On 7 October 2025, the Australian Government introduced the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025, marking a significant step toward enhancing transparency and resilience in financial markets.
This bill proposes targeted amendments to the Corporations Act 2001, focusing on the substantial holdings disclosure regime. These reforms aim to close regulatory gaps and align Australia’s financial system with international best practices.
Key Proposed Changes
Inclusion of Cash-Settled Derivatives
Currently, only physically settled derivatives are considered when calculating substantial shareholdings. The proposed changes will expand this scope to include cash-settled equity derivatives, ensuring all relevant financial instruments are captured in disclosure obligations. This move is expected to improve market transparency and reduce the risk of hidden ownership structures.
Broader Issuer Coverage
The bill also extends the substantial shareholding tracing regime to foreign-incorporated entities listed on Australian financial markets. This ensures overseas companies operating in Australia are subject to the same disclosure standards as domestic issuers, promoting fairness and consistency across the board.
Why These Changes Matter
These reforms are part of a broader effort to strengthen Australia’s financial system by:
- Enhancing market integrity and investor confidence
- Reducing opportunities for regulatory arbitrage
- Aligning Australia’s disclosure standards with global best practices
Next Steps for Compliance Teams
The bill is currently under parliamentary review. Stakeholders-including listed entities, institutional investors, and legal advisors, should:
- Monitor its progress closely
- Assess potential impacts on disclosure obligations
- Prepare for compliance updates and system changes
Stay Ahead of Global Disclosure Requirements
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Learn more about our Shareholder Disclosure Solutions and download the brochure here: Explore Solutions.
Ready to Stay Ahead of Disclosure Reform?
Don’t wait for regulatory change to catch you off guard. Contact our shareholder disclosure experts today to learn how Funds-Axis can help your firm navigate the complexities of shareholder disclosure and short selling regulations.
Source: Australian Parliament Bill Digest – Treasury Laws Amendment Bill 2025
