The Albanese Government will reset the Consumer Data Right (CDR) to deliver better consumer outcomes.
The CDR is Australia’s consumer data-sharing system. It is designed to help consumers safely share and control their data to make more informed financial decisions.
The CDR has potential to deliver real economic transformation. But the former government’s poor execution means it costs too much for businesses to implement, so too few have taken it up.
The Government will resolve these issues to ensure Australians can unlock the value of their data.
In doing so, we will reduce friction within the CDR to improve cost effectiveness, takeup, and deliver better financial outcomes for consumers.
To build a CDR framework that better serves consumers, the Government has:
- Opened consultation on changes to consent and operational rules. The proposed changes will streamline consent for consumers, by enabling them to provide multiple consents in a single action.
- Released the Heidi Richards report, Consumer Data Right Compliance Costs Review, which found that the regulatory costs of implementing the CDR on its current track are substantial.
- Written to the Chair of the Data Standards Body to secure alignment with our direction for the CDR [PDF 105 KB].
- Signaled the intention to expand CDR to non-bank lending in early 2025, making it operational by mid-2026 to provide a sufficient transition period.
The Data Standards Body has finalised a new Standards Assessment Framework. This framework has been developed with industry and complements the Government’s direction for the CDR by prioritising the highest value use cases.
The Albanese Government is focussed on getting the existing CDR framework on more sustainable footing. After passage of the action initiation bill, the Government will not rush to declare new action types until the CDR is back on track.
The Government encourages all interested parties to make a submission in response to the consultation paper for the proposed changes to consent and operational rules, which can be found on the Treasury website.
Submissions will close on 9 September 2024.