APRA and ASIC Told to Back Growth — Does That Help Novated Lease Customers?
The Albanese Government has reset expectations for APRA and ASIC to prioritise growth and cut red tape. Here's what it could mean for novated leasing. Read on.
On 15 July 2026, Treasurer Jim Chalmers released new Statements of Expectations for both the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). According to the Treasury Ministers release [Source 1], the core shift is a greater emphasis on promoting growth — directing both regulators to help unlock productivity and investment, while still protecting consumers and maintaining market integrity.
In plain terms: the government is telling its two most powerful financial watchdogs to ease up on the handbrake without letting go of consumer protections. That's a meaningful signal for any business operating under an Australian Credit Licence — including novated lease providers like millarX.
What this means for novated lease customers
If ASIC and APRA follow through on these expectations, the practical effect for consumers could be a more competitive, accessible lending and finance market. Novated leasing sits within the consumer credit and salary packaging ecosystem — and regulatory friction has historically added cost and complexity to the process.
A lighter-touch regulatory posture could encourage more lenders and funders to participate in the novated lease market, which tends to drive better rates and product choice for PAYG employees. That said, the Statement of Expectations is a direction, not a guarantee — how ASIC and APRA operationalise this guidance will matter far more than the announcement itself. We'll be watching closely.
For EV-focused novated leases specifically, any reduction in financing friction is worth noting. The FBT exemption for eligible battery electric vehicles remains intact, and easier access to finance only strengthens the case for going electric through salary packaging.
Common questions
Does this change the FBT exemption for electric vehicles?
No. This announcement is about regulator priorities, not tax law. The EV FBT exemption is set by separate legislation and is unaffected by these Statements of Expectations.
Will novated lease rates automatically get cheaper because of this?
Not automatically, and not immediately. The announcement signals a policy direction for regulators. Any improvement in rates or product access would flow through gradually as lenders respond to a changed regulatory environment.
What is a Statement of Expectations?
It's a formal letter from the responsible Minister to a regulator setting out the government's priorities and expectations for how that regulator exercises its powers. It doesn't override legislation but it does influence regulator behaviour in practice.
Is millarX affected by ASIC oversight?
Yes. millarX holds Australian Credit Licence 569484 and operates under ASIC's regulatory framework. We're also AFCA-registered, which means customers have access to independent dispute resolution.
Should I wait to take out a novated lease to see if conditions improve?
There's no reliable way to time regulatory change, and the existing tax benefits available to PAYG employees — including the EV FBT exemption — are available right now. Waiting on a maybe rarely beats acting on a definite.