Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025

Administered by Department of the Treasury

Legislation au F2025N00071 In force Notifiable Instrument

Legislation content

 

Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025

made under the Banking Act 1959, the Financial Sector (Shareholdings) Act 1998, the Financial Sector (Transfer and Restructure) Act 1999 and the Financial Sector (Transfer and Restructure) Regulations 2018

Compilation No. 1

Compilation date: 30 October 2025

Includes amendments: Financial Sector (Shareholdings) (Auswide Bank Limited) Amendment Instrument 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by The Treasury

About this compilation

       

This compilation

This is a compilation of the Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025 that shows the text of the law as amended and in force on 30 October 2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

Contents

Part 1—Preliminary

1  Name 

3  Authority

4  Definitions

Part 2—Approvals to exceed 20% shareholding limit

5  Approval of application

Part 3—Related approvals for a subsequent transfer of business

6  Consent to voluntary transfer of business between ADIs

7  Consent to restructuring of ADIs

8  Approval of application for transfer of business

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

 

Part 1—Preliminary

 

1  Name

  This instrument is the Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025.

3  Authority

  This instrument is made under the following:

 (a) the Banking Act 1959; and

 (b) the Financial Sector (Shareholdings) Act 1998; and

 (c) the Financial Sector (Transfer and Restructure) Act 1999; and

 (d) the Financial Sector (Transfer and Restructure) Regulations 2018.

4  Definitions

Note: Expressions have the same meaning in this instrument as in the Financial Sector (Shareholdings) Act 1998 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.

In this instrument:

ABN has the meaning given by the A New Tax System (Australian Business Number) Act 1999.

ADI (authorised deposit-taking institution) means a body corporate that is an ADI for the purposes of the Banking Act 1959.

the Act means the Financial Sector (Shareholdings) Act 1998.

Part 2—Approvals to exceed 20% shareholding limit

5  Approval of application

 (1) Under paragraph 14(1)(a) of the Act, each item of the following table grants approval to the applicant specified in the item:

 (a) to hold more than a 20% stake in the financial sector company specified in the item; and

 (b) to hold no more of the stake specified in the item in the financial sector company.

 

Item

Name of applicant

ABN of applicant

Financial sector company

ABN of financial sector company

Approved holding in the financial sector company

1

MyState Limited

26 133 623 962

Auswide Bank Limited

40 087 652 060

100%

2

MyState Bank Limited

89 067 729 195

Auswide Bank Limited

40 087 652 060

100%

 

 (2) The approval granted under subsection (1) remains in force until repealed or otherwise revoked.

Part 3—Related approvals for a subsequent transfer of business

6  Consent to voluntary transfer of business between ADIs

  Under paragraph 11(1)(e) of the Financial Sector (Transfer and Restructure) Act 1999, consent is given to the transfer of business from Auswide Bank Limited (ABN 40 087 652 060) to MyState Bank Limited (ABN 89 067 729 195).

Note: A transfer of business is also subject to approval by APRA—see section 11 of the Financial Sector (Transfer and Restructure) Act 1999.

7  Consent to restructuring of ADIs

  Under subsection 63(1) of the Banking Act 1959, consent is given to Auswide Bank Limited (ABN 40 087 652 060) to enter into an arrangement or agreement for the sale or disposal of its business to MyState Bank Limited (ABN 89 067 729 195).

8  Approval of application for transfer of business

 (1) Under paragraph 14(1)(a) of the Act, as modified by section 8 of the Financial Sector (Transfer and Restructure) Regulations 2018, approval is granted to MyState Bank Limited (ABN 89 067 729 195) to hold more than 20% of the gross assets and liabilities of Auswide Bank Limited (ABN 40 087 652 060).

 (2) The approval is to hold up to 100% of the gross assets and liabilities of Auswide Bank Limited.

 (3) The approval granted under subsection (1) remains in force until repealed or otherwise revoked.

Endnotes

 

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

 

ad = added or inserted

orig = original

am = amended

par = paragraph(s)/subparagraph(s)

amdt = amendment

/sub‑subparagraph(s)

c = clause(s)

pres = present

C[x] = Compilation No. x

prev = previous

Ch = Chapter(s)

(prev…) = previously

def = definition(s)

Pt = Part(s)

Dict = Dictionary

r = regulation(s)/rule(s)

disallowed = disallowed by Parliament

reloc = relocated

Div = Division(s)

renum = renumbered

exp = expires/expired or ceases/ceased to have

rep = repealed

effect

rs = repealed and substituted

F = Federal Register of Legislation

s = section(s)/subsection(s)

gaz = gazette

Sch = Schedule(s)

LA = Legislation Act 2003

Sdiv = Subdivision(s)

LIA = Legislative Instruments Act 2003

SLI = Select Legislative Instrument

(md not incorp) = misdescribed amendment

SR = Statutory Rules

cannot be given effect

Sub‑Ch = Sub‑Chapter(s)

mod = modified/modification

SubPt = Subpart(s)

No. = Number(s)

underlining = whole or part not

o = order(s)

commenced or to be commenced

Ord = Ordinance

 

 

 

 

 

 

Endnote 3—Legislation history

 

Name

Registration

Commencement

Application, saving and transitional provisions

Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025

28 January 2025

(F2025N00071)

29 January 2025

—

Financial Sector (Shareholdings) (Auswide Bank Limited) Amendment Instrument 2025

29 October 2025

(F2025N00858)

30 October 2025

—

 

Endnote 4—Amendment history

 

Provision affected

How affected

Part 1

 

s 2

rep LA s 48D

s 3

am F2025N00858

Part 3

 

s 6

am F2025N00858

s 8

ad F2025N00858

 

Overview

The Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025 was enacted to provide regulatory approvals for certain shareholdings and business transfers within the financial sector, specifically concerning Auswide Bank Limited. This instrument was introduced to address issues related to maintaining financial stability and ensuring compliance with existing financial sector laws. It was enacted by the Australian government under the authority of the Banking Act 1959, the Financial Sector (Shareholdings) Act 1998, the Financial Sector (Transfer and Restructure) Act 1999, and the Financial Sector (Transfer and Restructure) Regulations 2018. The primary policy objective of this instrument is to facilitate the orderly transfer and restructuring of authorised deposit-taking institutions while ensuring that the financial system remains stable and compliant with relevant legislative requirements.

Scope and Application

The Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025 is a regulatory instrument made under the Banking Act 1959, the Financial Sector (Shareholdings) Act 1998, the Financial Sector (Transfer and Restructure) Act 1999, and the Financial Sector (Transfer and Restructure) Regulations 2018. This instrument applies to the authorisation of shareholdings in Auswide Bank Limited, an authorised deposit-taking institution (ADI), exceeding the 20% limit typically imposed under the Financial Sector (Shareholdings) Act 1998. Specifically, it grants MyState Limited and MyState Bank Limited the approval to hold up to 100% of the shares in Auswide Bank Limited, which is a departure from the usual restrictions. The approval granted under this instrument remains in force until repealed or revoked. The instrument also pertains to the transfer of business between ADIs, giving consent for the voluntary transfer of business from Auswide Bank Limited to MyState Bank Limited, subject to additional approval by the Australian Prudential Regulation Authority (APRA). Additionally, it provides consent for Auswide Bank Limited to enter into arrangements for the sale or disposal of its business to MyState Bank Limited, as well as granting approval for MyState Bank Limited to hold up to 100% of Auswide Bank Limited's gross assets and liabilities. This instrument has a national jurisdictional reach, impacting the financial sector across Australia. It specifically targets entities such as MyState Limited and MyState Bank Limited, allowing them to exceed the usual shareholding limits and facilitating the restructuring and transfer of business within the financial sector. The instrument does not explicitly state any exclusions, but its applicability is confined to the specific entities and conditions outlined. The Financial Sector (Transfer and Restructure) Act 1999 and its regulations further extend the scope of this instrument by requiring additional approvals from APRA for the transfer of business between ADIs. Any uncommenced amendments and modifications to this instrument can be accessed on the legislative register, and the compiled law operates as modified by other laws, although such modifications do not amend the text of the law.

Key Provisions

The Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025 (the Instrument) sets out specific approvals and consents for shareholdings and business transfers within the financial sector, primarily involving Auswide Bank Limited and MyState Bank Limited. Under Section 5, the Instrument grants MyState Limited and MyState Bank Limited the approval to hold a 100% stake in Auswide Bank Limited. This approval is granted under Section 14(1)(a) of the Financial Sector (Shareholdings) Act 1998 and remains in force until it is repealed or revoked. In Section 6, consent is given for the voluntary transfer of business from Auswide Bank Limited to MyState Bank Limited, as stipulated under Section 11(1)(e) of the Financial Sector (Transfer and Restructure) Act 1999. Additionally, Section 7 provides consent for Auswide Bank Limited to enter into an arrangement or agreement for the sale or disposal of its business to MyState Bank Limited, in accordance with Section 63(1) of the Banking Act 1959. The Instrument imposes several obligations on the parties involved. MyState Limited and MyState Bank Limited must adhere to the shareholding limits and conditions set forth in the Instrument, ensuring that their holdings in Auswide Bank Limited do not exceed the approved limits without proper revocation of the approval. Furthermore, any transfer of business from Auswide Bank Limited to MyState Bank Limited must comply with the conditions specified in Sections 6 and 7, including obtaining necessary approvals from the Australian Prudential Regulation Authority (APRA). Auswide Bank Limited is required to cooperate with MyState Bank Limited in the restructuring process and ensure that all business transfer activities comply with the provisions of the Banking Act 1959. Breaches of the conditions set out in the Instrument may result in various consequences. Firstly, if MyState Limited or MyState Bank Limited exceeds the approved shareholding limits without proper revocation, they could face penalties under Section 14(1)(a) of the Financial Sector (Shareholdings) Act 1998, which may include fines or other administrative sanctions. Secondly, if the transfer of business from Auswide Bank Limited to MyState Bank Limited does not comply with the conditions specified in Sections 6 and 7, both institutions could be subject to penalties under the Financial Sector (Transfer and Restructure) Act 1999. These penalties may include fines, revocation of approvals, or other enforcement actions by APRA. Additionally, any failure to comply with the conditions imposed by the Banking Act 1959 could result in further penalties or legal actions against the involved parties.

Legal classification tags

Area of Law
Financial Sector (Shareholdings)
Instrument
Instrument
Concepts
Definitions & Interpretation
Regulatory Standards
Licensing & Registration

Interactions

Authorises

All Versions

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.