Uncertainty continues re bill to enact FFSP AFSL exemptions

Summary

The New Bill to enact new FFSP AFSL exemptions has not been considered by the Senate since Parliament resumed on 4 February 2025. 

The New Bill is listed, along with 91 other bills, for consideration by the Senate but there is no indication of when it may be considered or whether it could be considered before the election is called. 

The next possible sitting date is 25 March 2025 and if the New Bill is not passed before the election is called, the New Bill will lapse.  

Background

• The passporting exemptions and limited connection exemption from the need to hold an Australian financial services licence (AFSL) that have been used by foreign financial services providers (FFSPs) since 2003 are due to expire on 31 March 2026 (see our earlier article of 31 July 2024).
• A bill was introduced into Parliament to introduce new FFSP exemptions in 2022 but that bill lapsed on the calling of the general election in 2022 (see our earlier article of 11 April 2022).
• In November 2023, following a change in Government, a second bill was introduced into Parliament, to introduce new AFSL exemptions for FFSPs (see our article of 30 November 2023) (Bill).
• In early 2024, the Senate Economics Legislation Committee considered the draft Bill (see our article of 16 February 2024). The Committee delivered its report on the draft Bill on 10 May 2024, which recommended the Bill be passed and noted there was “widespread support” for the AFSL exemptions for FFSPs (see our article of 10 May 2024).
• The Bill was agreed to by the House of Representatives on 9 October 2024, and subsequently introduced and read for the first time by the Senate on 10 October 2024.
• On 28 November 2024, the Bill was divided into two separate bills.
• The new Treasury Laws Amendment (Miscellaneous Measures) Bill 2024 (New Bill) contains the provisions relating to the FFSP AFSL exemptions from the Bill (but not the superannuation related tax changes from the Bill, which are now in a separate bill) (see our article of 2 December 2024).

Update

Parliament sitting days resumed on 4 February 2025 but the New Bill has not yet been tabled and read by the Senate. 

The New Bill is listed, along with 91 other bills, for consideration by the Senate but there is no indication of when the New Bill may be considered or whether it could be considered before the election is called. The next possible sitting date is 25 March 2025.

If the New Bill is not passed before the election is called then the New Bill will lapse, as occurred in 2022. The general election must be held at the latest by 24 May 2025.