The Morrison Government is expanding the Consumer Data Right (CDR) to make it easier for consumers and small businesses to undertake everyday tasks such as making payments, opening and closing accounts and applying for a home loan.
The CDR expansion is part of the Government’s response to the Inquiry into Future Directions for the Consumer Data Right.
The CDR was first launched in the banking sector in July 2020 to give consumers and small businesses more power over their own data to compare and switch banking products and, in the future, telecommunications and energy providers.
Up until now, consumers and small businesses have only been able to use the CDR to instruct businesses, such as their bank, to share their data with an accredited third party in order to make better decisions regarding the products and services they purchase or to switch between providers more easily.
The expansion of the CDR means that consumers and businesses will be able to instruct third parties to initiate actions on their behalf and with their consent. For example, your energy provider automatically updating your details and setting up your new connection consistent with your preferred arrangements when you move to a new address, or a financial management app that allows you to budget and make payments across all of your bank accounts. This is akin to a digital concierge, helping to streamline everyday transactions.
The Morrison Government will continue to work with stakeholders to develop an integrated roadmap for the implementation of these CDR reforms.
The Government’s response to the Inquiry can be found on the Treasury website.