Labor must not abandon the consumer data right

Wednesday, 7 August 2024

The Albanese Labor Government’s silence and inaction on the Consumer Data Right (CDR) is holding back this crucial cost of living relief and competition initiative.

After fourteen months of neglecting a key part of his portfolio, Assistant Treasurer Stephen Jones will finally break his silence at an event on Friday billed as his “first public remarks on CDR since June 2023”.

If the Assistant Treasurer rolls out more of the same platitudes about doing “the work to get it right” but again refuses to progress any of that work, the Albanese Government has effectively abandoned the CDR and failed the consumers and small businesses who stand to benefit from it.


Banks and energy providers have made a significant investment in the CDR – an investment which has the potential to set Australia’s digital economy up for the next century. However, this investment must be coupled with strong leadership from the Government and the support of the responsible minister.

Instead, the Albanese Government’s record on the CDR is a litany of stalled or abandoned projects led by a minister who is simply not interested:

â€ĒExpansions to insurance, superannuation and telecommunications have been abandoned.
â€ĒThe Government’s own “action initiation” legislation to expand its functionality has languished in Parliament since its introduction in November 2022.
â€ĒThe non-bank lending sector has been left in regulatory limbo with rules to expand CDR to include them stalled since August 2023.
â€ĒA promised education campaign to help consumers to easily identify CDR‑enabled providers, products and services never eventuated.
â€ĒThe most recent consultations on improving the CDR and phasing out screen scraping have not progressed since August 2023.
â€ĒNo new consultations on improving the CDR since August 2023.

In his June 2023 speech, the Assistant Treasurer said “right now, you can use your CDR data to get a better deal on your credit card, find a cheaper mortgage, and understand your energy usage” and that “an extensive architecture has been built, designed to expand and scale out.”

Fully aware of the benefits CDR can provide, the Labor Government’s failure to prioritise, support and scale it is compounding Australia’s cost of living crisis and sticky, home grown inflation.

Shadow Treasurer Angus Taylor said this is just another example that Labor’s competition agenda is more about spin than substance.

“With quarterly inflation rising again, it is baffling that the Labor Government isn’t using every lever it can to bring cost of living down.

“The Coalition implemented the CDR and since coming into Government, Labor has completely botched the roll out of a program its own Ministers’ described as a ‘game changer.’
“Australian consumers are paying the price for Labor’s lack of leadership.”

Shadow Assistant Treasurer and Shadow Minister for Financial Services said Labor’s inaction on CDR is yet another broken promise.

“Over the last two years the Albanese Government has pumped the brakes on its rollout and stalled its progress without explanation, creating regulatory uncertainty across the financial services sector.

“There is no leadership or plan from the Albanese Government and the ecosystem of innovative businesses supporting the CDR is suffering as a result.”

Shadow Assistant Minister for Treasury, Charities, and Competition, Senator Dean Smith said the Government’s delay in enacting CDR Legislation is denying Australian consumers the benefits of enhanced competition in the banking and energy sectors.

“The Coalition has forced the CDR back on the legislative agenda, and swift passage of the legislation next week will be a step towards improved competition outcomes for the economy at a time where Australia’s competition landscape is languishing.

“Australian consumers are paying a high price for Labor’s inaction and their delay is further proof that this Government fails to understand the levers that will drive improved productivity, bring down cost of living pressures, and improve living standards.”