Funds Update - 17 July 2026

In this Funds Update for 17 July 2026:

1. Treasury releases final report on the 2023 unfair contract terms reforms
2. ASIC announces estimated industry funding levies for 2025-26
3. Simplified legislative instrument for platform operators released
4. Re-making qualified accountant instrument

Treasury releases final report on the 2023 unfair contract terms reforms 

In late June 2026, Treasury released a report on its review of amendments to the unfair contract terms (UCT) provisions introduced by the Treasury Laws Amendment (More competition, Better Prices) Act 2022 (Amending Act).  The Amending Act, which commenced on 9 November 2023, amended the UCT provisions in both the Australian Securities and Investments Commission Act 2001 (ASIC Act) and the Australian Consumer Law (ACL) and increased the scope of the UCT provisions. 

The Treasury review largely supports the changes introduced by the Amending Act and  

found that: 

• the Amending Act’s introduction of civil penalties for breaches of the UCT provisions had enhanced the UCT regime, addressing a lack of deterrence in the previous penalty regime which was based solely on voiding unfair provisions; and 
• the current lack of infringement notice powers limits the regulators’ ability to respond to minor breaches of the UCT provisions. 

The ASIC Act UCT provisions now apply to contracts where the upfront price payable under the contract is $5 million (increased from $300,000).  Further, both the ACL and the ASIC Act UCT provisions now apply if one party to a small business contract is a business that either: 

•         employs fewer than 100 persons (up from 20 or fewer); or 

•         has an annual turnover of less than $10 million for the previous income year.

The review found that these thresholds are appropriate and should not be changed in the near term.  However, noting some stakeholders had express concern about the application of the UCT provisions to small subsidiaries in large corporate groups and to sophisticated financial market participants, Treasury also stated that ASIC and the ACCC should consider guidance on how the small business threshold applies to corporate group entities and wholesale financial market participants. 

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ASIC announces estimated industry funding levies for 2025-26

ASIC has released its estimated industry funding levies for 2025-26. 

ASIC’s estimated recoverable costs have increased by 19%, from $336.7million in 2024-2025 to $400.5 million in 2025-2026.

The estimated levies for responsible entities and wholesale trustees have materially increased.

• For responsible entities the estimated minimum levy is $7,000, plus $16.52 per $1 million of assets above the $10 million threshold, an increase of 21% compared to last year’s levy. 
• For wholesale trustees the estimated minimum levy is $1,000, plus $6.83 per $1 million of adjusted total assets.  This is an increase of 31% compared to last year’s levy. 

The main driver of these increases is higher enforcement costs.  ASIC also notes that supervision and surveillance costs are also higher. This reflects ASIC’s increased regulatory activity in these sectors.

These figures are a guide only and final levies will be published in December 2026 and invoiced between January and March 2027. 

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Simplified legislative instrument for platform operators released  

On 7 July 2026, ASIC issued the ASIC Corporations (Platforms—IDPSs and IDPS-like Schemes) Instrument 2026/395 (Instrument) to simplify the instrument for operators of investor directed portfolio services (IDPS) and IDPS-like schemes. 

The new Instrument consolidates the previous ASIC instruments, replacing the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668 and ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669. 

Regulatory Guide 148 Platforms that are managed investment schemes and nominee and custody services will be updated to reflect the new instrument in the coming months.

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Re-making qualified accountant instrument 

ASIC announced on 15 July 2026 that it is remaking the ASIC Corporations (Qualified Accountant) Instrument 2016/786, which identifies the professional bodies whose members can be ‘qualified accountants’ under the Corporations Act 2001 (Cth) (Corporations Act), for the purposes of section 88B(2) of the Corporations Act. The current instrument expires on 1 October 2026, and will be remade for 10 years. 

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