The Australian Government has announced an independent Review of Australia’s Credit Reporting Framework.
The review will examine the effectiveness and efficiency of the credit reporting provisions in enabling effective lending decisions by credit providers while ensuring the personal information of consumers is adequately protected.
The review will examine
- credit reporting provisions in Part IIIA of the Privacy Act with the report to be provided to the Attorney-General (s25B Privacy Act) and
- mandatory credit reporting provisions in Part 3-2CA of the Credit Act with the report to be provided to the Assistant Treasurer (s133CZL Credit Act).
With regard to credit reporting provisions in the Privacy Act, the review should consider:
- whether Part IIIA continues to meet relevant objects of the Privacy Act;
- whether the key definitions relating to credit reporting in Part II are fit for purpose;
- whether comprehensive credit reporting is achieving its policy objectives;
- whether reforms to address financial hardship have achieved their policy objectives;
- other matters addressed by Part IIIA including, but not limited to, retention periods, disclosure, integrity and complaints.
With regard to the mandatory credit reporting provisions in the Credit Act, and in particular Part 3-2CA, the review should consider:
- whether mandatory credit reporting has achieved its policy objectives, including improving overall credit provider participation in credit reporting;
- the benefits for consumers, small businesses and credit providers, from mandatory credit reporting;
- the scope of mandatory credit reporting, including the number and type of eligible licensees and the data they are required to contribute.
A report will be provided to the relevant ministers no later than 1 October 2024. The report then must be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the relevant ministers.
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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.
