Australia's federal government has launched a Financial Innovation Strategy, unveiled in Melbourne by Assistant Treasurer and Minister for Financial Services Dr Daniel Mulino. Industry body FinTech Australia has welcomed the plan, describing it as a national agenda for the financial system that spans regulatory testing, payments, digital assets, and data sharing.
Strategy responds to sandbox review
The strategy forms part of the government's response to an independent review of the Enhanced Regulatory Sandbox, led by Maha El Dimachki. According to FinTech Australia, the initiatives include changes to the regulatory sandbox framework, further work on Consumer Data Right reforms, and progress on digital assets and payments licensing. The plan also includes early-stage work on thematic sandboxes for areas such as AI-enabled financial services and digital financial market infrastructure.
Additional measures cover options for taxpayers to share Australian Taxation Office-held tax data through the Consumer Data Right, consultation on a new strategic plan for the payments system, and the establishment of a Financial Innovation Committee. The committee is intended to bring together government, regulators, and industry participants.
Industry reaction
FinTech Australia Chair Sarah Gorman said the sector's objectives aligned with broader economic and policy goals, noting that the announcement responded to a changing global landscape and aimed to remove barriers to further progress. The strategy was launched at the Intersekt fintech festival, which Gorman said reflected the industry's role in shaping the reform agenda.
In addition, FinTech Australia Chief Executive Officer Rehan D'Almeida said the review by El Dimachki had made a case for a broader national strategy and clearer pathways from testing to market, adding that the commitment to modernise the sandbox framework was a notable element of the plan. He said the proposed Financial Innovation Committee could help identify regulatory barriers early and coordinate reform efforts across government.
Focus shifts to implementation
D'Almeida said attention would now turn to delivery, including legislation, regulatory guidance, and practical pathways allowing new products and services to move from testing to market. He said the government needed to follow through with timely legislation, proportionate regulation, and programmes enabling both startups and established firms to test, commercialise, and scale services.
Furthermore, D'Almeida said the fintech sector contributed close to USD 9.9 billion directly to Australia's GDP and accounted for more than 50.000 jobs nationally, figures he said reflected a decade of sector development. He said future progress would depend on collaboration between government, banks, financial institutions, and technology providers, beginning with pilot programmes and practical use cases.
FinTech Australia said it looks forward to working with the government and regulators to implement the strategy, with the industry body positioning the plan as a benchmark for measuring progress across government, regulators, and industry.
