Innovation in exports and the shift to digital is supported and promoted
The Government will introduce an enhanced regulatory sandbox that provides a temporary licence waiver for FinTech firms to test the viability of certain kinds of new services and related products.
Government to increase funding to FinTech and financial services regulators to empower proactive regulation and to support the adoption of RegTech solutions.
Progress to date
The Australian Government has introduced the enhanced regulatory sandbox. The sandbox allows natural persons and businesses to test certain innovative financial services or credit activities without first obtaining an Australian financial services licence or Australian credit licence. The sandbox aims to facilitate financial innovation in Australia from 1 September 2020 and supersedes the previous regulatory sandbox administered by the Australia Securities and Investments Commission. It allows testing of a broader range of financial services and credit activities for a longer duration - up to 24 months.
The enhanced regulatory sandbox began operating on 1 September 2020. By July 2021, six firms had entered the sandbox. A review of the sandbox is due to be completed as soon as practicable one year after its commencement.