Assistant Treasurer announces an independent review of Australia’s Credit Reporting Framework

Last week, Assistant Treasurer Stephen Jones announced an independent review of Australia’s Credit Reporting Framework. 

The Federal Government has recently commenced an independent review of Australia’s Credit Reporting Framework, confirmed by Assistant Treasurer Stephen Jones and Attorney-General the Hon Mark Dreyfus.  

The scope of the review will take into account the efficiency of the existing credit reporting framework, including an assessment of whether current legislation and practices around credit lending are effective and whether these practices ensure that the privacy of consumer information is protected.   

According to a joint media statement by the Assistant Treasurer and the Attorney-General, this independent review marks the “first substantial review of Australia’s credit reporting framework since 2008”.   

This review has come about due to the enactment of the National Consumer Credit Protection Amendment (Mandatory Credit Reporting and Other Measures) Act 2021, the passing of which introduced parallel requirements, triggering a mandatory review of the existing credit reporting framework.   

Enactment of the above legislation mandated the review of:  

• Credit reporting provisions in Part IIIA of the Privacy Act 1988 (the Privacy Act), with the report to be provided to the Attorney-General (s25B of the Privacy Act refers) and;  
• Mandatory credit reporting provisions in Part 3-2CA of the National Consumer Credit Protection Act 2009 (the Credit Act), with the report to be provided to the Assistant Treasurer (s133CZL of the Credit Act refers).  

Rather than conducting two separate reviews that would make the process more time-consuming and onerous, the Federal Government has chosen to undertake a combined, single review that aims to satisfy both statutory requirements stated above.   

A public consultation period is set to be announced soon, and the final report from this independent review into the efficiency and effectiveness of the existing credit reporting framework is expected to be completed and handed down by 1 October 2024.   

Former senior executive from the Australian Prudential Regulation Authority (APRA), Ms Heidi Richards, will be heading this independent review.   

The complete Terms of Reference for the review are now available on the Attorney-General Department’s website page.