Policy Update — October 2025 #1

Treasury CDR consultation

Treasury is consulting on two proposed reforms to the Consumer Data Right (CDR):

1. A third-party consent model; and

2. A de minimis exemption, which would permit 55 banks and credit unions to opt out of participating in the CDR.

FinTech Australia is committed to supporting a robust, healthy and successful CDR. A key part of the CDR's value proposition is that it is a comprehensive, one-stop-shop for consumer data. We are therefore very concerned by the de minimis proposal and will be making these concerns known to Treasury.

FinTech Australia will be making a submission to Treasury and we are seeking your feedback on both proposals. 

You can get involved by registering to attend our member call at 12pm (AEDT) on Thursday, 9 October or contacting our Policy Team.

DFAT Southeast Asian free trade agreements consultation

The Department of Foreign Affairs and Trade is consulting on how free trade agreements with Southeast Asian countries may be modernised. This includes dealing with new and emerging trade issues, such as those relating to the digital economy.

FinTech Australia is considering making a submission. Please contact our Policy Team if you wish to provide feedback.

OTHER NEWS

• Treasury has released a report finding that artificial intelligence is governed by the Australian Consumer Law and it is not necessary to amend this law to cover goods and services provided through AI programs.

• ASIC has indicated that it expects lenders to “continue to focus on improving hardship support for customers in financial distress”.

• ASIC has granted a no action position for small banks to reduce the frequency of internal dispute resolution (IDR) data reporting from every 6 months to every 12 months.

• ASIC has announced that following consultation, it will publish firm-level IDR data but not Reportable Situations data.

• APRA has called for superannuation trustees keeping member contributions in platform products to do more to protect members’ money.

• The RBA has released its Financial Stability Review, which presents an economy-wide picture of the key financial risks to Australia.

• AUSTRAC has launched a campaign to raise awareness about significant changes to AML/CTF laws. These changes will expand the regime to new sectors and change the obligations of firms who already have reporting obligations.

• APRA has released its annual report for 2024-25.

WE ARE WORKING ON SUBMISSIONS TO THESE CONSULTATIONS

1. Treasury's CDR consultation (here and here);

2. Treasury's exposure draft on digital asset & tokenised custody platforms licensing; and

3. ASIC's regulatory simplification project.

WE RECENTLY MADE SUBMISSIONS TO THESE CONSULTATIONS

1. Department of Industry, Science and Resources issues papers connected to the Strategic Examination of Research and Development (public release pending);

2. RBA Consultation – Merchant Card Payment Costs and Surcharging (with the assistance of our policy partner, K&L Gates);

3. Productivity Commission - Harnessing data and digital technology (with the assistance of our policy partner, Ashurst);

4. Cyber Security Strategy – Horizon 2 Policy Discussion Paper; and

5. Treasury's Compensation Scheme of Last Resort special levy consultation.

See other FinTech Australia submissions on our website.

Members interested in contributing any of the submissions should reach out to our Policy Team.

FinTech Australia regularly makes submissions to consultations across a wide range of policy and regulatory issues. Communications about how to get involved in these processes are distributed to our Policy Working Group membership. If you would like to be added to a distribution list for this, please contact our Policy Team.