Consumer Data Right Expansion Promises Better Deals
The Albanese Government is uplifting the Consumer Data Right (CDR) by expanding the system to non‑bank lending providers to deliver a better deal for more Australians.
After extensive consultation and undertaking a strategic assessment of the way forward for CDR, the Albanese Government announced the CDR reset in August 2024. The intent of this reset was to address concerns around high compliance costs and the limited uptake of use cases by consumers.
Through this reset, the Government is focusing on making improvements to the current framework to reduce unnecessary costs and enable high‑value use cases. The Albanese Government:
Today we announce another next step in the CDR reset, the expansion of CDR into non‑bank lending, commencing from mid‑2026.
Today’s announced changes:
These changes ensure the CDR targets priority use cases, such as consumer finance and lending, without imposing unnecessary costs and regulatory burden on smaller lenders.
The CDR enables Australian households and businesses to access their data held by their bank or electricity retailer through innovative new products that allows them to make informed choices, switch providers, and more easily apply for products and services.
By unlocking the value of a consumer’s data, the CDR has the potential to be a transformational piece of economic reform for Australian consumers, delivering more choice and access to the best possible deals on a range of financial products tailored to a consumer’s individual need.
The Government’s changes will open opportunities for consumers to use the CDR to find the best deals on more lending products. It will also address the cost burden of the CDR on the financial sector.
The Government is working closely with stakeholders and will continue to expand the CDR in ways that foster innovation, whilst being purposeful and focussed on consumer benefit.
The Albanese Government is getting on with the job of resetting of the CDR to ensure it delivers to its potential as an innovative piece of our economic infrastructure.
https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/consumer-data-right-expansion-deliver-better-deal