Customer-owned banks have welcomed the Government’s focus on productivity and its commitment to enhancing the Consumer Data Right (CDR) in tonight’s Federal Budget.
“As Australians struggle with the rising cost of living, improving productivity is key to keeping living standards up and wages growing,” said Customer Owned Banking Association (COBA) CEO Michael Lawrence.
As part of the suite of productivity reforms, the Government has signalled its intent to modernise and simplify financial sector regulation. These changes aim to reduce unnecessary disclosure requirements and streamline regulatory frameworks specifically for small and medium-sized banks.
“Reducing red tape will enable customer-owned banks do what they do best – put the customers and communities they serve first, deliver competitive rates and market-leading services, and on the bigger picture, provide much needed choice for Australian consumers,” Mr Lawrence said.
The Federal Budget also includes a commitment to extend the operation of the CDR. Notably, the Government will explore allowing taxpayers to share certain ATO-held data through the system, a move COBA has advocated for.
“Customer-owned banks have always supported the intent of the CDR to increase competition and to deliver better outcomes for customers, and we have been engaging with the government and regulators to shape solutions that reduce participant costs while increasing value for consumers,” Mr. Lawrence said.
“Including government data in the CDR will lead to more secure outcomes for consumers and banks and ultimately drive uptake and provide more choice for customers.”
As noted by the Treasurer in his budget speech, Treasury is now forecasting inflation to peak around 5 per cent in the middle of the year because of the conflict in the Middle East.
“We acknowledge that Australians will continue to face cost-of-living pressures, but customer-owned banks are ready to support their customers and communities. If you are facing difficulties, please reach out to your mutual bank or credit union as soon as possible.”
Collectively, the mutual banking and credit union sector serves more than 5.4 million Australians.
ENDS
For further information or to arrange interviews, please contact Mira Palomaki on 0459 954 035 media@coba.asn.au
The Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies. For almost 180 years our sector has put customers first, returning profits to more than 5 million Australians who put their trust in customer-owned banks.