On 1 April 2026, the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (the Bill) passed both the House of Representatives and the Senate.
As previously mentioned, the Bill is wide ranging and includes measures in Schedule 1 that amends the Insurance Contracts Act 1984 (Cth) to establish a ban which prohibits insurers from using certain information about an individual’s genetic testing to inform the offer of life insurance cover, or the terms and conditions of the cover that is offered. Schedule 2 includes provisions that are designed to support the participation of foreign financial services providers (FFSPs) in Australia.
In regard to Schedule 2 of the Bill, the provisions that amend the Corporations Act 2001 (Cth) so that it provides for three exemptions from the requirement to hold an AFS licence are:
- Professional investor exemption: Persons that provide financial services from outside Australia to professional investors.
- Comparable investor exemption: Persons regulated by comparable regulators that provide financial services to wholesale clients.
- Market maker exemption: Persons that provide financial services that involve making a market for derivatives that are able to be traded on a specified licensed market.
Schedule 2 also provides for a fast-tracking licensing process for persons seeking to establish more permanent operations in Australia by providing an exemption for persons regulated by comparable regulators from the fit and proper person test when applying for an AFS licence to provide financial services to wholesale clients.
Next steps
The Bill will be presented to the Governor-General for Royal Assent. Upon receiving this signature, the Bill officially becomes an Act of Parliament and enters the process of becoming law.
The Bill provides that:
- Schedule 1 commences the day after the end of the period of 6 months beginning on the day the Bill receives Royal Assent.
- Schedule 2 commences the day after the end of the period of 12 months beginning on the day the Bill receives Royal Assent.