The new law will establish a data right for consumers, giving individuals and small businesses to access their own data, and the right to authorise for it to be passed on to third parties.
The Consumer Data Right will first apply in the banking sector, where it is referred to as Open Banking, from 1 July next year.
The ACCC will be the lead regulator overlooking the reform, along with the Office of the Australian Information Commissioner, with a new Data Standards Body developing transfer and security standards.
Consultation on the ACCC’s Rules Framework for the legislation ended on Sunday, with the consumer watchdog expected to return a draft outline for open banking later this month.
The consultation received submissions from a number of organisations including ASIC, the ABA and big four banks.
ANZ noted in its submission it remains to be seen how the terms and conditions for products will be implemented by July, if at all. NAB said likewise of the timeframe, with the concern that not taking enough time could endanger customers’ data and privacy.
The government has said the legislation will allow for people’s circumstances to be more accurately accounted for when engaging with products and service providers.
Open banking is also said to allow for consumers to more easily compare prices and switch between products and providers, in favour of something more suited to their needs.
The Coalition has added that the reform implements commitment made by the government in response to its review into open banking, along with the Productivity Commission’s inquiry into data availability and use.
“Better access to data will also support more efficient processes for businesses, with savings flowing through to consumers,” the Treasury said.
“Improved competition and data-driven innovation will support economic growth and create new high-value jobs in Australia.”
The law will also be applied to the energy and telecommunications sectors.
