Bill Shorten (Maribyrnong, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

The National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Bill increases protections for consumers by banning over-limit fees, by making payment allocations fair and by banning unsolicited credit limit increase offers. Whilst I understand the spirit of the member for Melbourne's amendments, the government has strong advice that the amendments pose a serious exposure to taxpayers. As I am sure the member for Melbourne is aware, our Constitution prohibits the compulsory acquisition of rights other than on just terms. As lenders have accrued rights invested in existing credit card contracts, any changes to those rights may be considered a breach of that clause of the Constitution. Such a breach could result in taxpayers being required to compensate lenders in huge amounts, which I am sure is not the intention of the member for Melbourne. The government is seeking to ensure that taxpayers are not exposed to this risk. That means that we cannot support the member for Melbourne's amendment.

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