Mackay Chapman September 2025 APRA Update

In this month’s APRA update:

• APRA consults on minor updates to its framework
• Superannuation statistics for June 2025
• APRA consults on making insurance data public
• Plans to support small and medium-sized banks
• APRA increases capital requirement and imposes conditions on KeyInvest

Keep reading for more information and key details.

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APRA consults on minor updates to its framework

APRA has opened a consultation for a number of minor updates to its prudential and reporting framework. 

The proposed changes are for authorised deposit-taking institutions (ADIs), insurers, and registrable superannuation entity (RSE) licensees. The updates are primarily technical clarifications and do not represent a material change in policy. 

APRA is taking submissions on the proposed changes until September 22, 2025.

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APRA releases superannuation statistics for June 2025

APRA has released its quarterly superannuation statistics for the June 2025 quarter. 

The report shows that total superannuation assets grew by 9.8% over the year to reach a record $4.3 trillion, with $3.0 trillion held in APRA-regulated funds. 

Total contributions also saw a significant increase, rising by 14.1% over the year, while benefit payments grew by 12.8%. 

These statistics highlight the continued growth of Australia's superannuation system.

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APRA consults on making insurance data public

APRA has released a consultation on new proposals for the general insurance (GI) and life insurance (LI) industries. The proposal aims to make certain statistical information non-confidential, meaning it would become public. 

This is part of a plan to update and enhance statistical publications for both industries.

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APRA announces plans to support small and medium-sized banks

APRA will make changes to its banking framework to reduce the regulatory burden on small and medium-sized banks. This follows a review by the Council of Financial Regulators (CFR), which found that while these banks are essential for competition and consumer choice, they face challenges due to high fixed costs and smaller scale. 

APRA has committed to four key actions, including formalising a tiered approach to regulation based on bank size and streamlining the licensing process. 

APRA Chair John Lonsdale stated that the changes strike a balance between lowering the regulatory burden and ensuring all banks remain financially resilient.

More information is available here.

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APRA increases capital requirement and imposes conditions on KeyInvest

APRA has placed an additional $5.5 million capital requirement and new licence conditions on KeyInvest Limited, a life insurance and friendly society. 

The action follows an independent review that identified shortcomings in KeyInvest’s risk management framework and concerns about the board's oversight. The company is now required to implement a remediation plan and develop a board renewal plan, with the extra capital requirement remaining until APRA is satisfied its concerns have been addressed. 

APRA Member Suzanne Smith stated the increased capital requirement reflects heightened prudential risks and is designed to incentivise the company to complete its remedial work to protect policyholders.

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