On 11 April 2022, with the calling of the Federal Election, parliament was prorogued and the House of Representatives dissolved, officially ending the current session of parliament (46th parliament).

This means that Bills before parliament that have not been passed, including the following Hayne Bills, have lapsed and will need to be reintroduced in the next session of parliament in order to be passed.

• FAR Bills: The Financial Accountability Regime Bill 2021 and the Financial Sector Reform (Hayne Royal Commission Response No 3) Bill 2021 (summarised) would together have established the proposed Financial Accountability Regime (FAR) (the government's response to Hayne Recommendations 3.9, 4.12, 6.6, 6.7 and 6.8).  As at the 11 April, the Bills had not passed either House.
• CSLR Bills: Three Bills -  Financial Sector Reform (Hayne Royal Commission Response No. 3) Bill, Financial Services Compensation Scheme of Last Resort Levy Bill 2021 and Financial Services Compensation Scheme of Last Resort Levy (Collection) Bill 2021- would together have established a compensation scheme of last resort (CSLR) (Hayne Recommendation 7.1) and the proposed industry funding mechanism to fund the scheme also lapsed.  As at the 11 April, the Bills had not passed either House.

The Australian Prudential Regulation Authority (APRA) appears to be continuing with its FAR preparations.  For example, the regulator is currently consulting on plans to roll out new FAR data collections from 2023 for SFI ADIs.

Where does this leave industry?

Following the election, if the new government wishes to proceed with a Bill that has lapsed (including those above), it will need to introduce a new Bill and that Bill will need to follow the usual process for enactment.

Presumably, if there is no change in government, the Bills flagged above will be reintroduced in their current form.

Were this to occur, and assuming no change in the existing implementation timelines, it would mean that the proposed FAR would apply within a fairly short timeframe.  That is, the FAR would apply to the banking industry on 1 July 2022 or six months after Royal Assent, whichever is later and to the insurance and superannuation industries on 1 July 2023 or 18 months after Royal Assent, whichever is later. 

How likely is it that the timeline would be extended?

The Senate Committee report (summarised) into the FAR and CSLR Bills did not recommend any extension on the proposed implementation dates, despite industry feedback.  It is not clear whether this will remain the position given the delay in legislating the changes.

What if there's a change in government?

The Federal Labor party has indicated that if elected, they plan to introduce a CSLR without delay, however it is unclear what form this may take and/or whether the scope of the scheme may be extended.  Labor Senators' comments in the Senate report (summarised) into the CSLR and FAR Bills expressed support for the expansion of the proposed CSLR to include managed investment schemes.

Labor members of the Senate Committee that considered the FAR and CSLR Bills ultimately supported the passage of the legislation and made no additional comments in the report on the FAR Bills.  Federal Labor has otherwise not issued any official statement concerning the party's intentions in relation to the FAR Bills if they are elected.