Scott Buchholz (Wright, Liberal Party, Assistant Minister for Road Safety and Freight Transport) Share this | Hansard source

I would like to thank all those members who have made a contribution to this debate on the Australian Prudential Regulation Authority Amendment (APRA Industry Funding) Bill 2020. The bill will ensure that the legislative framework for financial institutions supervisory levies keeps up with the ever-evolving industry. Recent events have highlighted how important the large institutions are in the financial services sector, and it's absolutely critical that regulation reflects their importance in the market.

Through addressing legislative impediments, this package of bills will enable large institutions to be levied their appropriate share of APRA costs. This will ensure no more deferrals of levies on those institutions that create the greatest regulatory burden. In turn, Australia will see a prudential regulatory approach funded in continuing to address financial stability, in protecting the Australian community. It is only appropriate that all sizes of institutions pay their proportionate amount of these costs. Industry have supported these changes, and these amendments will provide certainty for many institutions during this unfortunate coronavirus crisis.

As the financial services sector evolves through technology and innovation, the nature of regulation will need to keep pace. Therefore, regulatory activities in regard to prudential regulatory institutions are required to adapt. The amendments will ensure that the cost of regulatory activities, for which the Commonwealth collects through APRA, can continue to be collected in a dynamic regulatory environment. I commend this bill to the House.

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