AFIA calls for policy reform to regulate for growth not risk
29 July 2025
The Australian Finance Industry Association (AFIA) is calling on the Australian Government to focus on smarter regulation, digital innovation and targeted policy reform to unlock Australia’s productivity potential.
In its submission to Treasury’s Economic Reform Roundtable, AFIA provides a wide-ranging set of reform recommendations across financial services, capital markets, artificial intelligence (AI), housing and taxation, that if adopted would help build a more prosperous Australia.
“Regulation is where Australia’s productivity manifests – it determines how capital, labour and technology are allocated,” AFIA CEO Diane Tate said.
“Australia needs a policy framework that supports innovation, competition and investment while safeguarding consumers. One that empowers markets, rather than simply fearing disruption.”
“Nowhere is this more urgent than in financial services and as AI moves from concept to reality, we need a regulatory and policy architecture that encourages innovation to unlock productivity gains across the economy and deliver better outcomes for consumers and businesses.”
Key recommendations from AFIA’s submission include:
A productivity-focussed Statement of Regulatory Expectations for financial regulators to specify expectations and outcomes for regulation to deliver productivity, growth and wellbeing outcomes
Expanding the Council of Financial Regulators to include the ACCC so competition and innovation can be prioritised alongside financial stability, market efficiency and consumer protection
Reforms aimed at creating more efficient capital markets to ensure resources are allocated to their greatest benefit while increasing the stability and resilience of the financial system and economy
A balanced approach to the regulation of AI to unlock up to $60 billion in economic growth by 2035 from AI adoption across the finance industry1
Continuing to invest in education for consumers and businesses to improve financial and digital literacy and cybersecurity upskilling
Evidence-based and proven electric and hybrid vehicle policies to maintain Australia’s progress transitioning to lower-emissions transport, and ultimately, achieving our net zero ambitions
A holistic review of taxation considering all components of the revenue base to shape a comprehensive reform program with productivity growth and intergenerational fairness front of mind
A comprehensive review of housing and planning policy to ensure a holistic and long-term approach to improving housing accessibility
See the PDF version of this Media Release here.