Chalmers instructs financial regulators to prioritise economic growth

• Australian regulators APRA and ASIC must now give greater weight to promoting economic growth.
• The strategy aims to cut compliance burdens while maintaining consumer protections and financial stability.
• The instruction aligns with ongoing efforts to lift national productivity following post-pandemic slowdowns.

Treasurer Jim Chalmers issued new statements of expectations to the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission requiring them to focus more on economic growth.

This policy change targets Australia's sluggish productivity performance following a period of economic slowdown after the pandemic.

"This is all about enabling our financial regulators to unlock more productivity and more growth in our economy," said Treasurer Jim Chalmers.

The government previously outlined plans to reduce regulatory compliance costs across the economy by $10.2 billion annually.

The update explicitly directs regulators to apply proportionate, risk-based oversight without compromising financial stability or market integrity.

Following the announcement, the broader market indices were largely unchanged as investors evaluated the regulatory shifts.

The direction builds upon outcomes established during the government's recent Economic Reform Roundtable aimed at removing operational bottlenecks.