Mackay Chapman August 2026 Regulatory Roundup

Welcome to our new regulatory roundup, bringing together key developments across Australia’s regulatory landscape.

From ATO and AUSTRAC updates to white collar crime, prudential regulation and broader compliance and risk issues, we highlight regulatory issues and developments businesses and professionals should have on their radar.

Anti-money laundering laws expand to thousands more businesses

Australia’s expanded anti-money laundering and counter-terrorism financing (AML/CTF) regime came into effect on 1 July 2026, bringing tens of thousands of additional businesses under AUSTRAC regulation.

The reforms extend AML/CTF obligations to a range of professions and industries that have historically sat outside the regime, including real estate agents, lawyers, conveyancers, accountants and dealers in precious metals and stones.

The changes are designed to target areas of the economy that can be exploited to move or conceal criminal proceeds. AUSTRAC says property transactions, professional services and complex trust and company structures can all be used to disguise the source and ownership of illicit funds.

For businesses providing designated services, the changes introduce significant new compliance responsibilities. Businesses captured by the expanded regime are expected to have an AML/CTF program and compliance officer in place, train relevant staff and be ready to meet reporting requirements.  Affected businesses were also required to enrol with AUSTRAC by 29 July. 

AUSTRAC has warned that businesses which provide designated services without meeting their enrolment obligations risk regulatory action.

ATO updates

Operation Flint targets horticulture non-compliance

The ATO has launched Operation Flint in Griffith as part of its Shadow Economy Taskforce, to investigate labour hire providers and target unlawful practices by employers in the food bowl of the Riverina. 

Operation Flint is a joint investigation by the ATO, Fair Work Ombudsman (FWO) and Department of Home Affairs’ Australian Border Force (ABF) seeking to expose failures by employers in the horticulture industry to meet their obligations. It is targeting practices including:

• underpaying wages, penalty rates and other entitlements, including super
• non-compliance with tax and super obligations
• failing to withhold and remit pay as you go withholding (PAYGW) tax
• failing to provide accurate pay slips to workers
• non-lodgment of activity statements and income tax returns
• incorrect reporting of business income and expenses
• breaches of obligations under the Migration Act 1958 including migrant worker exploitation and unlawful provision of immigration assistance.

SMSF auditors under the microscope in 2026–27

SMSF auditor compliance will remain a focus for the ATO in 2026–27. Auditors should ensure they are meeting their professional and reporting obligations, with regulatory scrutiny continuing across the sector.

NSW man charged over alleged GST fraud

A 33-year-old NSW man has been charged over an alleged attempt to obtain more than $1.3 million through fraudulent GST claims. The charges follow a joint investigation by the ATO and Australian Federal Police through the Serious Financial Crime Taskforce.

The former Commonwealth public servant was arrested at a house in Broken Hill.  Police will allege the man came to the attention of the ATO’s Operation Protego – an investigation into large-scale GST fraud – after submitting fictitious business activity statements on behalf of an allegedly fraudulent Australian business. It is alleged he attempted to defraud the Commonwealth of more than $1.3M million in GST refunds between 2020 and 2022.

ATO clears up Payday Super misconception

With Payday Super now in effect, the ATO has addressed a myth about what the changes mean for super funds. 

The ATO has clarified that the reforms involve more than simply receiving contributions more frequently, with funds also facing greater expectations around the speed and accuracy of processing contributions.

APRA updates

Section 66 Banking Act exemption expanded

APRA has updated a class exemption under section 66 of the Banking Act 1959, which restricts financial businesses from using terms such as “bank” unless APRA has provided consent.

The exemption allows foreign entities to use restricted banking terms when issuing debt securities in wholesale capital markets. 

The class exemption has now been expanded to cover a broader range of foreign entities that commonly seek APRA’s consent, reducing the need for individual applications. All other aspects of the exemption remain unchanged.

Level 3 conglomerate standards to continue without new requirements

APRA’s Level 3 prudential standards govern risks within conglomerate groups that contain APRA-regulated institutions, including areas such as aggregate exposures, transactions between related entities and audit requirements. 

Three of these standards are due to expire on 1 October 2026, and APRA has confirmed they will be remade with administrative updates only and no new requirements for affected groups.

APRA responds to Government’s Statement of Expectations

APRA has published a new Statement of Intent in response to the Government’s Statement of Expectations, which sets out the Government’s priorities and expectations for the regulator.

The Statement of Intent outlines how APRA plans to meet those expectations across its responsibilities, policy priorities and regulatory approach, as well as its relationships with external stakeholders and internal organisational matters.

APRA Connect reporting becomes mandatory

APRA is phasing out its Alternate Submission Process for authorised deposit-taking institutions (ADIs) and registered financial corporations (RFCs), with affected reporting moving fully to APRA Connect between 31 July and 30 September 2026.

Affected entities should ensure their reporting processes are ready for the transition.

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The contents of this update do not constitute legal advice, are not intended to be a substitute for legal advice, and should not be relied upon as such. They are designed and intended as general information in summary form, current at publication, for general informational purposes only. You should seek legal or other professional advice concerning any particular legal matters you or your organisation may have.

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