Banking royal commission reform deferred

The Morrison government has announced a six-month deferral on the implementation of reforms proposed in response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

According to Treasurer Josh Frydenberg, the reforms have been delayed as a result of the “significant impacts of the coronavirus” and would enable the financial services industry to “focus their efforts on planning for the recovery” and “supporting their customers and their staff during this unprecedented time”.

Under the updated timetable, measures that the government had initially planned to introduce into Parliament by 30 June 2020 will be pushed back to December 2020, while measures originally scheduled for introduction by December 2020 will be pushed back to 30 June 2021.

In addition, commencement dates contained in royal commission-related exposure draft legislation issued prior to the pandemic will also be deferred by six months.

“This announcement today balances the need to implement the recommendations of the royal commission with the need to ensure our financial institutions are in a position to devote their resources to responding to the significant challenges posed by the coronavirus,” Mr Frydenberg said.

“The changes will also provide certainty and clarity to all stakeholders about the government’s commitment to implementing the recommendations arising out of the royal commission.”

[Related: Treasurer puts $4bn price tag on lockdown measures per week]