Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – RBA figures confirm east coast mortgage stress

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 16 September 2024 RBA FIGURES CONFIRM EAST COAST MORTGAGE STRESS Ballooning property prices, combined with 13 interest rate rises since Federal Labor came to power, have resulted in a significant increase in mortgage holders falling behind on their repayments. Senator Dean Smith recently obtained exclusive mortgage arrears figures from the Reserve Bank of Australia. They reveal the extent to which Australians across the nation are struggling through the Albanese Government cost of living crisis – with more and more households unable to cover their expenses. Australia’s most populous states, New South Wales and Victoria, are among the worst affected. In fact, Victoria tops the list of Australian states with the biggest share of borrowers in 90 days arrears at 0.67%, which is an 81% increase in the last year. New South Wales was the third highest at 0.57%, increasing 83% in 12 months – an ever faster rate than Victoria. The complete figures for all Australian states are: Share of borrowers in 90-day arrears (%)   NSW   VIC   QLD  WA    SA   TAS 2023 0.31  0.37  0.29  0.43  0.33  0.29 2024 0.57  0.67  0.47  0.62  0.54  0.50 Source: RBA   New South Wales and Victoria are home to eight of the top localities in Australia with the highest level of mortgage stress, including Tullamarine (17.9%) and Merrylands/Guildford (15.9%). These widespread levels of financial pressure are also underlined by the latest housing affordability figures from the Real Estate Institute of Australia, which reveal that about half the average family income in the two states is needed to meet loan repayments. The impact is compounded by the fact that 63% of fixed loans in New South Wales, and 64% in Victoria, are set to expire this year. It means borrowers that took advantage of low interest rates during the pandemic, with no anticipation of the interest rate increases triggered by Labor’s economic mismanagement, are now on the cusp of a significant financial burden. Add to this marked housing price inflation, where the median price of a house in Sydney has jumped to $1.4 million, while in Melbourne it is nearly $1 million. These factors are combining to create a perfect storm for homeowners – and potential buyers. It is the reality for Australians under the Albanese Government. Quotes attributable to Senator Dean Smith: “This data from the RBA shows that a bad situation is getting even worse on Labor’s watch.” “There are thousands of homeowners who cannot keep up with higher mortgage repayments on top of other cost of living expenses.” “The numbers in Victoria are especially concerning, but it’s the rate of increase in both Victoria and New South Wales – more than 80% in year – that indicates how serious this is getting and how quickly its occurring.” This is the direct result of the Albanese Government’s failure to curb homegrown inflation, leaving the RBA to do the heavy lifting, as well as the stagnating economic growth, housing shortage and other policy failures we’ve come to expect from Labor.” ENDS

JMR – Howarth & Smith – Albanese Government Refuses To Ditch Red Tape For Local Accountants And Bookkeepers

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The Hon Luke Howarth MP Shadow Assistant Treasurer Shadow Minister for Financial Services Senator Dean Smith Shadow Assistant Minister for Competition, Charities, and Treasury MEDIA RELEASE 11 September 2024 ALBANESE GOVERNMENT REFUSES TO DITCH RED TAPE FOR LOCAL ACCOUNTANTS AND BOOKKEEPERS The Albanese Labor Government has teamed up with the Greens and Senator David Pocock to block the Coalition’s attempt to throw out onerous new regulations for local accountants, bookkeepers and tax agents. Eight Senate crossbenchers yesterday joined the Coalition to vote in support of a disallowance motion which would have nullified the Tax Agent Services (Code of Professional Conduct) Determination 2024. On the floor of the Senate, the Government capitulated and finally admitted the regulation is defective and significant changes are required. It remains to be seen whether the Assistant Treasurer will deliver on these piecemeal changes or backflip yet again. With these embarrassing, last minute concessions it is now another deal with the Greens that has blown up in the Government’s face. The Government’s approach to consultation, communication and stakeholder management on these regulations has been bizarre and disrespectful. Nine weeks after making this law, the Assistant Treasurer finally started consulting directly with industry stakeholders just hours before it was set to be disallowed. This desperate attempt to salvage the regulations came after Stephen Jones had repeatedly told tax practitioners their serious concerns were unfounded, and the new regulation was ‘modest’. It’s too little, too late and a Coalition Government would entirely reverse these regulations and unwind this attack from Labor and the Greens. Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth said this is bad government and the grassroots advocacy campaign from local tax practitioners has been effective and should not stop. “These are small and family businesses who are some of the most trusted members of our community and they should be treated with respect. The Albanese Government has left them distraught and wondering whether they should stay in the profession. 72,000 tax practitioners, many small or individual practices, have been burdened with bad regulation in response to the sins of a few partners at PWC. A local BAS agent in North Lakes is very different to an international tax partner at PWC. These new regulations are unnecessary and will drive up costs for individuals and small businesses who rely on and trust tax professionals to help manage their financial affairs.” Shadow Assistant Minister for Competition, Charities, and Treasury Senator Dean Smith said the Government’s eleventh-hour concessions were a sign of a desperate Government operating in crisis mode. “With the support of eight Senate crossbenchers and the entire tax practitioner community, we have sent a clear message to the Government about these far-reaching and poorly drafted regulations. The ten leading professional associations have come together to repeatedly support the disallowance motion and secure multiple backdowns and concessions from the Government. The Government’s chaotic process has been worst-practice consultation, communication and policymaking and the thousands of local accountants and bookkeepers who have been left reeling deserve better.” Background The Tax Agent Services (Code of Professional Conduct) Determination 2024 (the Determination) is a disallowable instrument made on 2 July 2024 which imposes new obligations on registered tax practitioners. The Determination has received significant criticism from the peak professional accounting and tax practitioner bodies and has been subject of a campaign from accountants, bookkeepers and tax agents to have it withdrawn or disallowed. Chartered Accountants Australia and New Zealand, CPA Australia, Institute of Public Accountants, The Tax Institute, Australian Bookkeepers Association, Institute of Certified Bookkeepers, Institute of Financial Professionals Australia, Financial Advice Association of Australia, NTAA PLUS and SMSF Association (collectively the Joint Bodies) wrote to the Assistant Treasurer on 15 July 2024 to express strong concerns about the construct and implications of the provisions of the determination. The Joint Bodies again wrote to the Assistant Treasurer on 9 August 2024 to advise that proposed changes to the start date had not alleviated their concerns with the Determination and the significant compliance burdens and uncertainties on small tax professional businesses. These stakeholders continued to call for it to be withdrawn or disallowed and took out a full-page advertisement condemning the regulations on 5 September and wrote the Prime Minister. A vote on the disallowance motion, moved by Senator Dean Smith on 10 September, was negatived in a tied 31-31 vote in the Senate. Crossbenchers David Pocock and Lidia Thorpe, Labor and the Greens voted against disallowance. In a one-minute statement on the disallowance motion, the Government admitted further changes and public consultation would be required and sought to delay it. The new legislative power used by the Assistant Treasurer to make the Determination was part of Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 which was passed in late 2023 as part of a deal with the Greens to ensure the passage of Labor’s franking credit reforms. Senator Barbara Pocock announced at the time that the Greens had secured the relevant amendments, and the Determination would follow. ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Coalition to pursue Labor in the Senate over Census chaos

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 6 September 2024 COALITION TO PURSUE LABOR IN THE SENATE OVER CENSUS CHAOS The Albanese Government’s chaotic mismanagement regarding questions in the upcoming Census, and the internal divisions it is exposing, risk undermining public confidence in the entire Census process. Labor’s unpredictability is also generating needless anxiety for many Australians. Shadow Assistant Minister for Competition, Charities and Treasury Senator Dean Smith intends next week to call on the Government to release all correspondence and other documents between the Australian Bureau of Statistics, responsible Minister Andrew Leigh, the Treasurer and the Prime Minister in relation to Census preparations. In the meantime, Senator Smith has written to ABS Chief Statistician Dr Gruen requesting a briefing from officials that is yet to be confirmed. Major questions remain unanswered, including: What is the status of the testing of new and changed questions on religious affiliation? What is the status of other new questions that were being considered, among them Aboriginal and Torres Strait Islander cultural identity and a question regarding Australians relocating over 12 months – which is important in the context of housing supply? When will details of questions regarding gender, sexual orientation and variations of sex characteristics be released? Is Labor considering reversing the ABS decision in the phase one consultation process not to progress with questions on ethnic identity, additional measure of disability, shared care of children, dwelling occupancy status, household energy use and the impact of impact of natural disasters? Recent events also raise serious concerns about the appropriateness of the Prime Minister, or anybody in the Albanese Government, intervening in the work of an independent statutory authority. Andrew Leigh has failed to provide an explanation for what is occurring and there has been no official correspondence, or even a media statement, justifying Labor’s actions. The Coalition will now use the full powers of the Senate to hold the Government to account over its bungling of this major aspect of Australian life. Quotes attributable to Senator Dean Smith, Shadow Assistant Minister for Competition, Charities and Treasury: “Labor’s confused and nontransparent approach to the 2026 Census has turned up more questions than answers.” “Prime Minister Albanese and his Government have jeopardised public confidence in the Census process and left Australians in the dark about how important questions will be handled.” “Labor’s mismanagement has also shown a lack of sensitivity to those awaiting the status of questions relevant to them – among them Indigenous Australians, members of the LGBTQI community and grandparent carers.” “Any Labor intervention in the work of an independent statutory authority is unacceptable and the Coalition will pursue it in the Senate until it takes its obligations seriously.” ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Too little, too late – Labor’s competition attempts fall short

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 27 August 2024 TOO LITTLE, TOO LATE – LABOR’S COMPETITION ATTEMPTS FALL SHORT Australians are paying a high price for the Albanese Government’s inability to deliver genuine competition reform. The Aviation White Paper and National Competition Policy Consultation Paper, both released yesterday, are powerful examples of how little Labor has achieved in this policy area. Consumers have waited a long time for both desperately needed airline traveller protections and the “revitalising” of now inadequate competition policy. That wait has been in vain, with the Albanese Government again leaving them disappointed – and vulnerable. This maintains Treasurer Jim Chalmers and Assistant Competition Minister Andrew Leigh’s track record of missed opportunities when they are most critical. The more Australians need something, the less attention Labor gives it. Aviation White Paper Despite making more than 50 recommendations, most notably establishing a taxpayer-funded ombudsman to hear complaints, the White Paper does not provide any practical improvement to the situation facing airline consumers. These include high ticket prices, flight cancellations, delays, lost baggage and other consequences of Australia’s duopolistic air industry – none of which are specifically addressed. Worst of all, no provision is made for the compensation of affected consumers. As has already been pointed out, this is a feature of the Pay on Delay Bill, introduced into the Senate on behalf of the Coalition by Senator Bridget McKenzie and Senator Dean Smith. The only meaningful initiative listed is the ongoing ACCC monitoring of the airline sector, although the White Paper fails to mention that Labor only reinstated this Coalition policy because it was forced to by another Private Senator’s Bill from Senators McKenzie and Smith. National Competition Policy Consultation Paper In December 2023, Australian, State and Territory Treasurers “agreed to revitalise national competition policy and committed to developing an agenda for long‑term pro‑competitive reforms” through the Council of Federal Financial Relations. Precious little has happened since. The fact that the consultation period only began this week – 8 months later – is unacceptable considering how pressing competition reform has now become. But, instead of making this a priority issue, Labor and Assistant Minister Leigh have dragged their heels, falling back on their tired routine of endless press conferences and consultation phases The clear takeaway is that no progress will be made on competition matters before the next election. Quotes attributable to Senator Dean Smith, Shadow Assistant Minister for Competition, Charities and Treasury: “Two years of Labor have been a disaster for competition reform, with key opportunities to improve lost – deliberately or otherwise – and Australian consumers left to pay for the fallout.” “Whether it be the Aviation White Paper or the National Competition Policy, Jim Chalmers and Andrew Leigh have kicked the can down the road so many times that nothing can now be achieved before the election.” “The Coalition has called again and again for the prioritisation of competition policy development, but it has been another victim of Labor’s skewed priorities.” “It’s made even worse in the aviation sector, which is impacting Australians so badly, because the Coalition has presented Labor with clear policy on how to protect and compensate consumers.” “Labor has chosen to ignore that policy – and Australians are suffering for it.” ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Senate passes Bill to combat organ trafficking and harvesting – without Government’s support

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 21 August 2024 SENATE PASSES BILL TO COMBAT ORGAN TRAFFICKING AND HARVESTING – WITHOUT GOVERNMENT’S SUPPORT The Senate has passed the Migration Amendment (Overseas Organ Transplant Disclosure and Other Measures) Bill 2023, marking a significant step forward in Australia’s efforts to curtail the international crime of organ trafficking and harvesting. The bill was first introduced to the Senate in June 2023 with the aim of implementing some of the recommendations from the 2018 report of the Joint Standing Committee on Foreign Affairs, Defence and Trade ‘Compassion, not Commerce’ inquiry organ trafficking and harvesting. The report included a recommendation to “monitor the transplantation practices of other countries with regard to consistency with human rights obligations, including with regard to the use of the organs of executed prisoners”. This bill amends the Migration Act 1958 requiring travellers into Australia to disclose on the incoming passenger card whether they have received an organ transplant overseas in the last five years. If they respond affirmatively, persons arriving into Australia will be asked to disclose which country, state,  locality they received the transplant, and the name of the medical facility the operation took place in. This data will be collected and published in an annual report tabled in Parliament. The information will be of great assistance to human rights organisations, medical institutions, and the Australian Government in analysing data on trends in overseas transplants, and helping to corroborate existing evidence of organ trafficking or harvesting activities abroad. It will also serve to raise awareness of the sensitivity and risks associated with transplant tourism, encouraging Australian citizens and residents to consider whether any plans to receive an overseas operation might carry the risks associated with an unethical or unsafe organ transplant. The bill compliments similar initiatives being considered in the United Kingdom and Canadian Parliaments, bringing Australia in line with international efforts. Disappointingly, the Labor Government opposed the Bill in the Senate. Despite this, the bill passed the Senate with the support of crossbench Senators and without a division. Labor’s human rights record was diminished by their decision not to support this bill. Comments attributable to Senator Dean Smith: “This is the most significant step made in decades in emboldening Australia’s efforts to combat the growing trade in illegal and unethical organ harvesting and trafficking.” “This is an overdue and crucial first step in developing a stronger response from the Australian Government towards these abhorrent practices. “This simple and modest initiative will have an oversized impact in uncovering the scope of this complex and opaque international crime.” “Many Australians will be surprised and confused to hear that the Labor Government was a bystander to this improvement in our human rights arsenal.” ENDS

Taylor, Howarth and Smith – JMR – The Coalition Powers Up The Consumer Data Right

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The Hon Angus Taylor MP Shadow Treasurer The Hon Luke Howarth MP Shadow Assistant Treasurer Shadow Minister for Financial Services Senator Dean Smith Shadow Assistant Minister for Competition, Charities and Treasury MEDIA RELEASE Thursday, 15 August 2024 THE COALITION POWERS-UP THE CONSUMER DATA RIGHT In the Senate today, the Coalition ensured the passage of key legislation to expand the functionality of the Consumer Data Right (CDR), an important cost of living and competition initiative. During the first week back from Parliament’s winter recess, the only legislation passed has been because of a Coalition motion forcing it. It took 20 long months of languishing in Parliament and the Coalition’s intervention to pass the Bill, leaving many to wonder whether the Assistant Treasurer had forgotten about his own legislation. Even when Labor’s own legislation has unanimous support, they are still unable to pass it. The Assistant Treasurer is a single-issue minister, with little interest in Australia’s digital economy or financial services sector. Stephen Jones’ myopic approach leaves colleagues to make their own duplicative announcements, like “One-Click Energy Switch”, which is a use case CDR action initiation was built for. Labor’s neglect of the CDR has left the banks, energy providers and the broader CDR ecosystem in regulatory limbo. On 3 July 2024, Senator Gallagher said regarding the Bill: “I’m not sure if there’s going to be an amendment moved… I’ve been advised there is some further work to do, and that makes debating this not possible… that work will need to be done, and it will need to be brought back after the winter recess.” On the same day, Treasurer Jim Chalmers said: “We will work methodically through those sorts of issues in a legislative sense, but also working with the various stakeholders to see if we can get it right.” No further work was done. No amendment was moved. Stakeholders were left in the dark. Labor’s management of its legislation is a farce, and it has taken the Coalition’s intervention to mop up their mess. The Albanese Government’s silence and mismanagement of the CDR has caused uncertainty about its future. The Coalition supports a proportionate regulatory approach when the Government considers its next steps, particularly for smaller and regional banks, to ensure the CDR’s future rollout can continue with certainty and in a sustainable way. The Coalition remains open to sensible changes that could be brought forward to the Consumer Data Right to ensure appropriate phasing and proportionality, with certainty and accountability about forward work timelines. This is why the Coalition has called for and supported the development of a Financial Services Regulatory Grid – another promised initiative which has stalled without explanation under Labor. ENDS. Background: The Consumer Data Right gives consumers and small businesses more control over their data by enabling them to access and share their data with accredited third parties to access better deals on everyday products and services. The Consumer Data Right has already been rolled out to banking and energy, with non-bank lending to follow as the third sector.

Taylor, Howarth & Smith – Jmr – The Coalition Will Stop Labor’s Attacks On Local Accountants And Bookkeepers

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The Hon Angus Taylor MP Shadow Treasurer The Hon Luke Howarth MP Shadow Assistant Treasurer Shadow Minister for Financial Services Senator Dean Smith Shadow Assistant Minister for Competition, Charities, and Treasury MEDIA RELEASE 13 August 2024 THE COALITION WILL STOP LABOR’S ATTACKS ON LOCAL ACCOUNTANTS AND BOOKKEEPERS The Coalition will seek to disallow the Albanese Labor Government’s latest move to burden tax practitioners with unnecessary and unrealistic red tape. The new obligations are far-reaching, poorly drafted and potentially impossible for thousands of small tax practitioners to comply with. This will drive up costs for Australians and small businesses who rely on and trust tax professionals to help manage their financial affairs. These clients are individuals and small businesses like young professionals, retirees and tradies – the impacts could span millions of Australians, during a cost-of-living crisis. Labor’s obsession with piling on red tape creates a compliance burden that is ultimately passed on through additional costs to clients. These impacts are why adequate consultation, good communication and quantification of regulatory impact are so important. The Albanese Government has failed all three tests with this chaotic process and left thousands of local accountants and bookkeepers reeling. Labor’s “Tax Agent Services (Code of Professional Conduct) Determination 2024” is beset with a barrage of problems: Minimal or no consultation. Unrealistic commencement timeframes and no regulator guidance. Retrospectivity, with a requirement to consider matters as far back as 1 July 2022. A disproportionate impact on small practices and sole practitioners. A new requirement to report to clients on any matter that could significantly influence a decision of a client to engage with them, which could include health and mental health issues. A new requirement to report to clients about ongoing investigations before there has been an outcome. Inconsistent obligations, including a duty to ‘dob in’ clients despite an existing obligation not to disclose confidential client information without the client’s permission. This disastrous process is a sign of things to come under a Labor-Greens minority government. The Assistant Treasurer’s promises to back financial services professionals fell apart as soon as he cut a deal with the Greens to legislate Labor’s broken promise to raise taxes from franking credits. Shadow Treasurer Angus Taylor said only a Coalition Government will put an end to Labor’s war on financial services professionals. “A strong economy with thriving small businesses, informed consumers, higher home ownership, and better retirement outcomes require strong advice networks. Yet Labor is layering red tape upon red tape on finance professionals that just drive up costs for consumers. “This isn’t the right approach in a cost-of-living and cost-of-doing-business crisis. Local accountants and bookkeepers have been blindsided by this new red tape yet Labor has refused to listen to community feedback. “Australian families and small businesses are paying the price of Labor’s failure to manage the economy and failure to listen.” Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth said these attacks from the Assistant Treasurer are nothing new. “Rushed and botched regulation with a lack of meaningful consultation has come to be expected from this Government. “Financial advisers learned this after the Assistant Treasurer’s failure to live up to his promises on advice reform. Now the Assistant Treasurer isn’t just failing to cut red tape, he is creating even more of it for tax practitioners. “This pile of new red tape is unwarranted – local accountants and bookkeepers are already highly regulated and some of the most trusted professionals in our community.” Shadow Assistant Minister for Competition, Charities, and Treasury Senator Dean Smith said smaller tax practitioners’ need for regulatory certainty, proportionality and guidance have been completely ignored by the Government. “The Assistant Treasurer rushed this regulation through without warning on the last sitting day before Parliament’s six-week winter recess, leaving Australia’s 71,000 registered tax practitioners to play catch-up.” “Now they have assessed the potential burden, they are rightly calling for it to be withdrawn or disallowed.” “The Coalition calls on all crossbench Senators to support the disallowance and reverse the regulatory burden and uncertainties that will fall on accountants, bookkeepers, and other financial professionals at a time when they can least afford it.” Background The Tax Agent Services (Code of Professional Conduct) Determination 2024 (the Determination) is a disallowable instrument made on 2 July 2024 which imposes new obligations on registered tax practitioners. The Determination has received significant criticism from the peak professional accounting and tax practitioner bodies and has been subject of a campaign from accountants, bookkeepers and tax agents to have it withdrawn or disallowed. Chartered Accountants Australia and New Zealand, CPA Australia, Institute of Public Accountants, The Tax Institute, Australian Bookkeepers Association, Institute of Certified Bookkeepers, Institute of Financial Professionals Australia, Financial Advice Association of Australia, NTAA PLUS and SMSF Association (collectively the Joint Bodies) wrote to the Assistant Treasurer on 15 July 2024 to express strong concerns about the construct and implications of the provisions of the determination. In response to pressure from industry and the Coalition, the Assistant Treasurer revised the original 1 August 2024 commencement date to 1 January 2025 for firms with 101 employees or more and 1 July 2025 for firms with 100 employees or less. These. The Joint Bodies again wrote to the Assistant Treasurer on 9 August 2024 to advise that the changes to the implementation dates have not alleviated their concerns with the Determination and the significant compliance burdens and uncertainties on small tax professional businesses. These key stakeholders are still calling for it to be withdrawn or disallowed. The new legislative power used by the Assistant Treasurer to make the Determination was part of a TLAB Bill passed in late 2023 as part of a deal with the Greens. Senator Barbara Pocock announced at the time that the Greens had secured the relevant amendments, and the Determination would follow. ENDS.

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Over 1,000 Businesses Insolvent in WA’s Last Financial Year

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 9 August 2024 OVER 1,000 BUSINESSES INSOLVENT IN WA’S LAST FINANCIAL YEAR The latest figures produced by The Australian Securities and Investments Commission (ASIC) reveal that more than 1,000 businesses in WA were insolvent by the end of June 2024. According to Senator Dean Smith, the ASIC data shows that 1,079 companies during the last financial year entered insolvency:  nearly double the figures two years ago. “The cumulative impact of thirteen-interest rate rises over the past two years is now having a devastating impact on many businesses throughout Western Australia as underlined by these shocking figures.” “During the June quarter alone, there were 308 companies entering insolvency or one every seven hours.” “The ASIC figures show that during this quarter two sectors accounted for around one in three of all insolvencies in WA – Construction (20%) and Accommodation & Food (14%).” Senator Smith added that small businesses, in particular, were being hit hard by the triple whammy of rising costs due to inflation, whilst also having to service higher interest rate payments, while at the same time consumers were becoming more fragile because of the cost-of-living crisis. “Small businesses account for 97% of all businesses in Western Australia with many families operating on small margins.” “They are very sensitive to even a small cut back in consumer spending.” “The impact of the cost-of-living crisis on consumers is underlined by the collapse in household savings with the latest official figures showing the ratio of household savings is now the lowest in 16 years at just 0.9%.” “Unfortunately, many small businesses in WA are teetering on the edge of financial oblivion due to the growing cost of living crisis.” “They are at the coal face of this cost-of-living crisis and unless the crisis ends soon the number of business insolvencies in WA could explode over the coming year,” he said. “Labor’s inflation debacle has now caused a cost-of-doing-business crisis in WA.” “Anthony Albanese has failed to tackle inflation and now small-medium sized businesses are being forced to close their doors and lay off staff.” ENDS

Taylor, Howarth & Smith – JMR – Consumers Losing From Labor’s Failures on Consumer Data Right

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Friday, 9 August 2024 CONSUMERS LOSING FROM LABOR’S FAILURES ON CONSUMER DATA RIGHT The Coalition welcome the Assistant Treasurer’s rediscovery of the Consumer Data Right after two years of inaction on this crucial reform. The Consumer Data Right has the potential to be a gamechanger for consumers and competition in Australia, but it needs to be managed right. Under Labor, legislation has sat unpassed in parliament for almost two years, an awareness campaign for consumers has stalled, businesses have been left in limbo without regulatory certainty, and new policy has developed without consideration of how it would interact with a future CDR ecosystem. These failures are of Labor’s making. This is another failure from an Assistant Treasurer who has disappointed in every element of his portfolio, yet stayed in the job because of his factional allegiance to the Prime Minister. Australian consumers are the losers for Stephen Jones’ repeated failures. It is clear from the delays on the Consumer Data Right that Labor’s commitment to competition reform is more about distracting from their role in fuelling inflation than delivering for Australians. The Coalition is committed to making the Consumer Data Right work to boost competition and drive good consumer outcomes. The Coalition will closely scrutinise the next steps outlined by the government and hold Labor accountable for any further delays or cost increases of this crucial reform. The Coalition will continue to work with stakeholders across the whole CDR ecosystem to ensure the roll out is efficient, well phased, and proportionate – particularly for small, regional and rural banks and mutuals. The Coalition is committed to reversing the creeping compliance burden Labor is imposing on Australian businesses. It is essential the Financial Services Regulatory Grid be delivered as a priority, before the end of the year, to help businesses plan and hold regulators accountable for the costs they are passing on to consumers and small businesses. Shadow Treasurer Angus Taylor said this is just another example of Labor’s failed economic management. “It is clear Labor has given up leading the economic debate. Labor has let inflation run out of control and it has botched the roll out of this crucial reform for over two years in office. “This is a crucial competition reform that will deliver real benefits for consumers, but it has sat idle while Labor has spent billions of taxpayers’ money on its own priorities that are just fuelling inflation. “The Coalition is committed to delivering strong competition policy that empowers consumers and small businesses, and we will work in government to ensure the Consumer Data Right delivers on its potential.” Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth said the Assistant Treasurer provided nothing new today after 14 months of silence on the Consumer Data Right. “Regulatory uncertainty has been the hallmark of the Albanese Government’s financial services policy agenda. “Banks, energy providers, non-bank lenders and other CDR participants have faced a year of regulatory limbo waiting for the Assistant Treasurer to make up his mind. “The Government has failed to explain why it has stalled and neglected this important initiative for so long.” Shadow Assistant Minister for Competition, Charities and Treasury Senator Dean Smith said Labor’s competition agenda is now being driven by the Coalition.   “At a time when lifting productivity is critical to reversing Australia’s declining living standards, Labor’s approach has been characterised by dithering and delay.   “Labor’s go-slow approach to CDR reform has hurt the FinTech industry and disempowered consumers at a time when Australians deserve greater finance technology choices.” ENDS.

Taylor, Howarth & Smith – JMR – Labor Must Not Abandon The Consumer Data Right

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The Hon Angus Taylor MP Shadow Treasurer The Hon Luke Howarth MP Shadow Assistant Treasurer Shadow Minister for Financial Services Senator Dean Smith Shadow Assistant Minister for Treasury, Charities, and Competition MEDIA RELEASE 7 August 2024 LABOR MUST NOT ABANDON THE CONSUMER DATA RIGHT The Albanese Labor Government’s silence and inaction on the Consumer Data Right (CDR) is holding back this crucial cost of living relief and competition initiative. After fourteen months of neglecting a key part of his portfolio, Assistant Treasurer Stephen Jones will finally break his silence at an event on Friday billed as his “first public remarks on CDR since June 2023”. If the Assistant Treasurer rolls out more of the same platitudes about doing “the work to get it right” but again refuses to progress any of that work, the Albanese Government has effectively abandoned the CDR and failed the consumers and small businesses who stand to benefit from it. Banks and energy providers have made a significant investment in the CDR – an investment which has the potential to set Australia’s digital economy up for the next century. However, this investment must be coupled with strong leadership from the Government and the support of the responsible minister. Instead, the Albanese Government’s record on the CDR is a litany of stalled or abandoned projects led by a minister who is simply not interested: Expansions to insurance, superannuation and telecommunications have been abandoned. The Government’s own “action initiation” legislation to expand its functionality has languished in Parliament since its introduction in November 2022. The non-bank lending sector has been left in regulatory limbo with rules to expand CDR to include them stalled since August 2023. A promised education campaign to help consumers to easily identify CDR‑enabled providers, products and services never eventuated. The most recent consultations on improving the CDR and phasing out screen scraping have not progressed since August 2023. No new consultations on improving the CDR since August 2023. In his June 2023 speech, the Assistant Treasurer said “right now, you can use your CDR data to get a better deal on your credit card, find a cheaper mortgage, and understand your energy usage” and that “an extensive architecture has been built, designed to expand and scale out.” Fully aware of the benefits CDR can provide, the Labor Government’s failure to prioritise, support and scale it is compounding Australia’s cost of living crisis and sticky, home grown inflation. Shadow Treasurer Angus Taylor said this is just another example that Labor’s competition agenda is more about spin than substance. “With quarterly inflation rising again, it is baffling that the Labor Government isn’t using every lever it can to bring cost of living down. “The Coalition implemented the CDR and since coming into Government, Labor has completely botched the roll out of a program its own Ministers’ described as a ‘game changer.’ “Australian consumers are paying the price for Labor’s lack of leadership.” Shadow Assistant Treasurer and Shadow Minister for Financial Services said Labor’s inaction on CDR is yet another broken promise. “Over the last two years the Albanese Government has pumped the brakes on its rollout and stalled its progress without explanation, creating regulatory uncertainty across the financial services sector. “There is no leadership or plan from the Albanese Government and the ecosystem of innovative businesses supporting the CDR is suffering as a result.” Shadow Assistant Minister for Treasury, Charities, and Competition, Senator Dean Smith said the Government’s delay in enacting CDR Legislation is denying Australian consumers the benefits of enhanced competition in the banking and energy sectors. “The Coalition has forced the CDR back on the legislative agenda, and swift passage of the legislation next week will be a step towards improved competition outcomes for the economy at a time where Australia’s competition landscape is languishing. “Australian consumers are paying a high price for Labor’s inaction and their delay is further proof that this Government fails to understand the levers that will drive improved productivity, bring down cost of living pressures, and improve living standards.” ENDS