Bill to enact new FFSP AFSL exemptions has lapsed

Today the Government called a federal election, Parliament has been dissolved and the new bill to enact new foreign financial service provider (FFSP) Australian financial services licence (AFSL) exemptions has lapsed.

We must wait for an update from the returned Government after the election in relation to the bill and from ASIC in relation to whether the current 31 March 2026 termination date for the limited connection and passporting exemptions may be extended.

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).
   
• It remained unclear whether the New Bill would be passed before the next federal election was called (see our article of 17 February 2025).

Update

Today the Government called a federal election to be held on 3 May 2025 and Parliament has been dissolved.

As the New Bill was not passed by the Senate before the dissolution of Parliament, it has lapsed.

We must wait for an update from:

• the returned Government after the election in relation to the bill; and
   
• ASIC in relation to whether the current 31 March 2026 termination date for the limited connection and passporting exemptions may be extended.