The prudential watchdog says “getting the balance right” on regulations is one of four strategic priorities this financial year, in line with federal efforts to ease the compliance burden.

“As productivity concerns have become more pronounced economy-wide, we have increased our focus on competition and efficiency considerations,” the Australian Prudential Regulation Authority’s 2025-26 corporate plan states. 

“By design, our prudential standards avoid overly prescriptive requirements which would otherwise stymie innovation and increase compliance costs.”

APRA says it will work to remove unnecessary or duplicative rules for the insurance, banking and superannuation industries.

Chair John Lonsdale said: “We’ve given a lot of prominence in the corporate plan to … getting the balance right. The first thing I’d say is, it’s not a new issue for us. We’re a safety regulator. We’ve got a strong and resilient financial system, but it’s not safety at all costs.

“In this plan, we have identified nine initiatives to minimise burden and support productivity, without compromising our safety and stability objectives. We are working closely with the government and other regulators on various initiatives.”

The federal government has made lifting productivity a major economic policy goal.

After last week’s economic reform roundtable, Federal Treasurer Jim Chalmers said “better regulation and how we cut the clutter when it comes to reg” is one of 10 potential areas for action. 

Dr Chalmers said he and Finance Minister Katy Gallagher have written to major regulators “seeking specific ideas on better regulation, dereg, cutting red tape, cutting compliance costs and better regulation, working out where regulation is not serving its intended purpose, and to work out what action we can take there”.