Stuart Robert (Fadden, Liberal Party, Assistant Treasurer) Share this | Hansard source

Firstly, can I thank all those members who have contributed to the debate. The bill introduces reforms to ensure a nationally consistent and uniform regime for gift cards in Australia. It introduces a minimum three-year expiry period, requires expiry data information to be displayed predominantly on the card and bans the charging of post-supply fees. The reforms put to the parliament will provide consumers with greater confidence and make gift cards fairer for all consumers.

Well-informed and confident consumers are essential to the functioning of an efficient economy. However, many consumers experience loss and disappointment from expired gift cards due to a wide variance in terms and conditions. This makes it difficult for consumers to understand their rights and obligations. It is equally important that businesses are supported in meeting their obligations and do not face any unnecessary compliance burden in complying with different laws.

The implementation of nationally consistent gift card reforms will provide greater clarity for Australian businesses. New South Wales and South Australia have moved to address the detriment consumers experience from expired gift cards, with reforms to introduce a minimum three-year expiry period for gift cards sold in their respective states. Still, there is currently no uniform regulation for minimum expiry periods and post-supply fees, with different rules applying across jurisdictions. The inconsistencies have created uncertainty for consumers and a regulatory burden for businesses.

The bill imposes a three-year minimum expiry period nationally, balancing consumer rights and business compliance. The reforms will also require the expiry date information to be prominently displayed on the card itself. Enhanced disclosure of the expiry date on gift cards will ensure consumers are able to make informed purchasing decisions by having clear access to expiry date information at the time it's needed and on the card itself. The disclosure requirements in this bill provide clarity for consumers, whilst providing businesses with the needed flexibility in the way the date is displayed.

Further, under the national regime, the charging of post-supply fees—that is, inactivity and balance-checking fees—will be prohibited. Consumers will have the full benefit of the gift cards they receive. To ensure flexibility and to provide support to industry, regulatory-making powers contained in the bill allow for certain gift cards supplied in particular circumstances to be exempt from all or some of the requirements imposed by the reform. This will allow the law to adapt to changes in tech and business activities, to ensure that essential activities involving gift cards are not unnecessarily curtailed to the detriment of businesses and consumers. The government is comprehensively considering feedback from stakeholders on the nature and scope of the exemptions and post-supply fees to ensure the business gift card activities are not curtailed.

It's an offence to contravene the reforms contained in the bill. This will act as a strong deterrent against misconduct that can have serious detriment for consumers, thereby enhancing the integrity of the regulatory regime. The penalties that can be imposed for contravening the regime are similar or consistent with the consumer protections in the ACL—the Australian Consumer Law. Compliance with these reforms will be monitored and enforced by the ACCC.

The government has consulted widely on the reforms. Consumers and business support the reforms as they improve consumer outcomes, provide consistency and are workable for business. The states and territories have also shown their support for a national regime. In August this year, Commonwealth, state and territory consumer affairs ministers formally agreed to amend the Australian Consumer Law, as required by the Intergovernmental Agreement for the Australian Consumer Law. The reform will take effect from 1 November next year, after providing industry with around a 12-month transition period to adapt to the new regime. This will ensure that these important protections for consumers are in place for the 2019 Christmas period. I commend the bill to the House.

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