CDR design – complete documentation (December 2018)
On 20 July 2017, the Treasurer the Hon Scott Morrison MP commissioned the Review into Open Banking in Australia (the Review), chaired by Mr Scott Farrell, to recommend the most appropriate model for Open Banking in Australia.
Since then, the Government has decided to legislate a Consumer Data Right to give Australians greater control over their data, empowering customers to choose to share their data with trusted recipients only for the purposes that they have authorised. The Right will be implemented initially in the banking (Open Banking), energy, and telecommunications sectors, and then rolled out economy-wide on a sector-by-sector basis. The Treasurer will be leading the development of the Consumer Data Right, with the design of the broader Right informed by the recommendations of the Review.
Before making final decisions on implementation, the Government released the Report of the Review into Open Banking in Australia on 9 February 2018 for public comment on the Review’s recommendations. The Government received and considered detailed comments from 74 submissions, 67 of which were publicly released and are now available on the Treasury website.
Government Response to Review into Open Banking
On 9 May 2018, the Government agreed to the recommendations of the Review, both for the framework of the overarching Consumer Data Right and for the application of the right to Open Banking, with a phased implementation from July 2019. The Government had decided to phase in Open Banking with all major banks making data available on credit and debit card, deposit and transaction accounts by 1 July 2019 and mortgages by 1 February 2020. Data on all products recommended by the Review will be available by 1 July 2020. All remaining banks will be required to implement Open Banking with a 12-month delay on timelines compared to the major banks. The Australian Competition and Consumer Commission (ACCC) will be empowered to adjust timeframes if necessary. To ensure the long term success of the regime, an amended phased implementation timeline has been adopted and detailed in the table below.
|Financial System Inquiry recommendation 19: Data access and use finds that the Government should review the costs and benefits of increasing access to and improving the use of data, taking into account community concerns about appropriate privacy protections.||7 December 2014|
|Competition Policy Review recommendation 21: Informed Choice finds that consumers should have access to information in an efficient format to improve informed consumer choice||31 May 2015|
|Government supports recommendation 19 of the Financial System Inquiry and recommendation 21 of the Competition Policy Review and tasks the Productivity Commission with reviewing options to improve accessibility to data.||20 October 2015 and 24 November 2015|
|Productivity Commission Data Availability and Use Inquiry recommends a Comprehensive Data Right||8 May 2017|
|Independent Review into the Future Security of the National Electricity Market – Blueprint for the Future recommendation 6.3 the COAG Energy Council should facilitate measures to remove complexities and improve consumers’ access to, and rights to share, their energy data.||9 June 2017|
|Treasurer commissions Review into Open Banking in Australia||20 July 2017|
|Government announces the Consumer Data Right in response to the Productivity Commission’s Data Availability and Use Inquiry||26 November 2017|
|The Final Report of the Review into Open Banking in Australia makes 50 recommendations on the regulatory framework for the Consumer Data Right, and how to implement it in the banking sector.||9 February 2018|
|COAG opens consultations on Facilitating Access to Consumer Energy Data||1 March 2018|
|Government responds to the Productivity Commission Data Availability and Use Inquiry||1 May 2018|
|Government agrees to the recommendations of the Open Banking Review. Timeline for implementation of the Consumer Data Right in the banking sector is announced.||9 May 2018|
|COAG agrees to progress consumer access to energy data through Consumer Data Right mechanisms. The ACCC tasked with returning to COAG in November 2018 with a timeline for implementation of the Consumer Data Right in the energy sector.||13 August 2018|
|Government consults on Treasury Laws Amendment (Consumer Data Right) Bill 2018 (first round)||15 August 2018 – 7 September 2018|
|ACCC consults on Consumer Data Right Rules Framework for the banking sector||12 September 2018 – 12 October 2018|
|Data61 consults on Open Banking data standards||Ongoing|
|Government consults on Treasury Laws Amendment (Consumer Data Right) Bill 2018 (second round) and designation instrument for Open Banking||24 September 2018 – 12 October 2018|
|The regulatory package of the Treasury Laws Amendment (Consumer Data Right) Bill 2018, the Rules decision paper, and a further draft of the Standards is made publicly available||20 December 2018|
|Big Four Banks: Access to product data for credit and debit cards, deposit accounts and transaction accounts. Other banks are able to make this information available if they wish.||1 July 2019|
|ACCC opens registration of interests for Data Recipient Accreditation||1 July 2019|
|Big Four Banks: Beta testing of consumer, account and transaction data access information systems, including extended consumer testing.||From July 2019|
|Big Four Banks: Access to consumer, account and transaction data for credit and debit cards, deposit accounts, and transaction accounts.||No later than February 2020|
|Big Four Banks: Access to product data for mortgages
Big Four Banks: Access to consumer, account and transaction data for mortgage accounts
|Big Four Banks: Access to product data for personal loan and other accounts.
Big Four Banks: Access to consumer, account and transaction data for personal loan and other accounts.
|Other Banks: Access to product, account and transaction data for credit and debit cards, deposit accounts, and transaction accounts.||July 2020|
|Other Banks: Access to product, account and transaction data for mortgage products||February 2021|
|Other Banks: Access to product, account and transaction data for personal loan and other accounts||July 2021|
For further queries or comments on either the Consumer Data Right or Open Banking, please contact firstname.lastname@example.org.
- Treasury Laws Amendment (Consumer Data Right) 2018 Bill
- Review into Open Banking in Australian
- Announcement of the Review into Open Banking in Australia
- The Government’s Response to the Productivity Commission Data Availability and Use Inquiry
- ACCC – Consumer Data Right
- Data61 – Consumer Data Standards
- Reforms to sharing and release of public sector data