Mackay Chapman July 2025 APRA Update

In this month’s APRA update:

• APRA publishes new data on retirement product performance
• 2025 Stakeholder Survey highlights strong support for APRA’s supervision
• Targeted changes finalised for treatment of HELP debts in home loan assessments
• Consultation open on updates to Banking Act section 66 instruments
• Proposed changes to capital rules for annuities aim to boost competitiveness
• APRA reinforces authentication controls in superannuation sector

Keep reading for more information and key details.

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APRA publishes new data on retirement product performance

APRA has released detailed data on superannuation retirement products for the first time, enhancing transparency around the investment returns, fees, costs, and strategies that shape Australians’ retirement incomes.

This inaugural dataset covers 600 multi-sector investment options where trustees directly manage investment strategies, providing a breakdown of fee structures, asset allocations, and investment approaches at a product level.

Deputy Chair Margaret Cole emphasised the growing importance of this data: “As more Australians approach retirement, access to detailed product information is vital to drive competition, innovation, and ultimately better outcomes for members.”

The data is now available at APRA’s website under Quarterly Superannuation Product Statistics.

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2025 Stakeholder Survey highlights strong support for APRA’s supervision

The latest stakeholder survey reveals that 97% of banks, insurers, and superannuation trustees believe APRA’s supervision benefits their industries. 

With a 70% response rate from 262 regulated entities, the biennial survey offers key insights into how APRA’s regulation is viewed across the financial sector.

Key findings include:

• 93% say APRA’s supervision strengthens their organisation’s financial and operational resilience
• 96% report improved risk management practices due to APRA’s oversight
• 82% confirm a positive impact on financial management
• 74% feel adequately consulted on proposed prudential changes

While 68% believe APRA balances safety with competition and efficiency, only 24% feel regulatory cost impacts are sufficiently considered.

Chair John Lonsdale noted the survey helps refine APRA’s approach amid ongoing economic uncertainty, with a clear message to balance financial safety and industry burden as priorities for the year ahead.

Full results are available at APRA’s Stakeholder Survey page.

Targeted changes finalised for treatment of HELP debts in home loan assessments

APRA has finalised targeted updates to how ADIs must treat Higher Education Loan Program (HELP) debt repayments when assessing home loan applications. 

These changes aim to clarify reporting requirements and prudential expectations, ensuring more consistent treatment of HELP debts across lenders.

The updated reporting standard, revised prudential practice guide, and a detailed response letter are now available on the APRA website.

Consultation open on updates to Banking Act section 66 instruments

APRA has released minor proposals for consultation regarding instruments under section 66 of the Banking Act 1959, which restrict the use of terms like “bank” in financial business without APRA’s written consent.

The proposals update and renew exemption and determination instruments that are set to expire this year or need alignment with current practices.

Submissions are open until 15 August 2025. Details and draft instruments are available here.

Proposed changes to capital rules for annuities aim to boost competitiveness

APRA has opened consultation on changes to the capital framework for annuity products. 

The proposals would allow life insurers to hold less capital if they improve risk management, including tighter asset-liability matching. This aims to help insurers offer more competitively priced annuities while maintaining policyholder protections.

The changes respond to industry calls for better alignment with international standards and could lead to better annuity options for Australian retirees over time.

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APRA reinforces authentication controls in superannuation sector

APRA has reminded all Registrable Superannuation Entity (RSE) licensee boards to strengthen information security, following recent credential stuffing attacks exposing weak authentication practices.

RSEs must complete a self-assessment of security controls, implement multi-factor authentication or equivalent for high-risk access, and report any material breaches or control weaknesses. 

They must also identify their Accountable Person(s) under the Financial Accountability Regime responsible for compliance with CPS 234. The letter is available here.

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