Assistant Treasurer and Minister for Financial Services Stephen Jones has suggested CDR be designated to non-bank lenders as it has been used in the banking market for some time.
However, the IPA in a submission made in conjunction with the Chartered Accountants Australia and New Zealand, and CPA Australia said while they support designating the non-bank lending sector in due course, they do not consider such a designation should be made until significant shortcomings in the implementation to date are addressed.
In the submission, the IPA said the shortcomings include firstly the costs of compliance that act as a barrier to participation for smaller, less resourced data holders.
It also said that part 4 of the CDR Rules moves control of a consumer’s data from the data holder to accredited data recipients (ADRs) as they may, but are not required to, respond to consumer requests.
And finally, the unintended blocks to participation created by the definition of CDR data, unique to the Australian jurisdiction, which captures, not only the CDR data disclosed by a data holder to an accredited data recipient (ADR), but also any data derived solely or partially from the initial data received by the ADR.
Mr Jones said CDR can boost competition and deliver consumers more choices to help them manage the family budget and will help drive down household bills to combat inflation.
“CDR is already delivering gains for consumers in the banking market,” he said.
“Now the government is inviting public comment on draft rules to extend this important consumer power to telecommunications.
“The CDR allows consumers to reclaim control of the data their service providers hold about them by sharing it with third parties that offer innovative products and services.
“Consumers’ CDR data can be used to find them better deals, simplify budgeting and accounting, and reduce paperwork.”
Mr Jones said the government also has plans to extend CDR to the non‑bank lending market, giving consumers a way to take more control over their biggest bills: the mortgage, the phone bill and the power bill.
“The government encourages anyone with an interest in using technology to manage family finances to read and respond to its draft rules,” he said.
Interested parties can view the draft rules on the Treasury website.
