The Australian Government periodically issues APRA with a Statement of Expectations. APRA responds with a Statement of Intent, outlining how it intends to meet those expectations.

The latest versions of these documents were released in July 2026 and are available below.

APRA's statement of expectations

1. This Statement of Expectations outlines the Australian Government’s expectations for how the Australian Prudential Regulation Authority (APRA) will achieve its objectives, carry out its functions and exercise its powers. It is to be read alongside the laws that apply to APRA and the laws that APRA administers.

APRA's role

2. The Government expects APRA to:
   • 2.1. promote sound prudential outcomes to maintain the strength and stability of the financial system;
   • 2.2. balance the objectives of financial safety, efficiency and competition, contestability and competitive neutrality and, in balancing these objectives, promote financial system stability in Australia;
   • 2.3. support strong, sustainable economic growth including through its approach to regulation and by facilitating the flow of finance in a way that promotes dynamism, innovation and competition without compromising prudential objectives;
   • 2.4. require that regulated entities implement prudent practices in relation to risk management;
   • 2.5. promote a stable, safe and efficient superannuation system that delivers for members and holds trustees to account for performance and member outcomes;
   • 2.6. take a risk-based approach to prudential regulation, with the goal of a low incidence of disorderly failure in a competitive, efficient financial system and the understanding that APRA cannot and should not seek to guarantee a zero failure rate;
   • 2.7. promote a viable, competitive and innovative insurance industry;
   • 2.8. ensure macroprudential policy measures anticipate and appropriately respond to financial stability risks in coordination with relevant agencies, including the Reserve Bank of Australia;
   • 2.9. efficiently collect, analyse and publish data, to enable APRA to perform its functions, to support innovation and competition, to provide information to the public, to assist the Minister to formulate financial policy, and to support other financial sector agencies to perform their functions;
   • 2.10. advance its own technological capability, ensuring its capabilities and a culture of innovation are matched to emerging threats and aligned with the Government’s broader cyber security framework; and
   • 2.11. act independently in its regulatory, enforcement and supervisory functions.

The Government's Policy Priorities

3. The Government is focused on building a more productive, more resilient economy that works in the interests of all Australians. As part of this, the Government’s goal is for a stable and robust financial system, capable of adjusting to evolving economic conditions, withstanding global volatility and other external shocks and supporting sustainable economic growth, including by promoting dynamism, innovation and competition for the benefit of consumers and businesses.
4. APRA should support these goals by:
   • 4.1. promoting the stability of the financial system for the benefit of the community;
   • 4.2. maintaining a proportionate banking regulatory framework that maintains depositor protection and financial stability, while minimising regulatory burden on smaller banks;
   • 4.3. taking decisive action where systemic prudential or member outcome risks and failures in governance or risk management, have the potential to cause significant harm such as through the recent issues in platform investment governance;
   • 4.4. ensuring increased transparency of member outcomes, performance, and expenditure by the superannuation sector;
   • 4.5. bringing to bear expertise on insurance affordability and availability, including through the collection of insurer data to support the Government to make data-informed decisions;
   • 4.6. requiring regulated entities maintain robust cybersecurity arrangements to ensure the financial and operational resilience of those entities;
   • 4.7. promoting and monitoring responsible use of AI technologies by regulated entities to maintain safety and stability in the financial system;
   • 4.8. promoting prudent practices and transparency in relation to climate-related financial risks;
   • 4.9. working closely with the Government, and members of the Council of Financial Regulators (CFR) on the implementation of reforms to modernise the regulatory framework for payments and digital assets;
   • 4.10. taking a supervision-led and preventative approach, underpinned by early identification of systemic and material risks and a clear willingness to escalate to formal directions and enforcement action where necessary to prevent or remedy significant harm to depositors, policyholders and members, and the financial system;
   • 4.11. minimise the costs and burdens of complying with regulatory requirements for regulated entities, including by applying proportionate requirements, streamlining collection of data, considering different businesses models, and taking a principles-based approach to regulation, ultimately to benefit consumers; and
   • 4.12. being responsive and contributing expertise to financial system policy issues being considered by the Government, including providing data where appropriate and permitted.

Regulatory approach

5. The Government is committed to driving productivity and economic growth. To support this, in its regulatory activities APRA is expected to:
   • 5.1. adopt a proportionate, risk-based approach. APRA should balance risk mitigation with the need for efficiency, growth, and innovation. This means focusing regulatory, supervisory and enforcement efforts calibrated to the materiality of the risks while actively minimising unnecessary burdens on industry.
   • 5.2. demonstrate regulatory flexibility through targeted adjustments to its regulatory posture and approach as appropriate. This includes tailoring engagement and oversight to the specific risks and needs of different sectors, business models or regulated entities;
   • 5.3. maintain a regular and transparent review program for prudential standards to ensure standards remain necessary, proportionate and aligned with the interests of good prudential and member outcomes, while supporting Parliamentary and public accountability through appropriate publication of review outcomes;
   • 5.4. conduct APRA’s regulatory litigation in a manner that is consistent with the Commonwealth’s model litigant obligations;
   • 5.5. advance the Government’s productivity agenda by working closely with the Government, CFR and other regulators to promote better regulation and productivity growth in the financial sector while not compromising on APRA’s ability to fulfil its statutory obligations. This includes active collaboration and information sharing, setting key performance indicators, streamlining information and data requests, simplifying processes, aligning standards and cooperating with other regulators, and identifying, quantifying and supporting reforms that streamline regulation and foster economic dynamism; and
   • 5.6. provide greater transparency of upcoming regulatory initiatives and activities that would materially affect the financial sector, including through the Regulatory Initiatives Grid (RIG) and working with CFR agencies to operationalise the RIG coordination principles.

Relationships with stakeholders

6. In fulfilling its mandate, the Government expects APRA to:
   • 6.1. ensure that its actions are not inconsistent with the policies of the Government, in accordance with section 21 of the Public Governance, Performance, and Accountability Act 2013;
   • 6.2. work closely with the Government and Treasury, acknowledging Treasury’s policy advisory role, and provide Ministers with relevant information as per subsection 10(2) of the Australian Prudential Regulation Authority Act 1998;
   • 6.3. keep responsible Ministers informed of publications, announcements, and engagements, preferably in advance, where significant matters are involved;
   • 6.4. ensure visibility and awareness for the Government and Treasury in exercising its prudential and policy-related functions;
   • 6.5. consult and provide appropriate guidance so that regulated entities have clarity and certainty about how APRA will exercise its powers; and
   • 6.6. engage with APRA’s counterpart regulators in overseas jurisdictions and with relevant international standard-setting bodies.

Organisational matters

7. With regard to organisational matters, the Government expects:
   • 7.1. the Chair to have responsibility for the executive management of APRA, consistent with the Chair’s role as APRA’s Accountable Authority;
   • 7.2. the Chair to delegate executive management functions to APRA staff wherever the Chair considers that this would benefit the executive management of APRA;
   • 7.3. APRA’s Executive Board to act collectively under the leadership of the Chair;
   • 7.4. APRA to publish its Statement of Intent in response to this Statement of Expectations on its website, and subsequently incorporate the statements of expectations and intent in its Corporate Plan; and
   • 7.5. APRA, through its Annual Performance Statement, report publicly on the implementation of this Statement of Expectation as reflected within APRA’s Corporate Plan.

Statement of Intent

1. This Statement of Intent outlines the response of the Australian Prudential Regulation Authority (APRA) to the Government’s Statement of Expectations (SoE).

APRA’s role

2. APRA protects the Australian community by establishing and enforcing prudential standards and practices designed to ensure that, under all reasonable circumstances, financial promises made by institutions it supervises are met within a stable, efficient and competitive financial system.
   1. APRA’s supervision seeks to identify and respond to significant risks in financial institutions and the financial system in a timely and effective manner, while recognising that management and boards are ultimately accountable for the prudent operation of their institutions; 
   2. APRA’s policy and supervisory approaches are risk-based and proportionate to the size, complexity and business model of supervised institutions, while implementing international standards in a manner that is appropriate for Australian circumstances;
   3. APRA as resolution authority and administrator of the Financial Claims Scheme requires supervised institutions to be well-positioned to recover from events that may impact their financial viability or to exit in an orderly manner. While APRA seeks to reduce the likelihood of a disorderly failure of a regulated entity, it does not seek to guarantee a zero-failure rate;
   4. APRA collects, analyses and publishes data for the Australian financial sector. APRA’s strategic focus to enable data-driven decision-making will support enhanced insights, improved data sharing and more efficient data collection process to minimise reporting burden over the long-term; and
   5. APRA uses formal enforcement powers where appropriate to achieve prudential outcomes and deter unacceptable practices. APRA will hold entities to account for failures in governance or risk management that have the potential to cause significant harm.
3. In exercising its functions, APRA is required to balance the objectives of financial safety and efficiency, competition, contestability and competitive neutrality, and in doing so, APRA is to promote financial system stability in Australia.
4. APRA will continue to act independently in its regulatory, supervisory and enforcement functions and strive to be a high-performing and responsive prudential regulator for the ultimate benefit of the Australian community. As the prudential regulator for the Australian financial system, APRA has a key role enabling Australia to achieve and maintain:
   1. a strong and stable banking system able to facilitate the flow of finance to support sustainable economic growth; 
   2. a viable, competitive and innovative insurance industry that sustainably assists individuals and businesses to manage risks; and 
   3. an efficient and transparent superannuation system in which trustees are held to account for performance outcomes for members.

The Government’s policy priorities

5. APRA notes the Government’s goal for a stable and robust financial system, capable of adjusting to evolving economic conditions, withstanding global volatility and other external shocks, and supporting sustainable economic growth, while facilitating innovation and competition and ensuring consumer needs are met. APRA will continue to provide expert advice and work collaboratively with the Government, Treasury and other stakeholders to identify opportunities within APRA’s role as prudential regulator to contribute to this goal.
   1. APRA will maintain a core focus on the ongoing resilience of the banking, insurance and superannuation industries for the benefit of depositors, policyholders and superannuation fund members;
   2. APRA will require continued improvement in superannuation transparency and efficiency, and seek to maintain a low level of exposure of superannuation members to underperforming funds and funds with sub-standard practices including in relation to expenditure;
   3. APRA will through its cyber security strategy – and working collaboratively with government agencies, industry and international counterparts – continue to improve the resilience of the financial system to cyber threats, and seek to safeguard Australians’ money and data. APRA will also strengthen the resilience of its own technology and data infrastructure, consistent with the Government’s broader cyber security framework;
   4. APRA will focus on the responsible use of Artificial Intelligence technologies by regulated entities to maintain the safety and stability of the financial system;
   5. APRA will continue to bring to bear expertise on insurance availability and affordability, including collection of data to support data-informed decisions;
   6. APRA will continue to promote prudent practices and transparency in relation to climate-related risks in the Australian financial system, consistent with the Government’s sustainable finance reforms; and
   7. APRA is committed to understanding and responding to the impact of new financial activities and participants on the Australian financial system. APRA will continue to engage with the Government, Treasury and other members of the Council of Financial Regulators (CFR) on reforms to modernise the payments regulatory framework.

Regulatory Approach

6. APRA is committed to supporting the Government’s productivity agenda. APRA will continue to work with the Government, CFR and other regulators to promote better regulation in the financial sector.
   1. APRA will continue to maintain a risk-based and proportionate prudential framework, balancing its primary safety and stability objectives with efficiency and competition considerations;
   2. APRA will tailor its regulatory and supervisory oversight to the specific risks and needs of different sectors, business models or regulated entities;
   3. APRA will continue to collaborate and share information with other regulators, streamline information and data requests, simplify processes and address any inconsistencies or duplication;
   4. APRA will publish key performance indicators that demonstrate how it is minimising any undue burden for industry;
   5. APRA will continue to provide transparency to stakeholders of upcoming regulatory initiatives and activities, including through the Government’s Regulatory Initiatives Grid;
   6. APRA will continue to maintain a regular and transparent review program for prudential standards to ensure industry is not subject to undue burden, making findings public where appropriate; and
   7. APRA will conduct its regulatory litigation in a manner that is consistent with the Commonwealth’s model litigant obligations.

Relationships with external stakeholders

7. Consistent with the SoE, APRA will act independently in its regulatory functions. In doing so, APRA will work closely with the Government, Treasury and other stakeholders. APRA will provide information to Ministers in accordance with subsection 10(2) of the Australian Prudential Regulation Authority Act 1998. APRA will also provide visibility to the Government and Treasury on the exercise of APRA’s prudential functions.
8. APRA will maintain its close working relationships with CFR members and other stakeholders including other agencies to coordinate regulatory activities and minimise undue costs and regulatory burden. APRA will continue to engage closely with CFR members in connection with macroprudential policy measures designed to anticipate and respond to financial stability risks.
9. APRA will continue to provide clarity to supervised institutions regarding its prudential requirements and approach to exercising its powers, and consult with industry and broader stakeholders on proposed changes to APRA’s prudential framework.
10. APRA will work with international standard setting bodies and regulatory counterparts with a view to promoting financial stability in Australia.

Organisational matters

11. APRA will meet the Government’s expectations on organisational matters as set out in the SoE.