Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)General outline and financial impact
Consumer Data Right
The Consumer Data Right (CDR) provides individuals and businesses with a right to efficiently and conveniently access specified data in relation to them held by businesses. The CDR authorises secure access to this data by trusted and accredited third parties. The CDR requires businesses to provide public access to information on specified products they have on offer. CDR is designed to give customers more control over their information leading, for example, to more choice in where they take their business, or more convenience in managing their money and services.
Date of effect: Day after Royal Assent.
Proposal announced: The Bill fully implements the National Consumer Data Right measure from the 2018-19 Budget.
Financial impact: Nil. However, additional resources are being provided to the Australian Government agencies administering the CDR and associated appointments, as set out in the 2018-19 Budget and Mid-Year Economic and Fiscal Outlook.
Human rights implications: The Bill is compatible with human rights, and to the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to 2.33.
Compliance cost impact: The measure will increase compliance costs in the banking sector and for accredited parties by an average of $86.6 million per year, and in the energy sector by an average of $9.9 million per year, on an annualised basis (with common accreditation costs not duplicated in the latter figure). The regulatory impact for other sectors, including the telecommunications sector, will be considered on a sector by sector basis both when designating those sectors and when writing rules for those sectors.
The Productivity Commission Inquiry Report into Data Availability and Use (the PC Data Report) has been certified as being informed by a process and analysis equivalent to a Regulation Impact Statement (RIS) for the purposes of the Government decision to implement a Consumer Data Right.
The PC Data Report can be found at this link:
www.pc.gov.au/inquiries/completed/data-access/report
The Review into Open Banking in Australia (the Open Banking Report) has been certified as being informed by a process and analysis equivalent to a RIS for the purpose of implementing the Consumer Data Right and the Bill.
The Open Banking Report can be found at this link:
http://treasury.gov.au/sites/default/files/2019-03/Review-into-Open-Banking-_For-web-1.pdf