On Tuesday (14 December), the federal government announced it would be expanding the in 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, if consumers or businesses are changing energy providers, their details will be automatically updated to the new connection consistent with their preferred arrangements.
The government said it will continue to work with stakeholders to develop an integrated roadmap for the implementation of these CDR reforms.
