Explanatory Statement
ASIC Corporations (Amendment) Instrument 2026/337
This is the Explanatory Statement for ASIC Corporations (Amendment) Instrument 2026/337 (Amending Instrument).
The Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).
Summary
1. The Amending Instrument amends ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 (Principal Instrument).
2. The Principal Instrument modifies the requirements that govern the disclosure of fees and costs in Product Disclosure Statements (PDSs) and periodic statements for superannuation products and managed investment products covered by Division 4C of Part 7.9 of the Corporations Regulations 2001 (the Corporations Regulations). The Principal Instrument wholly substitutes Schedule 10 to the Corporations Regulations.
3. The Amending Instrument amends the Principal Instrument in relation to the treatment of stamp duty when calculating transaction costs to be disclosed in a PDS for a product or option. Specifically, the stamp duty costs incurred in one financial year should be apportioned evenly over the next seven financial years. This means that the stamp duty component of transaction costs in a financial year is one seventh of the stamp duty incurred in each of the seven prior financial years. Shorter periods are used if the product or option or the Amending Instrument has been in place for fewer than seven years.
4. Prior to this amendment, the amount of stamp duty disclosed in a PDS was required to be based on the stamp duty incurred during the previous financial year (except when the product or option was not offered for a full previous financial year or was only offered in the current financial year).
Purpose of the instrument
5. The purpose of the Amending Instrument is to smooth the reporting of stamp duty to address concerns that stamp duty can be a large, irregular cost which may misrepresent the actual volatility of a product or option’s fees and costs structure and distort consumer decision-making and superannuation fund investment decisions. Stamp duty costs incurred in a financial year will be apportioned evenly over the next seven financial years for the purposes of calculating the stamp duty component of transaction costs.
6. The Amending Instrument is the outcome of a targeted review of superannuation investment disclosure requirements that ASIC undertook between August and November 2025 and subsequent public consultation. As part of this review, ASIC established a working group to provide expert advice to ASIC about whether certain disclosure settings were causing distortions to investment decisions. The working group included representatives from superannuation funds, the investment management sector, consumer advocates, and government and regulatory bodies.
Consultation
7. ASIC met with the working group once in September 2025 and once in October 2025, where feedback was sought about whether the disclosure requirements relating to stamp duty were distorting investment decisions.
8. Following this, ASIC conducted a streamlined public consultation which invited feedback on the draft Amending Instrument. The period of consultation ran from 28 November 2025 to 20 February 2026 and was supported by the publication of Media Release (25-292MR) ASIC calls for feedback on stamp duty and portfolio holdings disclosure requirements for super funds (28 November 2025) and a Simple Consultation 39 Proposed change to stamp duty disclosure requirements (CS 39).
9. ASIC received 14 submissions (13 non-confidential and one confidential) during the consultation. ASIC made targeted technical amendments to the draft legislative instrument in response to feedback. The non-confidential submissions and a summary of feedback received is available on the consultation webpage, Simple Consultation 39 Proposed change to stamp duty disclosure requirements (CS 39).
10. ASIC undertook further targeted consultation with certain industry associations on the technical amendments made to the Amending Instrument following public consultation.
Operation of the instrument
11. Section 4 of the Amending Instrument states that each instrument specified in a Schedule is amended as set out in the applicable terms of the Schedule.
12. Schedule 1 of the Amending Instrument amends section 5 of the Principal Instrument (which wholly substitutes Schedule 10 to the Corporations Regulations).
13. Item 1 of Schedule 1 to the Amending Instrument substitutes notional clause 103A of Schedule 10 to the Corporations Regulations with a new clause 103A. Clause 103A governs the calculation of transaction costs for products, options, interposed vehicles and derivative financial products disclosed in a PDS that is available during a particular financial year.
14. Subclause 103A(1) replicates the previous notional clause 103A of Schedule 10 to the Corporations Regulations for how transaction costs (other than stamp duty) are to be determined.
15. Subclause 103A(2) introduces the key change to notional clause 103A, which is to specify how, for the purposes of transaction costs, stamp duty for a product or option disclosed in a PDS that is available during a particular financial year (the current financial year) is to be determined. The overarching principle is that stamp duty incurred in a particular financial year is to be apportioned over a period of seven years.
16. Subclauses 103A(2) and 103A(3) specify how the apportionment of stamp duty is to be determined for products or options with varying periods in operation.
17. Paragraph 103A(2)(a) provides that if the product or option was first offered in the current financial year, stamp duty will be based on one-seventh of the responsible person’s reasonable estimate of stamp duty for the current financial year at the time the Product Disclosure Statement is prepared, adjusted to reflect a 12 month period.
Existing products or options
18. Paragraph 103A(2)(b) provides for how product issuers are to calculate the apportionment of stamp duty for products or options which exist at the time the Amending Instrument commences on 1 July 2026. Product issuers will initially only apportion stamp duty incurred in the immediate previous financial year after commencement of the Amending Instrument. That is, product issuers will not be required to look back the full seven years to calculate stamp duty until the Amending Instrument has been in place for seven financial years. This results in stamp duty disclosure being understated in the initial years of the Amending Instrument until the full seven year look back occurs. This is to avoid double counting of stamp duty that has already been disclosed in previous PDSs.
19. Items 1 to 6 of the table in paragraph 103A(2)(b) deal with financial years ending between 1 July 2026 and 30 June 2032. Product issuers not using a 30 June financial year end should refer to the item in the table that applies to their financial year end. For example, a product issuer whose current financial year ends on 31 December 2026 would refer to item 1 as 31 December 2026 is between 1 July 2026 and 30 June 2027. Item 7 of the table deals with financial years ending on or after 1 July 2032.
20. An example of how product issuers determine stamp duty in accordance with paragraph 103A(2)(b) is outlined in Example 1.
Example 1: Existing product stamp duty calculation for first seven years[1]
Year | 25-26 | 26-27 | 27-28 | 28-29 | 29-30 | 30-31 | 31-32 | 32-33 |
Stamp duty cost each year ($) | 200 | 100 | 300 | 250 | 100 | 150 | 250 | 200 |
1/7th of the stamp duty ($) | 29 | 14 | 43 | 36 | 14 | 21 | 36 | 29 |
| 1/7th of stamp duty cost allocated to the 7 subsequent years ($) | |||||||
Year | 25-26 | 26-27 | 27-28 | 28-29 | 29-30 | 30-31 | 31-32 | 32-33 |
25-26 |
| 29 | 29 | 29 | 29 | 29 | 29 | 29 |
26-27 |
|
| 14 | 14 | 14 | 14 | 14 | 14 |
27-28 |
|
|
| 43 | 43 | 43 | 43 | 43 |
28-29 |
|
|
|
| 36 | 36 | 36 | 36 |
29-30 |
|
|
|
|
| 14 | 14 | 14 |
30-31 |
|
|
|
|
|
| 21 | 21 |
31-32 |
|
|
|
|
|
|
| 36 |
Stamp Duty Used in PDS ($): |
| 29 | 43 | 86 | 121 | 136 | 157 | 193 |
21. In Example 1, a product issuer in 2026-27 will use Item 1 of paragraph 103A(2)(b) to determine stamp duty. In this case, stamp duty will be one-seventh of the stamp duty costs incurred in 2025-26 ($200*1/7 = $29). For the following six financial years, stamp duty is determined as one-seventh of the total stamp duty incurred in the previous financial years. So, in the 2027-28 financial year stamp duty is determined as one-seventh of the stamp duty incurred in the 2025-26 ($200*1/7 = $29) plus one-seventh of the stamp duty incurred in the 2026-27 ($100*1/7 = $14) totalling $43. This calculation is repeated for each subsequent financial year with an additional year being added to the total until seven years is reached.
New products or options
22. Paragraph 103A(2)(a) provides that for products or options first offered in the current financial year, stamp duty is to be based on one-seventh of the responsible person’s reasonable estimate for the stamp duty of the current financial year at the time the PDS is prepared, adjusted to reflect a 12-month period. This will be used for the calculation of stamp duty for the PDS in their first financial year. After this first financial year, the calculation of stamp duty reverts to one-seventh of actual stamp duty incurred in previous years (up to a maximum of seven years) in accordance with paragraph 103A(2)(b) (modified by subclause 103A(3) as necessary). As this calculation is based on actual stamp duty incurred, no adjustment is made for stamp duty amounts incurred if the first financial year is a part financial year.
23. An example of how a new product first offered after the commencement of this Amending Instrument would calculate stamp duty is outlined in Example 2.
Example 2: New product stamp duty calculation for first eight years[2]
Year | 30-31 | 30-31 | 31-32 | 32-33 | 33-34 | 34-35 | 35-36 | 36-37 | 37-38 |
Stamp duty cost each year ($) |
| 150 | 250 | 200 | 150 | 250 | 200 | 350 | 300 |
Estimated first year cost ($) | 200 |
|
|
|
|
|
|
|
|
1/7th of stamp duty cost ($) | 29 | 21 | 36 | 29 | 21 | 36 | 29 | 50 | 43 |
1/7th of stamp duty cost allocated to the 7 subsequent years |
| ||||||||
| Year | 30-31 | 31-32 | 32-33 | 33-34 | 34-35 | 35-36 | 36-37 | 37-38 |
| 30-31 | 29 | 21 | 21 | 21 | 21 | 21 | 21 | 21 |
| 31-32 |
|
| 36 | 36 | 36 | 36 | 36 | 36 |
| 32-33 |
|
|
| 29 | 29 | 29 | 29 | 29 |
| 33-34 |
|
|
|
| 21 | 21 | 21 | 21 |
| 34-35 |
|
|
|
|
| 36 | 36 | 36 |
| 35-36 |
|
|
|
|
|
| 29 | 29 |
| 36-37 |
|
|
|
|
|
|
| 50 |
Stamp duty reported in PDS ($): | 29 | 21 | 57 | 86 | 107 | 143 | 171 | 221 | |
24. In Example 2, a new product is issued on 1 January 2031, and the product issuer uses a 30 June year end. In the 2030-31 financial year, the responsible person’s reasonable estimate of stamp duty for the current financial year adjusted to reflect a 12-month period is $200. One-seventh of this estimate, $29, is used for the calculation of transaction costs in accordance with paragraph 103A(2)(a). This estimate is not used for the purposes of determining stamp duty in future financial years as it will be replaced by actual stamp duty amounts incurred by the product issuer.
25. In subsequent financial years the product issuer will use paragraph 103A(2)(b) adjusted by subclause 103A(3) to determine stamp duty. For example, in the 2031-32 financial year the product issuer will apply Item 6 in paragraph 103A(2)(b) to determine stamp duty. However, as the product only has one previous financial year, subclause 103A(3) adjusts Item 6 so the calculation is one-seventh of the total stamp duty for the previous financial year being 2030-31 ($150*1/7 = $21). As these calculations are based on actual costs incurred, no adjustment is made for 2030-31 being a part financial year (6 months).
26. If a product or option has not been offered for the previous seven financial years, stamp duty is calculated as one seventh of the stamp duty incurred in each of the financial years that the product or option has been offered.
27. Item 2 of Schedule 1 to the Amending Instrument inserts two notes at the end of notional subclause 204(7) of Schedule 10 to the Corporations Regulations. Note 1 clarifies that paragraphs (a) and (b) of notional subclause 204(7) do not require a cost or amount to be shown gross of any income tax, GST or stamp duty that is excluded by the definition of the cost or amount. Note 2 clarifies that the amount of stamp duty for a transaction cost disclosed in a PDS is to be determined in accordance with clause 103A.
28. Item 3 of Schedule 1 to the Amending Instrument omits the words “such as brokerage and buy-sell spread” from notional paragraph 209(j) of Schedule 10 to the Corporations Regulations.
29. Item 4 of Schedule 1 to the Amending Instrument adds a new subparagraph (vi) at the end of notional paragraph 209(j) of Schedule 10 to the Corporations Regulations to require that the Additional Explanation of Fees and Costs in a PDS for a superannuation product or managed investment product must include, where relevant, an explanation of how stamp duty has been calculated for the purposes of determining transaction costs.
30. Item 5 of Schedule 1 to the Amending Instrument extends the exemption from section 1017B(1) of the Corporations Act 2001 in Part 5 of the Principal Instrument to a change to a PDS made as a direct result of notional clause 103A of Schedule 10 to the Regulations as inserted by section 5 of the Amending Instrument. The effect of this extension is that a significant event notification is not required in respect of the first change to a PDS made as a direct result of the Amending Instrument.
31. The Amending Instrument commences on the later of the day the Instrument is registered on the Federal Register of Legislation and 1 July 2026.
Incorporation by reference
32. The Amending Instrument does not incorporate any matters by reference.
Retrospective application
33. The Amending Instrument does not have retrospective application.
Legislative instrument and primary legislation
34. The subject matter and policy implemented by the Amendment Instrument is more appropriate for a legislative instrument rather than primary legislation because it amends the Principal Instrument, which is itself a legislative instrument.
Duration of the instrument
35. The amendments made by the Amendment Instrument will cease to have effect on expiry of the Principal Instrument. ASIC is intending to commence a broader review of the Principal Instrument during the 2026-27 financial year and will consult on any proposed changes to the subject matter and policy of that instrument as appropriate.
Legislative authority
36. The Amendment Instrument is made under subsection 1020F(1) of the Corporations Act 2001.
37. Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
38. The Amendment Instrument is a disallowable legislative instrument.
Statement of Compatibility with Human Rights
39. The Explanatory Statement for a disallowable legislative instrument must contain a Statement of Compatibility with Human Rights under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is in the Attachment.
Attachment
Statement of Compatibility with Human Rights
This Statement of Compatibility with Human Rights is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
ASIC Corporations (Amendment) Instrument 2026/337 (Amending Instrument)
Overview
1. The Amending Instrument amends ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 (Principal Instrument).
2. The Principal Instrument modifies the requirements that govern the disclosure of fees and costs in Product Disclosure Statements (PDSs) and periodic statements for superannuation products and managed investment products covered by Division 4C of Part 7.9 of the Corporations Regulations 2001 (the Corporations Regulations). The Principal Instrument wholly substitutes Schedule 10 to the Corporations Regulations.
3. In particular, the Amending Instrument amends the Principal Instrument to require stamp duty for a product or option disclosed in a PDS to be one seventh of the stamp duty incurred in each of the seven prior financial years. Shorter periods are used if the product or option or the Amending Instrument has been in place for fewer than seven years.
Assessment of human rights implications
4. This instrument does not engage any of the applicable rights or freedoms.
Conclusion
5. This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
[1] All figures rounded to the nearest whole digit for convenience. Column totals are calculated using actual figures before rounding.
[2] All figures rounded to the nearest whole digit for convenience. Column totals are calculated using actual figures before rounding.