Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2024

Administered by Department of the Treasury

Legislation au F2024L00908 Not in force Legislative Instrument

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Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2024

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 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 issue an instrument the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to revoke any such instrument.

On 10 July 2024, APRA made the Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2024 which revokes Reporting Standard ARS 331.0 Selected Revenues and Expenses (ARS 331.0) made under Financial Sector (Collection of Data) (reporting standard) determination No. 6 of 2020 (the reporting standard).

The instrument commences the day after it is registered on the Federal Register of Legislation.

1. Background

ARS 331.0 contained requirements for the provision of selected revenues and expenses information to APRA relating to authorised deposit-taking institutions (ADIs). The Australian Bureau of Statistics (ABS) used the information collected to compile Australia’s National Accounts.

In February 2020, APRA revoked the previous version of ARS 331.0 under Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2020 and replaced it with a new reporting standard as part of the modernised Economic and Financial Statistics (EFS) data collection.

In March 2020, APRA asked entities to reinstate the former collection under ARS 331.0 at the request of the ABS and Reserve Bank of Australia in light of the volatile market movements and unprecedented economic conditions caused by the COVID-19 virus.[1]

The reinstated ARS 331.0 (the reporting standard) collected information from ADIs for the quarters ending 31 March 2020 and 30 June 2020, after which the information was no longer required.

2. Purpose and operation of the Legislative Instrument

The purpose of the Legislative Instrument is to revoke the reporting standard. It is no longer required to collect the information under the reporting standard.

Operation of the instrument

The first paragraph of the instrument identifies the source of the power that is being exercised by the delegate and is the operative paragraph that revokes the reporting standard.

The second paragraph provides that the revoked reporting standard will cease to apply on the day after the instrument is registered on the Federal Register of Legislation.

The third paragraph provides for the instrument to commence on the day after it is registered on the Federal Register of Legislation. This is the day that would apply under subsection 12(1) of the Legislation Act 2003 (Cth), if no commencement provision were made.

3. Documents incorporated by reference

Under paragraph 14(1)(a) of the Legislation Act 2003, the instrument incorporates by reference as in force from time to time:

  • Legislation Act 2003 (Cth).

All documents incorporated by reference in the instrument are available on the Federal Register of Legislation at www.legislation.gov.au.

4. Consultation

APRA conducted consultation for this instrument. In March 2020, APRA indicated to ADIs its intent to continue ARS 331.0. APRA encouraged reporting entities to contact APRA if they had concerns in meeting their reporting obligations. In April 2020, APRA notified ADIs that it would reinstate the reporting standard to continue reporting under ARS 331.0 for two more quarters.[2] APRA made it clear that the reporting would only continue until June 2020 at the time.

APRA is satisfied the consultation was appropriate and reasonably practicable.

5. Regulation Impact Statement

The Office of Impact Analysis has advised that a detailed Impact Analysis is not required for the revocation of the reporting standard.

6. 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. 7 of 2024

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instrument 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 the following instrument:

Reporting Standard ARS 331.0 Selected Revenues and Expenses made under Financial Sector (Collection of Data) (reporting standard) determination No. 6 of 2020.

Human rights implications

APRA has assessed the Legislative Instrument and is of the view that it does not engage any of the applicable rights or freedoms recognised or declared in 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/extension-of-modernised-economic-and-financial-statistics-efs-reporting-parallel-run

[2] https://www.apra.gov.au/changes-to-reporting-obligations-response-to-covid-19

Overview

The Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2024, issued by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, was enacted to address the need to discontinue the collection of selected revenues and expenses information from authorised deposit-taking institutions (ADIs) as required by the revoked Reporting Standard ARS 331.0. Initially reinstated in response to the economic volatility caused by the COVID-19 pandemic, the data collection under ARS 331.0 was deemed no longer necessary after two quarters. This determination revokes the reporting standard that was in place to gather this information, aligning with the transition back to the modernised Economic and Financial Statistics (EFS) data collection regime. The revocation of ARS 331.0 signifies the completion of the temporary data collection period, ensuring that entities no longer need to report under the superseded standard. The instrument was developed following consultations with relevant entities and in accordance with legislative requirements, including those set out in the Acts Interpretation Act 1901 and the Legislation Act 2003. APRA has confirmed that the revocation does not impact any human rights as recognised by the Human Rights (Parliamentary Scrutiny) Act 2011, ensuring the determination is compatible with human rights. The instrument will take effect on the day after its registration on the Federal Register of Legislation.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2024, made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, revokes the previously reinstated Reporting Standard ARS 331.0 Selected Revenues and Expenses. This determination applies to authorised deposit-taking institutions (ADIs) within the financial sector, mandating them to cease the collection and reporting of specific revenue and expense data to APRA. The revocation is effective from the day after the instrument is registered on the Federal Register of Legislation, marking the end of the temporary reporting requirement initially reinstated due to the economic impact of the COVID-19 pandemic. The revocation is geographically applicable across Australia, aligning with the national scope of APRA’s regulatory authority. The instrument does not include specific exclusions or thresholds but operates to streamline data collection practices, ensuring they are relevant and proportionate to current economic conditions. APRA retains the flexibility to adjust reporting standards through subordinate instruments as necessary, subject to the overarching provisions of the Financial Sector (Collection of Data) Act 2001 and the Acts Interpretation Act 1901.

Key Provisions

The Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2024 (the Instrument) revokes the reporting standard ARS 331.0 Selected Revenues and Expenses, which was previously implemented under the Financial Sector (Collection of Data) (reporting standard) determination No. 6 of 2020. The revocation is made pursuant to subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 (the Act) and takes effect the day after the Instrument is registered on the Federal Register of Legislation. This determination was necessitated by the completion of the temporary data collection required to address the economic conditions arising from the COVID-19 pandemic. The primary obligation imposed by the Instrument is for authorised deposit-taking institutions (ADIs) to cease the collection and reporting of selected revenues and expenses data to the Australian Prudential Regulation Authority (APRA) under the now-revoked reporting standard ARS 331.0. This cessation aligns with the conclusion of the temporary data collection period, which was initially reinstated in response to the economic disruptions caused by the COVID-19 pandemic. The cessation is to ensure that ADIs no longer gather and submit this data as it is no longer required for compiling Australia’s National Accounts by the Australian Bureau of Statistics (ABS). Any breach of the requirements stipulated in the Instrument could potentially result in civil or criminal consequences, although the Instrument does not explicitly detail specific penalties for non-compliance. However, under the broader Financial Sector (Collection of Data) Act 2001, non-compliance with reporting standards can lead to enforcement actions, including financial penalties. The exact penalties would depend on the nature and severity of the breach, as outlined in other sections of the Act. The revocation of ARS 331.0 is part of APRA's broader efforts to streamline and modernise data collection processes within the financial sector. By revoking this reporting standard, APRA ensures that data collection practices remain aligned with current economic needs and regulatory requirements, thereby maintaining the integrity and efficiency of financial data reporting.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.