime. Clear, standardised reporting requirements and increased penalties will deter misconduct [Judgment] and help maintain Australia’s reputation for high regulatory standards, which in turn attracts investment and supports efficient capital allocation.
While transparency is desirable in principle, the complexity of the new derivatives disclosure regime may impose significant one-off and ongoing compliance costs on listed entities, financial intermediaries and their service providers, which could outweigh the incremental benefits of detecting small volumes of undisclosed interests [Judgment]. Complex calculation rules, frequent updates and expanded tracing notices risk diverting resources away from productive activity.
The Bill also expands regulatory intrusion into commercially sensitive arrangements—forcing disclosure of private risk-management strategies under equity derivatives—which can undermine property rights and the freedom of parties to negotiate bespoke contracts. The anticipated gains in enforcement effectiveness are uncertain, given existing anti-money laundering and tax integrity tools already available to regulators. A lighter, targeted approach may achieve similar outcomes at far lower cost.
2025-09-04
House of Representatives
Before House of Representatives
Unspecified
Treasury
Financial Regulation, Anti-Corruption, Taxation