Treasury has released updated draft amendments to the Competition and Consumer (Consumer Data Right) Rules 2020 to expand the Consumer Data Right (CDR) to the non‑bank lending sector and narrow the scope of CDR data for the banking sector.

The updated draft rules include changes to the criteria that determine whether a non-bank lending data holder is required to implement CDR data sharing :

• a monetary limb of the proposed threshold of a total value of resident loans and finance leases
  greater than $1 billion and include related entities of a non-bank lender as part of this test;
• a customer number limb of the proposed threshold of more than 1,000 customers and provide mechanisms for compliance monitoring;
• clarification that CDR data sharing obligations would also apply to managers of loans (also
  known as servicer entities) that provide credit on behalf of a non-bank lender;
• clarification that data holders with related entities or in white labelling arrangements may
  discharge each other’s obligations;
• clarification that a non-bank lending data holder, which does not meet the threshold, may
  choose to join the CDR by notifying the Australian Competition and Consumer Commission.

The updated draft rules narrow the range of products for which CDR data sharing would be
compulsory for banking data holders, and non-bank lending data holders that meet the threshold.

In the draft amendments, CDR data sharing would be voluntary in relation to:

• asset finance (except for standard auto finance)
  • consumer leases
  • foreign currency accounts
  • margin loans
  • reverse mortgages.
• products for which a banking or non-bank lending data holder has less than 1,000 eligible CDR consumers.

A bank or non-bank lending data holder would not be required to share consumer data if the data was
in relation to a transaction that occurred more than 2 years before the time of the request.

Product data sharing obligations would apply from 13 July 2026, followed by consumer data sharing
obligations in four phases from 9 November 2026 until 13 September 2027 beginning with the largest
non-bank lenders and non-complex data requests.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.