pc
nid 93898
Jul 10, 2026
kgurnani@vixio.com
Australia
Australian Prudential Regulation Authority
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1585 charsAustralian Prudential Regulation Authority Consults on Minor Updates to Prudential and Reporting Framework
On August 21, 2026, the Australian Prudential Regulation Authority (APRA) released for consultation a number of minor updates to the prudential and reporting framework applicable to authorised deposit-taking institutions (ADIs), general insurers, life insurers, private health insurers, and registrable superannuation entity (RSE) licensees.
The proposed amendments are primarily technical clarifications and do not present any material change in policy settings. This consultation is part of APRA's minor framework update process, which is intended to ensure technical and clarifying changes to the prudential framework can be made in a timely manner. The updates apply across the full scope of APRA's regulatory remit, covering the deposit-taking, insurance, and superannuation sectors. APRA supervises institutions holding approximately $9.8 trillion in assets for Australian depositors, policyholders, and superannuation fund members, making these updates relevant to a broad range of financial services providers.
The consultation materials, including a letter to ADIs, insurers and RSE licensees, draft standards, and draft guidance, are available on the APRA website. Submissions on the proposed amendments must be provided no later than August 21, 2026. Further information can be obtained by contacting APRA on 1300 558 849, or the APRA Media Unit on +61 2 9210 3636 for media enquiries.
REFERENCES:
Australian Prudential Regulation Authority. "APRA consults on additional minor updates to the prudential and reporting framework." Accessed [date]. https://www.apra.gov.au/
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1942 charsAustralian Prudential Regulation Authority Consults on Minor Updates to Prudential and Reporting Framework
On July 10, 2026, the Australian Prudential Regulation Authority (APRA) opened a consultation on a package of minor technical amendments to its prudential and reporting framework.
The proposals affect 10 prudential standards, 15 reporting standards and two prudential practice guides, but APRA says they do not introduce new policy requirements or materially change existing obligations. Their purpose is to correct drafting issues, remove outdated references, clarify how existing rules should be applied and improve the quality of regulatory data.
For authorised deposit-taking institutions, including banks, the package would:
Clarify the leverage-ratio treatment of securitised exposures under APS 110 .
Replace outdated references to “Tier 1” capital with Common Equity Tier 1, reflecting the removal of Additional Tier 1 capital.
Clarify the capital treatment of trail commission assets and residual-value risks associated with leases.
Increase the credit conversion factor for undrawn servicer cash advances under APS 120 from zero to 10 percent, correcting an omission from Australia’s Basel III implementation.
Clarify when concessions granted to borrowers in financial difficulty constitute a restructured exposure, while allowing proportionate credit assessments for some short-term retail hardship cases.
APRA is also proposing several reporting changes, including updates to superannuation reporting tables to prevent duplicate data, corrections to banking capital and interest-rate-risk reporting instructions, removal of a restriction requiring currencies to appear in the ISO 4217 list , and the remaking of several reporting standards that are due to sunset in 2027.
Submissions are due by 21 August 2026. APRA expects to finalise the package in November 2026, with most amendments taking effect from 1 January 2027. Reporting standards approaching their statutory sunset dates will take effect when they are remade.