Treasury Laws Amendment (Consumer Data Right)

Current status

This bill became law on Aug 26th, 2024.

Policy area

Budget, tax & economy

What does this bill do?

Australians and businesses can use the Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. to tell an accredited provider to carry out tasks like payments, account changes, switching providers and address updates on their behalf.

Why was it introduced?

The Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. let people access and share data, but left a gap: they could not use it to tell accredited providers to carry out actions like payments, switching providers or updating details. This bill expands the framework by creating action initiationThis is the new part of the Consumer Data Right that lets a customer direct someone to do things such as make a payment, switch providers, or update account details., letting ministers switch on specific actions and extending CDRThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. privacy protections to that process.

Broader context

Australia’s Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. framework, created in 2019, let consumers share their data with accredited providers but stopped short of letting those providers act on the consumer’s behalf, leaving common tasks like payments, switching and account updates outside the system. The bill was introduced in November 2022 to add that action-initiation layer and extend CDRThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. privacy safeguardsThese are the CDR privacy protections that limit how data can be used, shared, and stored, and the bill extends them to the action initiation process. to it, then after a long Senate delay it finally passed in August 2024 and became law, setting up a broader consumer-directed digital service model.

Key criticism

The main criticism was not of the goal itself but of rollout risks: critics warned the action-initiation scheme could add heavy compliance costs, expose privacy and scam vulnerabilities, and be implemented before businesses were ready. Those concerns came mainly from Coalition and Greens speakers and industry reporting, but no party represented in the debate opposed the bill outright.

Who supported it?

Stephen Jones MP introduced this bill. It passed on the voices.

Introduced in House 30 Nov 2022
Passed House 15 Feb 2023
Passed Senate 15 Aug 2024
Became law 26 Aug 2024

Did it become law?

Yes

Became law 26 Aug 2024

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

635 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. Australians and businesses can use the Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. to tell an accredited provider to carry out tasks like payments, account changes, switching providers and address updates on their behalf.

  2. The minister can switch these new powers on action by action and choose which existing data holders, such as banks or energy retailers, must receive and carry out CDRThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. instructions.

  3. Other organisations can apply to join as voluntary action service providers, with rules able to set approval tests, conditions, risk tiers, fees and what each approval level allows them to do.

  4. Action service providers must carry out a valid CDRThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. instruction when they normally offer that kind of service, and the law largely leaves the actual service delivery to existing sector rules.

  5. Privacy protections are extended so the data used and shared when these instructions are prepared and sent is still covered by the Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. privacy safeguardsThese are the CDR privacy protections that limit how data can be used, shared, and stored, and the bill extends them to the action initiation process..

Show source excerpts
  1. The CDR framework was created to provide individuals and businesses with a right to access and share their data in sectors that have been designated by the Minister. This Bill expands on this by introducing ‘action initiation’ reforms, which would enable CDR consumers to direct accredited persons to instruct on actions on their behalf using the CDR framework. These actions could include making a payment, opening and closing an account, switching providers, and updating personal details (such as an address) across providers.
    Treasury Laws Amendment (Consumer Data Right) explanatory memorandum
  2. The Minister can declare (by legislative instrument) types of actions that can be initiated under the CDR, and the data holders that are to be action service providers.
    Treasury Laws Amendment (Consumer Data Right) explanatory memorandum
  3. (1) Without limiting paragraph 56BB(da), the consumer data rules may include the following rules:
    Treasury Laws Amendment (Consumer Data Right) as-passed bill text
  4. A service provider given an instruction under the rules to perform an action must do so if the provider ordinarily performs actions of that type in the course of its business. Otherwise, this Part contains little regulation of the action layer (that is, regulating how service providers perform actions they are instructed to do). For example, the provider can perform the action, and charge any fees, in the way it ordinarily does.
    Treasury Laws Amendment (Consumer Data Right) as-passed bill text
  5. The privacy safeguards are extended for action initiation so that they apply to CDR data that flows in the instruction layer from an accredited action initiator to an action service provider.
    Treasury Laws Amendment (Consumer Data Right) explanatory memorandum

Broader context for this bill

Australia’s Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. framework, created in 2019, let consumers share their data with accredited providers but stopped short of letting those providers act on the consumer’s behalf, leaving common tasks like payments, switching and account updates outside the system. The bill was introduced in November 2022 to add that action-initiation layer and extend CDRThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. privacy safeguardsThese are the CDR privacy protections that limit how data can be used, shared, and stored, and the bill extends them to the action initiation process. to it, then after a long Senate delay it finally passed in August 2024 and became law, setting up a broader consumer-directed digital service model.

  1. 2019

    Treasury Laws Amendment (Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them.) Act 2019 creates the data-sharing framework

    The existing law gave consumers a way to access and share their data with trusted parties, but it did not let those parties carry out actions for them.

    Hansard ↗
  2. 30 Nov 2022

    Government introduces action-initiation expansion

    The bill was introduced to let the Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. support authorised actions in the digital economy rather than only data sharing.

    Hansard ↗
  3. 15 Feb 2023

    House passes the bill

    The House completed its consideration of the bill, sending the proposed expansion of the CDRThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. framework to the Senate.

    Parliamentary timeline ↗
  4. 15 Aug 2024

    Senate debate resumes after the bill sits for more than a year

    Senators noted that the bill had been before the Senate without debate for well over a year, reflecting a prolonged pause before the reform could proceed.

    Hansard ↗
  5. 15 Aug 2024

    Parliament passes the bill

    The Senate passed the bill and Parliament completed passage, clearing the way for the new action-initiation powers after the House had passed it in February 2023.

    Parliamentary timeline ↗
  6. 26 Aug 2024

    Royal AssentThis is the final step that turns a bill passed by Parliament into an Act of law. makes the reform law

    Royal AssentThis is the final step that turns a bill passed by Parliament into an Act of law. turned the bill into an Act, formally extending the Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. beyond data sharing into consumer-authorised action initiationThis is the new part of the Consumer Data Right that lets a customer direct someone to do things such as make a payment, switch providers, or update account details..

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 30 Nov 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 30 Nov 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Economics Legislation Committee; Committee report (03/05/2023) review 09 Feb 2023

Referred to Committee (09/02/2023): Senate Economics Legislation Committee; Committee report (03/05/2023)

Referred to committee

APH bill page notes
Second reading debate 14 Feb 2023

The bill reached this recorded parliamentary step.

Sent to Federation Chamber for debate 14 Feb 2023

The bill reached this recorded parliamentary step.

Referred to Federation Chamber

Federation Chamber debate 14 Feb 2023

The bill reached this recorded parliamentary step.

Second reading debate

House second reading agreed 14 Feb 2023

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Returned from Federation Chamber 15 Feb 2023

The bill reached this recorded parliamentary step.

Reported from Federation Chamber

House third reading agreed 15 Feb 2023

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 06 Mar 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 06 Mar 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 15 Aug 2024

The bill reached this recorded parliamentary step.

Senate second reading agreed 15 Aug 2024

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 15 Aug 2024

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 15 Aug 2024

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 26 Aug 2024

The Governor-General gave Royal AssentThis is the final step that turns a bill passed by Parliament into an Act of law., turning the bill into an Act.

The main case against this bill

The main criticism was not of the goal itself but of rollout risks: critics warned the action-initiation scheme could add heavy compliance costs, expose privacy and scam vulnerabilities, and be implemented before businesses were ready. Those concerns came mainly from Coalition and Greens speakers and industry reporting, but no party represented in the debate opposed the bill outright.

Criticism was mostly about safeguards, cost and timing rather than rejecting consumer data rights.

Costly and hard to implement

Critics warned the reform could be rushed into operation before banks, smaller lenders and other businesses were ready, creating high compliance costs and practical difficulties in meeting the rules.

Raised by Coalition speakers including Paul Fletcher, Angus Taylor and Perin Davey; banking industry concerns were also reported publicly. Source ↗

Privacy, scams and security safeguards may be too weak

Some supporters said consumers should not be asked to trust a larger action-initiation system unless privacy, cybersecurity, scam prevention and protections against misuse were strengthened first.

Raised by Greens speakers including Nick McKim, Larissa Waters and Peter Whish-Wilson, along with other MPs calling for stronger consumer protections. Source ↗

The broader Consumer Data Right scheme may be too complex for low take-up

Public reporting and industry analysis argued the wider Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. had already become complicated and expensive while attracting low usage, raising doubts about adding new action powers without simplification.

Raised by Australian Banking Association concerns reported in the Australian Financial Review. Source ↗

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

15 Feb 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

15 Aug 2024

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.

Senate

Carried

Senate McKim amendment agreed on voices

The Senate JournalThis is the official record of Senate proceedings, including whether an amendment or motion was agreed to. records the amendment outcome as carried on voices, with no counted division recorded.

Carried on voices

The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Stephen Jones

Australian Labor Party • MP 30 Nov 2022

Stephen Jones supports the bill and says it will expand the consumer data rightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. to let people securely direct actions like switching providers, updating details, and making payments, which he argues will improve competition and consumer control while preserving privacy and security.

Read in Hansard ↗
Lead supporting voice Supports

Aaron Violi

Liberal Party • MP 14 Feb 2023

Aaron Violi supports the bill because he says it will help consumers act on their data, improve productivity and make it easier to switch providers or update details.

Read in Hansard ↗
Lead non-major voice Supports

Zali Steggall

Independent • MP 14 Feb 2023

Steggall supports the bill, saying it gives consumers more control over their data and can help them get a better deal.

Read in Hansard ↗
Lead voice Supports

Paul Fletcher

Liberal Party • MP 14 Feb 2023

Fletcher says the coalition supports the bill because it expands the consumer data rightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. so consumers can securely direct actions like payments and account changes, but he argues it should be referred to committee so the reforms are properly tested before rollout.

Read in Hansard ↗

All speeches by bloc

Labor

2 speakers · 3 contributions · 2 support

  1. Don Farrell Farrell supports the bill, saying it will expand the Consumer Data RightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. to let consumers and small businesses securely authorise actions like payments, account changes and service applications.
    “This Bill will amend the Competition and Consumer Act 2010 to expand the Consumer Data Right to enable action initiation, a functionality which will empower consumers to authorise, manage and facilitate actions securely in the digital economy.”

    Australian Labor Party • Senator • 06 Mar 2023

    Read the full speech in Hansard ↗

Coalition

5 speakers · 5 support

  1. Angus Taylor Taylor says the coalition will support the bill because it extends the consumer data rightThe Consumer Data Right is the legal framework that lets a customer share their data, and in this bill it is expanded so an authorised person can also carry out actions for them. and gives consumers more control over their data, but he warns the government must avoid rushing implementation and imposing unreasonable costs on business, especially small business.
    “Whilst the coalition will be supporting this bill, we do have some concerns about the pace of reform, the imposts on business and the consultation with business. We are concerned that the government isn't listening to Australian businesses about the challenges that may stem from this reform, and we're concerned that the government may risk this substantive and important reform by failing to make sure that it's paced the right way, that it avoids unreasonable imposts on business that put at risk the reform being done well and that risk the social licence of the reform, because that's hugely important in the consumer data right. We strongly encourage the government to work with small business and consumers. Bring them along in the process. Don't leave them behind, because this has a lot of good things it can deliver for Australia—important reforms for Australia. What we don't need is a botched implementation.”

    Liberal Party • MP • 14 Feb 2023

    Read the full speech in Hansard ↗
  2. Dean Smith Dean Smith says the coalition will support the bill because it should improve productivity, competition and consumer data rights, especially in banking and for small business.
    “The coalition is pleased to be supporting this bill today. But it would be remiss of me not to draw the Senate's attention to an important issue, and that is delay and obfuscation. This bill spent just three months in the House of Representatives—just three months; November, December, January, February. Over the Christmas period, it passed efficiently, prudently, through the House of Representatives. So industry stakeholders are right to ask: why is it that it has taken 17 months for this bill to come to a vote in the Senate today? Seventeen months!”

    Liberal Party • Senator • 15 Aug 2024

    Read the full speech in Hansard ↗
  3. Perin Davey Davey says the Nationals will support the bill, but argues the government has wasted 17 months, consulted poorly and risked imposing unfair costs on smaller customer-owned banks and small businesses.
    “Expanding the consumer data right needs to be done correctly and it needs to achieve a reduction in red tape and to support deregulation, which was the intent of the bill when the coalition commenced this process. But we will be supporting this bill today.”

    National Party • Senator • 15 Aug 2024

    Read the full speech in Hansard ↗

Greens

3 speakers · 3 support

  1. Nick McKim Nick McKim says the Greens will support the bill because it will help consumers switch more easily between essential service providers and improve competition.
    “We will be supporting this bill today because it creates a framework to support consumers to access a range of outcomes, including to switch more easily between utility, insurance, telco and banking providers. There are some problems with it that I outlined in general terms earlier, but this bill does constitute a small but important step to make it easier for Australians to get a better deal for essential services and to improve competition in a range of sectors. But we do urge Labor to prioritise fixing the issues in the Consumer Data Right framework, with particular regard to consumer safety and security and to ensure that small banks and mutuals are not unduly impacted.”

    Australian Greens • Senator • 15 Aug 2024

    Read the full speech in Hansard ↗
  2. Larissa Waters Waters says the Greens will support the bill because it gives consumers a better framework to access and switch services more easily, but she says Labor has left it too long and must fix privacy, scam, security and small-bank concerns.
    “So I'm glad that the bill is on today, and we will be supporting it because it creates a framework for consumers to access a range of outcomes, including to switch more easily between utility, insurance, telco and banking providers.”

    Australian Greens • Senator • 15 Aug 2024

    Read the full speech in Hansard ↗
  3. Peter Whish-Wilson Whish-Wilson says the Greens support the bill because it will make it easier for consumers to move their bank data and switch financial institutions, but he wants stronger safeguards for privacy, scams and financial abuse.
    “That's why this bill has been sitting on the Notice Paperas has been pointed out by a number of speakers—for nearly 17 months. And that's why it's taken seven years to get legislation that can actually allow bank account portability and make it easier for Australian consumers of financial services to move. Of course, the banks see customer information as their intellectual property. They have the arrogance to assume that they own this information about Australian citizens and customers—but of course they don't. Essentially what this data right framework will allow is the transfer of information between financial institutions. I would like to put on record, as I know my colleagues have done today, that we need greater safeguards to protect consumer privacy in the consumer data right framework, to prevent scams and financial abuse, and that concerns have been raised around the sharing of information.”

    Australian Greens • Senator • 15 Aug 2024

    Read the full speech in Hansard ↗

One Nation

1 speaker · 1 support

  1. Malcolm Roberts Roberts says One Nation supports the bill and argues it should have passed earlier because it provides protections that the Digital ID Bill lacked.
    “It's about time the Treasury Laws Amendment (Consumer Data Right) Bill 2022 came up for a vote. I wonder why it is that bills which take away rights, like the Digital ID Bill, are guillotined, debate denied, committee processes rigged to produce the desired outcome and then rushed through the Senate in the blink of an eye, yet bills that give people rights are held back for years. One Nation supports this bill, which should have been passed at the same time as the Digital ID Bill—a piece of legislation that relied on the protections provided in the consumer data right bill.”

    Pauline Hanson's One Nation Party • Senator • 15 Aug 2024

    Read the full speech in Hansard ↗

Minor parties and independents

1 speaker · 1 support

Full record

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