The Banking Amendment Regulations 2011 (No. 1) set a new reduced limit under the Financial Claims Scheme of $250,000 per depositor, per ADI to be effective from 1 February 2012. (Background).

The Regulations also provide a grandfathering period for existing term deposits. Term depositors who entered into a term deposit before 11 September 2011, would be covered by the existing limit of $1million until 31 December 2012, or until the expiry of the term deposit, whichever is sooner.