Carol Brown (Tasmania, Australian Labor Party, Assistant Minister for Infrastructure and Transport) Share this | Hansard source

Firstly, I would like to thank those senators who have contributed to the debate, and particularly my colleague Senator Ayres. Schedule 1 to the bill introduces new rules that prohibit schemes designed to avoid the application of a product intervention order made under part 7.9A of the Corporations Act 2001 in relation to a credit facility.

Safe, well-regulated consumer markets for credit products are a core element of a strong and inclusive economy. That is why the Australian government introduced reforms to the regulation of payday lending and consumer leases through the Financial Sector Reform Act 2022. These changes gave effect to the government's response to the recommendations of the 2016 Review of the small amount credit contract laws report, which included a recommendation to introduce laws to prohibit avoidance behaviour. The Financial Sector Reform Act 2022 introduced anti-avoidance provisions with respect to Australian Securities and Investments Commission—ASIC—product intervention orders made under the National Consumer Credit Protection Act 2009. This bill extends those provisions to product intervention orders made under the Corporations Act 2001. ASIC has made several product intervention orders under the Corporations Act 2001 targeting predatory lending products that cause significant consumer harm. This amendment will help ensure that a person or business cannot respond to a product intervention order by engaging in avoidance activity that is not covered by the order but results in similar detriment to consumers.

Schedule 2 delivers on the government's election commitment to better recognise the experience of long-serving financial advisers. Together with the amendments to address technical limitations in the new-entrants framework, schedule 2 resolves a number of the practical implementation issues that industry has faced. Schedule 2 supports the financial advice industry to provide Australians with high-quality financial advice.

The reforms in schedule 3 will give certainty to industry that clearing and settlement services will be provided on a fair, reasonable, transparent and non-discriminatory basis. They will also give prospective competitors in the provision of clearing and settlement services certainty about regulators' expectations of their conduct should they be granted a licence to provide these services. ASIC's power will allow it to set and enforce rules in relation to clearing and settlement services in either a monopoly or competitive environment. The Australian Competition and Consumer Commission's powers will allow it to make timely and binding resolutions to access disputes where commercial negotiations have failed. These reforms have been long recommended by the Council of Financial Regulators and endorsed by industry stakeholders. They strike the right balance between empowering regulators, giving certainty to industry, promoting competition and innovation and ensuring financial system stability.

Schedule 4 to the bill will make technical changes to improve the operation of the First Home Super Saver Scheme by affording the Commissioner of Taxation and users of the scheme greater flexibility to correct mistakes and avoid adverse financial outcomes. I commend this bill to the Senate.

Question agreed to.

Bill read a second time.