Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

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.

The Consumer Data Right (or CDR) is a pioneering economic reform that gives consumers the ability to safely share the data Australian businesses hold about them for their own benefit.

Because Australia's CDR will be rolled out across the economy—with banking almost complete, energy being rolled out now and others to follow—it is the first and most ambitious of its kind in the world.

The CDR places consumers at the centre of a data-sharing framework that protects their privacy and gives them the ability to opt in and determine when and how they share their data with other businesses and professionals of their choosing.

Consumers can use their data for things like switching service providers, taking out a loan, applying for a new mortgage or using budgeting apps to help manage finances. Consumers can better manage cost-of-living pressures, saving time and effort in a safe, regulated environment.

Importantly, data security and privacy are at the very core of the CDR, with strict protocols, rules and other requirements to protect consumers and their data.

Privacy and security considerations are key to ensuring that information within the CDR framework is held, used and disclosed securely, allowing confidence in the framework to grow.

In time, as the CDR is introduced to other datasets and sectors across the economy, consumers will gain even more capacity to extract value from their data.

This Bill delivers the power of action initiation to the CDR. That means consumers and small businesses will be able to securely instruct third parties (accredited action initiators) to carry out everyday tasks on their behalf. When combined with data sharing, actions like opening and closing accounts, making payments and applying for services will be made easier and more personalised.

The Government anticipates that these changes will support a range of innovative business models, driving the development of new CDR-powered products and services. This will offer entirely new ways of doing things, boost competition and reduce the time pressures, cost and complexity experienced by consumers and small businesses when carrying out everyday tasks.

The Bill gives effect to the key recommendation of the 'Inquiry into the Future Directions for the Consumer Data Right' to move ahead to enable action initiation.

This Bill gives the Minister the ability to declare actions that could be initiated using the CDR, just as the Minister can already designate new sectors for data-sharing.

Before making such a declaration, public consultation and analysis would need to occur and the Minister would need to have regard to a range of matters including consumer interests, market efficiency, competition, innovation and the public interest.

This process would enable the Minister to require existing data holders (such as banks) to become action service providers in the CDR, meaning they would have to perform actions in accordance with valid instructions received from third party accredited action initiators as if they came directly from the consumer. There would also be flexibility for other organisations to apply so they can participate voluntarily in CDR action initiation with appropriate safeguards.

Accredited action initiators would need to meet strict accreditation requirements set by the rules. They would also be required to act efficiently, honestly and fairly when initiating actions.

Consumers will continue to be squarely in control. That is, an accredited action initiator could only initiate an action on the consumer's behalf with the consent of that consumer.

The Bill will also extend the existing privacy safeguards so that the privacy of CDR consumers continues to be appropriately protected.

The Bill will primarily regulate the 'instruction layer', that is, the communication channel between the accredited action initiator and the action service provider. It does not seek to regulate the performance of the action itself. Existing sectoral laws, like those in the banking sector, would continue to govern how an action, such as opening a bank account, must be performed.

While the Bill does not seek to reach into the 'action layer', or the performance of the action itself, it would prevent action service providers from discriminating against a valid action request that came through the CDR.

Importantly, it will not prevent an action service provider from applying security or other checks, or refusing to perform an action, provided this is consistent with existing practices.

Enabling action initiation in the CDR is part of the Government's commitment to expand the CDR across the economy and grow the opportunities for consumers to safely make use of their own data for their benefit.

Full details of the measure are contained in the Explanatory Memorandum.