The government has said fresh funding for the Consumer Data Right will set up a new phase of data sharing, but industry bodies have stressed that further measures are required.
In the 2026–27 federal budget, the Albanese government confirmed fresh funding and policy measures for the Consumer Data Right (CDR), including plans to explore sharing certain ATO‑held data.
The budget papers described the reforms as “continuing to make engagement easier and quicker” through upgraded digital infrastructure.
On identity, the government will expand its Digital ID Scheme, touting it as a “simple and secure way” for Australians to verify who they are and access 255 government services online.
The government said this would bolster efficiency and fraud‑reduction benefits across agencies and accredited private‑sector providers.
The budget also extended the operation of the CDR, explicitly flagging work “to explore the potential for taxpayers to safely share their ATO‑held data” through the regime.
In partnership with industry, the government said it would test whether using CDR alongside Digital ID could better protect renters’ personal information and make rental applications easier.
To fund that next phase, the government allocated $62 million over two years from 2026–27 to broaden participation in the CDR and investigate how ATO data could be brought into the system.
The Customer Owned Banking Association (COBA) welcomed the commitment to extending the CDR, particularly the prospect of including ATO‑held data.
COBA CEO Michael Lawrence said customer‑owned institutions supported the CDR from the outset and had long advocated changes that lifted customer value.
“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,” Lawrence said.
He said that bringing online government data into the program would strengthen security and adoption.
“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,” he said.
Industry body FinTech Australia also endorsed the renewed support for CDR, yet cautioned that funding needed to translate into practical delivery.
“These systems are foundational digital infrastructure for the future economy,” Fintech Australia CEO Rehan D’Almeida said.
“However unlocking their full economic value will require stable long-term funding, practical implementation and continued focus on reducing unnecessary compliance friction.”
D’Almeida said he supported the shift toward “more co-ordinated, technology-enabled and proportionate regulation”, but pointed out that firms were already working through a heavy pipeline of reforms “across payments, digital assets, AML/CTF, scams, AI, Digital ID and open banking”.
“Ensuring these reforms are properly sequenced and practically implementable will be critical,” he said.
[Related: Calls grow to expand CDR as AI heightens data risks]
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