The Albanese Government has taken another step to protect small businesses and their customers, by making important improvements to the Consumer Data Right.
Today, the Assistant Treasurer and Minister for Financial Services Stephen Jones has signed into law operational enhancements to the CDR rules which will allow businesses to more easily and safely share their CDR data with third parties, such as bookkeepers and software providers.
The CDR channel provides a far safer alternative to the widespread practise known as ‘screen scraping’, in which consumers and businesses share private data, such as log in details, directly with third parties. The independent statutory review into CDR recommended that screen scraping be banned where CDR is a viable alternative, and later this year the Government will be consulting with stakeholders to determine options to regulate screen scraping.
Creating a safer channel for small businesses’ data also protects their customers, and this builds on the work the Government is doing to fight scams and fraud, including the establishment of a new and world-leading National Anti-Scams Centre.
In addition to the safety improvements, these changes will support business consumers to access better advice more efficiently, promote flexibility, and free up businesses to invest in innovation and improve product offerings to consumers.
The new rules will come into effect on 1 December 2023.