Announcement date
30/11/2022
Link to announcement
https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/expanding-consumer-data-right-non-bank-lenders
Problem being addressed
The Consumer Data Right (CDR) is designed to allow Australians to safely and securely unlock the value of information held about them by businesses. CDR gives consumers the ability to opt in and determine when and how they share their data with other businesses and professionals of their choosing. CDR is an interoperable online system governed by rules, standards and protocols to protect privacy and data security and allow different IT systems to communicate seamlessly. Businesses who want to receive and use a consumer's information must be accredited. Accreditation demonstrates businesses in the CDR system can meet strict legal, technical and compliance obligations. There are penalties that apply to any participant who does not meet the obligations set or who mishandles a consumer's data.
Proposal
Designation of the non-bank lending sector to be subject to the consumer data right.
Assessed Impact Analysis outcome
Independent review
Assessment comments
Consistent with the Government's Regulation Impact Statement (RIS) requirements, the Consumer Data Right Non-Bank Lending Sectoral Assessment: Consultation Paper (March 2022) and the Consumer Data Right Non-Bank Lending Sectoral Assessment: Final Report (August 2022) have been certified by the Department of the Treasury as meeting the requirements of a RIS. The Office of Impact Analysis (OIA) does not assess the quality of independent reviews and IA-like documents used in lieu of an Impact Analysis but does assess whether the options analysed in the independent review are relevant to the regulatory proposal. The OIA assessed that the options analysed in the independent review are sufficiently relevant to the regulatory proposal.
Regulatory burden
The Department of the Treasury estimates an increase in regulatory costs of $15.7 - $18.6 million per year, averaged over ten years.