Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Mandatory Comprehensive Credit Reporting

Aust Gov
16th July 2018

Independent Review – Department of the Treasury

On 28 March 2018 the Government introduced the National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Bill 2018 to establish a mandatory comprehensive credit reporting (CCR) regime to apply from 1 July 2018.

Under the mandatory regime, large authorised deposit-taking institutions (ADIs) must provide comprehensive credit information on consumer credit accounts to credit reporting bodies. There is provision to extend the regime to other credit providers in the future.

Since March 2014, the Privacy Act 1988 has allowed credit providers and credit reporting bodies to use and disclose ‘comprehensive credit information’ about a consumer on a voluntary basis. CCR is expected to let credit providers better establish a consumer’s credit worthiness and lead to a more competitive and efficient credit market. Due to limited voluntary participation by the large ADIs CCR has remained below a critical mass that would achieve the desired market benefits.

The Data Availability and Use Inquiry Report of the Productivity Commission has been certified by the Treasury as meeting the requirements of a regulation impact statement. The OBPR does not assess independent reviews.

The Treasury estimates the average annual regulatory cost at $8.2 million. The OBPR has agreed to the estimate.

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