Financial Sector (Collection of Data) (reporting standard) determination No. 19 of 2025
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001, sections 13 and 15
Acts Interpretation Act 1901, section 33
Under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA has the power to determine reporting standards, in writing, with which certain financial sector entities must comply. Such standards relate to reporting financial or accounting data and other information regarding the business or activities of the entities. Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character 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.
Subsection 15(1) of the Act provides that APRA may declare a day on and after which the reporting standards are to apply.
On 11 September 2025, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 19 of 2025 which:
- revokes Reporting Standard ARS 223.0 Residential Mortgage Lending (ARS 223.0) made under Financial Sector (Collection of Data) (reporting standard) determination No. 56 of 2023; and
- determines a new version of ARS 223.0.
The instrument commences at the start of the day after the day it is registered on the Federal Register of Legislation.
1. Background
APRA is the prudential regulator for banking, insurance and superannuation entities, and collects financial sector data for its own uses and on behalf of the Reserve Bank of Australia and the Australian Bureau of Statistics.
ARS 223.0 sets out the requirements for certain authorised deposit-taking institutions (ADIs) and in certain circumstances, immediate parent non-operating holding companies (NOHCs) of ADIs, to report information to APRA relating to residential mortgage lending. It states the specific data items ADIs and where relevant, immediate parent NOHCs of ADIs, need to submit, provides definitions and instructions on how to measure and report these items, and states timelines and quality requirements for providing the data to APRA.
From February 2025 to March 2025, APRA consulted on targeted changes to ARS 223.0 concerning the manner in which ADIs account for Higher Education Loan Program (HELP) debt repayments when assessing home loan applications. In June 2025, APRA released a response to submissions on these proposed changes, including the final changes to ARS 223.0[1]. In September 2025, APRA redetermined ARS 223.0 to capture the final changes to ARS 223.0.
2. Purpose and operation of the instrument
The purpose of the instrument is to revoke ARS 223.0 and replace it with a new version. The reporting standard sets out the requirements for the provision of information to APRA relating to residential mortgage lending by certain ADIs and in certain circumstances, immediate parent NOHCs of ADIs.
The new version of ARS 223.0 will ensure that APRA’s reporting framework provides clarity on how HELP debt should be considered and reaffirm the flexibility available to ADIs to consider the individual circumstances of borrowers, including the nature of their HELP debts.
The new version of ARS 223.0 applies to reporting periods ending on or after 30 September 2025. While the new version of ARS 223.0 requires reporting for reporting periods that started prior to its commencement, it is not retrospective in operation as the obligation to report on these reporting periods started from, and not prior to, its commencement.
Explanation of each provision in the instrument
Authority – paragraph 1
This paragraph outlines APRA’s power to determine reporting standards that are required to be complied with by relevant financial sector entities under paragraph 13(1)(a) of the Act.
Purpose – paragraph 2
This paragraph explains the purpose of APRA’s collection of information under the reporting standard. Information collected under the reporting standard will be used by APRA for the purpose of prudential supervision. It may also be used by the Reserve Bank of Australia.
Application and commencement – paragraphs 3 - 6
These paragraphs state which financial sector entities must comply with the reporting standard as permitted by section 13 of the Act, and when the reporting standard begins to apply.
Information required – paragraphs 7 and 8
These paragraphs state what information relevant financial sector entities must provide to APRA for each reporting period as permitted by paragraphs 13(2)(a) and (b) of the Act.
Method of submission – paragraph 9
This paragraph specifies how information required by the reporting standard must be given to APRA as permitted by paragraph 13(2)(e) of the Act.
Reporting periods and due dates – paragraphs 10-13
Paragraphs 13(2)(d)-(f) of the Act permit reporting standards determined by APRA to include matters related to:
- the times as at which, or the periods to which, the information in reporting documents is to relate;
- the giving of reporting documents to APRA, and when they should be provided; and
- the discretion of APRA, in particular cases, to vary reporting standards, including, but not limited to, the discretion to vary when entities are to provide documents.
Paragraph 13(2)(bb) of the Act permits reporting standards determined by APRA to include matters related to the auditing of reporting documents.
Paragraphs 10-13 rely on these provisions. Paragraph 10 states that ADIs are to provide the information required by the reporting standard in respect of each calendar quarter. Paragraph 12 permits APRA to vary the reporting periods mentioned in paragraph 10 by notice, if, having regard to the particular circumstances of an ADI and the extent to which the information is required for the purposes of the prudential supervision of the ADI, APRA considers it necessary or desirable to obtain information at a different frequency than stated in paragraph 10. Paragraph 11 specifies the due dates for the provision of information to APRA – within 35 calendar days after the end of the relevant reporting period. Paragraph 13 states that APRA may grant an extension of a due date in paragraph 11 in writing.
Quality control – paragraphs 14-15
Paragraph 14 states that information provided under the reporting standard must be the product of processes and controls that have been reviewed and tested by the ADI’s external auditor. Paragraph 15 states that all information provided under the reporting standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information.
Authorisation – paragraph 16
Paragraph 16 states how information provided to APRA should be authenticated.
Variations – paragraphs 17 - 18
Paragraph 17 states that APRA may make certain minor variations to a form that is part of the reporting standard and the instructions to such a form, as provided for in paragraph 13(2)(f) of the Act. Paragraph 18 states that APRA must notify each ADI that is required to report under the reporting standard if it makes such a variation.
Interpretation – paragraphs 19-21
Paragraph 19 provides definitions of common terms used throughout the reporting standard. Paragraph 20 states that unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard or Australian Accounting or Auditing Standard (including related guidance) is a reference to the instrument as in force or existing from time to time. Paragraph 21 states that where the reporting standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.
General directions and notes
The general directions and notes contain details on the data to be reported to APRA under the reporting standard. Information in the general directions and notes applies to all data items in the reporting standard.
Specific instructions
The specific instructions list the specific data items that must be reported to APRA and how relevant financial sector entities should determine these items.
Documents incorporated by reference
Under paragraph 14(1)(a) of the Legislation Act 2003, the reporting standard incorporates by reference as in force from time to time:
- Acts of Parliament;
- Prudential Standards determined by APRA under section 11AF of the Banking Act 1959;
- Reporting Standards determined by APRA under subsection 13(1) of the Act; and
- Australian Accounting Standards determined by the Australian Accounting Standards Board under section 334 of the Corporations Act 2001 (Cth).
These documents may be freely obtained at www.legislation.gov.au (all documents listed above except for Australian Accounting Standards), and https://www.aasb.gov.au/pronouncements/accounting-standards/ (Australian Accounting Standards).
Under paragraph 14(1)(b) of the Legislation Act 2003, the reporting standard incorporates the following document as in force or existing at a time before the commencement of the reporting standard:
- The Australian Bureau of Statistics’ (ABS) Functional Classification of Buildings, 1999 (Revision 2011) Cat. no. 1268.0.55.001. This document may be freely obtained at https://www.abs.gov.au/AUSSTATS/abs@.nsf/allprimarymainfeatures/F9DC56661E2A811DCA2570AF0045731D?opendocument=.
Exercise of discretion by APRA
There are a number of powers that may be exercised by APRA in reporting standards that involve an element of discretion and which may impact the interests of the entities to which the reporting standards apply. These decisions include APRA changing a reporting period or due date for an entity to provide required information.
The need to apply discretion is largely driven by entity specific issues and circumstances which are not adequately addressed by the generally applicable provisions of the reporting standards.
APRA will exercise the power to vary the reporting requirements in relation to a relevant entity if it is satisfied that this will achieve a better reporting or prudential outcome than if it remained in its original form. For example, a change to a reporting period or due date might be determined on APRA’s initiative taking into account APRA’s assessment of whether existing data will be sufficient for APRA’s prudential supervision purposes, or whether APRA will have the required data by a particular date. Alternatively, a change to a reporting period or due date might be considered by APRA at the request of an entity, where the entity is able to demonstrate that it would not be appropriate or feasible to provide data for a particular reporting period or by a particular date.
APRA considers a wide range of factors when exercising its discretion under reporting standards, including limiting regulatory burden or correcting errors or inconsistencies in the reporting standards.
The exercise of APRA’s powers is governed by a robust decision-making framework which is documented in APRA’s internal policies. This framework supports APRA in fulfilling its mandate by limiting decision-making to APRA officers with the appropriate experience and skill to exercise prudent judgement.
Review of decisions
APRA considers that decisions made by APRA in exercising discretion under its reporting standards should not be subject to merits review as they are financial decisions with a significant public interest element.
APRA’s reporting standards collect financial data from regulated entities. This data contains critical indicators of a regulated entity’s financial wellbeing. APRA relies heavily on this financial data to inform its supervisory actions towards its regulated entities. Without timely and complete data, APRA may miss indicators that an entity is taking on imprudent risk or is in distress. APRA’s supervisory decisions may be jeopardised if its receipt of data is unreliable due to entities seeking merits review under its reporting standards.
3. Consultation
From February to March 2025, APRA undertook public consultation on updates to ARS 223.0 regarding the treatment by ADIs of HELP debt repayments when assessing home loan applications.
Submissions were received from reporting ADIs, industry bodies and academia. APRA incorporated feedback received into the final version of the new ARS 223.0 and provided additional guidance for reporting.
In June 2025, APRA released the finalised version of the new ARS 223.0[2].
APRA is satisfied the consultation was appropriate and reasonably practicable.
4. Regulation Impact Statement
The Office of Impact Analysis confirmed that a Regulation Impact Statement was not required.
5. Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
A Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is provided at Attachment A to this Explanatory Statement.
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Financial Sector (Collection of Data) (reporting standard) determination No. 19 of 2025
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared by the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act).
Overview of the Legislative Instrument
The purpose of the Legislative Instrument is to revoke Reporting Standard ARS 223.0 Residential Mortgage Lending (ARS 223.0) made under Financial Sector (Collection of Data) (reporting standard) determination No. 56 of 2023 and replace it with a new version of ARS 223.0.
The Legislative Instrument will enable APRA to collect certain information relating to residential mortgage lending from certain authorised deposit-taking institutions (ADIs) and in certain circumstances, from immediate parent non-operating holding companies of ADIs.
Human rights implications
APRA has assessed the Legislative Instrument and is of the view that it does not engage any applicable rights or freedoms recognised or declared by the international instruments listed in section 3 of the HRPS Act. Accordingly, in APRA's assessment, the Legislative Instrument is compatible with human rights.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
[1] https://www.apra.gov.au/clarifying-treatment-of-higher-education-loan-program-debt-obligations
[2] Please see: https://www.apra.gov.au/clarifying-treatment-of-higher-education-loan-program-debt-obligations.