Coalition forces crucial cost of living measures back onto the agenda

The Coalition has successfully forced the “game changer” Consumer Data Right (CDR) policy back onto the legislative agenda, after the Albanese Labor Government left the reforms languishing since its introduction in 2022.

After more than fourteen months dormant in the Senate without debate, despite tri-partisan support for its passage, a Coalition motion has guaranteed that the CDR, a crucial cost of living relief measure, will now be considered when the Parliament returns in August.

Passage of the Treasury Laws Amendment (Consumer Data Right) Bill 2022 would facilitate “action initiation” under the Consumer Data Right. The reforms would allow consumers in energy and banking to direct accredited persons to securely instruct on actions on their behalf, such as making a payment, opening and closing an account, switching providers and updating personal details.

With inflation continuing to rise and the cost of living and doing business getting worse, this “action initiation” reform should be a top priority for the Labor Government. Promoting consumer choice and greater competition is essential to bringing down prices and the CDR represents a new, secure channel for consumers to control their data and switch to a better deal.

At Senate Estimates last month in June, Senator Katy Gallagher committed to dealing with the Bill in the June sitting block. Treasury officials also provided evidence that to their knowledge “there are currently no plans to change the bill as it is”. However, the Coalition’s motion was ultimately required to force the Bill back onto the agenda.

In its bi-partisan recommendation for the Bill’s passage, the Senate Economics Legislation Committee said: “…this framework legislation will place consumers at the centre of an innovative data-sharing system that protects their privacy.”
Since coming into power, the Albanese Labor Government has treated this key competition initiative with contempt by pausing expansions of the CDR into insurance, superannuation and telecommunications, and indefinitely delaying expansion into the non-bank lending sector.

BACKGROUND
The Treasury Laws Amendment (Consumer Data Right) Bill 2022 was first introduced into Parliament in November 2022 and received a bipartisan recommendation for its passage from the Senate Economics Legislation Committee in March 2023.
At Senate Estimates in August, Senator Katy Gallagher committed to dealing with the Bill in the June sitting block. The Government did not bring the Bill on for debate or pass the Bill.

Action initiation was originally recommended in Dr Scott Farrell’s 2020 Inquiry into Future Directions for the Consumer Data Right.

A recent Deloitte report, commissioned by the Commonwealth Bank of Australia, found the Australian economy would be $16.7 billion larger by 2043 if the Consumer Data Right expands beyond banking and energy sectors, with approximately 46,800 additional jobs created from the combined effect of greater competition and innovation.