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CS 28 Proposed remake of hardship withdrawals relief

simple consultation – 28

Released 27 August 2025. Comments close 31 October 2025.

ASIC has extended the relief in ASIC Corporations (Hardship Withdrawals Relief) Instrument 2020/778 (hardship relief) for a further 18 months.  

This will allow ASIC to consider and consult on whether the instrument should lapse or whether to remake the instrument with amendments. The hardship relief was due to cease on 28 August 2025.  

Before extending the relief, ASIC undertook targeted consultation with key stakeholders, and received a variety of responses.  

Although some stakeholders supported allowing the hardship relief to lapse, others considered that the relief should continue to be available to responsible entities. These views submitted that responsible entities would be more likely to rely on the relief if ASIC amended it or its conditions.  

Consequently, ASIC has decided to extend the relief to allow time to consult further on the matter. The extension will also allow responsible entities of registered managed investment schemes (schemes) to rely on the relief until 28 February 2027.  

Interested stakeholders are invited to provide feedback to ASIC via the details below. 

Providing feedback

We invite feedback on the hardship relief and its conditions. You should send your submission to rri.consultation@asic.gov.au by 5 pm AEST on Friday, 31 October 2025.

You may choose to remain anonymous or use an alias when providing feedback. However, if you do remain anonymous we will not be able to contact you to discuss your feedback should we need to.

We will not treat your feedback as confidential unless you specifically request that we treat the whole or part of it (such as any personal or financial information) as confidential. Please see our privacy policy for more information on how we handle personal information, your rights to seek access to and correct personal information, and your right to complain about breaches of privacy by ASIC.

Background  

ASIC Corporations (Hardship Withdrawals Relief) Instrument 2020/778 (ASIC Instrument 2020/778) was made to facilitate withdrawals from schemes where a responsible entity has suspended withdrawals and ceased to allow the issue of new interests in the scheme (‘frozen schemes’) for members facing financial hardship during the COVID-19 pandemic. 

ASIC Instrument 2020/778 allows responsible entities to grant hardship withdrawals to members if the member meets at least one of the hardship criteria; including urgent financial hardship, unemployment, compassionate grounds and permanent incapacity. 

A responsible entity relying on ASIC Instrument 2020/778 must comply with the requirements of the relief including notifying ASIC and scheme members of its intention to rely on the relief.  

ASIC Corporations (Amendment) Instrument 2025/548 extends the relief in ASIC Instrument 2020/778 for 18 months to the end of 28 February 2027. 

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