September 2025

Australia Substantial Shareholdings

Information

Treasury proposed on 4 September 2025 a Bill (Strengthening Financial Systems and Other Measures) to amend Chapters 6 and 6C of the Corporations Act, enhancing the substantial holding and tracing notice regimes. Some of the notable laws proposed:

• Holders must now disclose derivative-based interests to the market, treating them the same as any other part of a substantial holding: Physically Settleable Derivatives, Non-Physically Settleable Derivatives, Offsetting Short Positions, and Cash-Settled Instruments
• ASIC’s authority expands to Disclosure requirements are imposed on entities incorporated or formed outside Australia but listed on an Australian financial market
• Doubles the maximum penalties for all existing offenses in Chapter 6C, such as 4 years’ imprisonment for the fault-based offence of failing to give the information required in a substantial holding notice

Our Thoughts

Although this is a proposed bill, it is not made into a law yet. However, it shows that the Australian government is leaning towards greater transparency and increased penalties.

The above content is purely for information and does not purport to offer legal or professional counsel.