Financial Sector (Collection of Data) (reporting standard) determination No. 8 of 2024

Administered by Department of the Treasury

Legislation au F2024L00909 Not in force Legislative Instrument

Legislation content

Financial Sector (Collection of Data) (reporting standard) determination No. 8 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. 8 of 2024 which revokes Reporting Standard ARS 332.0 Statement of Economic Activity (ARS 332.0) made under Financial Sector (Collection of Data) (reporting standard) determination No. 30 of 2018 (the reporting standard).

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

1. Background

In 2008, APRA introduced new reporting requirements for authorised deposit-taking institutions (ADIs) as part of its implementation of a revised prudential framework based on the Basel Committee’s measures known as Basel II in Australia. The existing and previous versions of ARS 332.0 formed part of these reporting requirements. The Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS) are key users of this data.

Following the introduction of the modernised Economic and Financial Statistics (EFS) data collection in 2019, the data is no longer required by the ABS and RBA. The data collection ceased in March 2020.

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 the response letter Response to submissions: Proposed changes to modernised Economic and Financial Statistics (EFS) reporting standards and guidance[1] to the consultation on the EFS collection, APRA informed affected ADIs that existing reporting requirements were expected to continue until the new EFS reporting standards take effect. The reporting requirement ceased in March 2020.

The key users of the ARS 332.0 data, the ABS and RBA, have agreed that ARS 332.0 is no longer needed.

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. 8 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 332.0 Statement of Economic Activity made under Financial Sector (Collection of Data) (reporting standard) determination No. 30 of 2018.

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/response-to-submissions-proposed-changes-to-modernised-economic-and-financial-statistics-efs.

Overview

The Financial Sector (Collection of Data) (reporting standard) determination No. 8 of 2024 was enacted to address the redundancy of certain data collection practices within the financial sector. The determination, made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, revokes the previously established reporting standard ARS 332.0 Statement of Economic Activity, which was originally introduced as part of the Basel II framework in 2008. The purpose of this revocation is to align with the modernised Economic and Financial Statistics (EFS) data collection process, which ceased requiring this data in March 2020. The Legislative Instrument is designed to streamline data collection processes for authorised deposit-taking institutions, ensuring that outdated reporting requirements are removed. The instrument was introduced after consultation with the Australian Bureau of Statistics (ABS) and the Reserve Bank of Australia (RBA), who confirmed that the data was no longer needed.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determination No. 8 of 2024 applies to financial sector entities within the Commonwealth of Australia, specifically those previously subject to the requirements of the revoked Reporting Standard ARS 332.0 Statement of Economic Activity. This determination revokes the aforementioned reporting standard, which was previously established under Financial Sector (Collection of Data) (reporting standard) determination No. 30 of 2018. The instrument, made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, mandates the cessation of compliance with ARS 332.0 following its registration on the Federal Register of Legislation. The revocation of ARS 332.0 aligns with the cessation of data collection by the Australian Bureau of Statistics and the Reserve Bank of Australia, which occurred in March 2020, following the introduction of the modernised Economic and Financial Statistics (EFS) data collection. The instrument is compatible with human rights, as per the Statement of Compatibility under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Financial Sector (Collection of Data) (reporting standard) determination No. 8 of 2024, issued by the Australian Prudential Regulation Authority (APRA), revokes the previously established Reporting Standard ARS 332.0 Statement of Economic Activity, which was part of the Financial Sector (Collection of Data) (reporting standard) determination No. 30 of 2018. This decision is based on the introduction of a modernised Economic and Financial Statistics (EFS) data collection, which rendered the data collected under ARS 332.0 obsolete. The primary objective of this determination is to streamline data collection processes by eliminating redundant reporting requirements. The determination will come into effect the day after it is registered on the Federal Register of Legislation. The determination imposes specific obligations on financial sector entities, primarily those authorised deposit-taking institutions (ADIs) that were previously required to report under ARS 332.0. With the revocation of ARS 332.0, these entities are no longer obligated to submit reports under the repealed standard. Instead, they should align with the new EFS reporting standards that have replaced the old requirements. The determination ensures that the entities focus on providing data that is relevant and useful for current regulatory and statistical purposes. The Financial Sector (Collection of Data) Act 2001 empowers APRA to set such reporting standards, and compliance is mandatory for the governed entities. There are no explicit offences, penalties, or civil or criminal consequences outlined in the determination for non-compliance with the revocation of ARS 332.0. However, failure to adhere to APRA's reporting standards generally can lead to various repercussions. Under the Financial Sector (Collection of Data) Act 2001, non-compliance with reporting standards can result in enforcement actions, including fines, public reprimands, and other regulatory penalties. The specific penalties depend on the nature and severity of the non-compliance and are determined by APRA on a case-by-case basis. While the revocation itself does not introduce new penalties, it underscores the importance of adhering to current, relevant reporting standards to avoid potential regulatory actions.

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Finance & Banking Law
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Reporting & Disclosure Obligations
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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.