Australian Government reveals plans to expand CDR to non-bank lending in 2026

The Australian Government has committed to expanding the Consumer Data Right (CDR) to non-bank lending providers from mid-2026, as part of its CDR “reset” unveiled last year.

In a statement, Stephen Jones MP, Assistant Treasurer and Minister for Financial Services, said that “uplifting” CDR will “deliver a better deal for more Australians”.

With effect from mid-2026, CDR will expand to include non-bank lending products, with a view to “promoting greater competition and innovation in the market”, while the requirement for data holders to share consumer or product data for niche products, such as asset finance, consumer leases, reverse mortgages, margin loans and foreign currency amounts, will be removed.

Among the other changes to be introduced in 2026 are a reduction in the period of data to be held and shared from seven years to two years, thereby lowering the costs associated with maintaining and responding to requests for historical data.

The Albanese Government will also ensure that buy now, pay later products are covered by data-sharing obligations.

According to Jones, when they come into effect in mid-2026, the changes will ensure the CDR targets priority use cases, such as consumer finance and lending, “without imposing unnecessary costs and regulatory burden on smaller lenders”.

He said: “The CDR enables Australian households and businesses to access their data held by their bank or electricity retailer through innovative new products that allows them to make informed choices, switch providers, and more easily apply for products and services.

“By unlocking the value of a consumer’s data, the CDR has the potential to be a transformational piece of economic reform for Australian consumers, delivering more choice and access to the best possible deals on a range of financial products tailored to a consumer’s individual need.”

Jones added: “The Government’s changes will open opportunities for consumers to use the CDR to find the best deals on more lending products. It will also address the cost burden of the CDR on the financial sector.”

In November 2024, the Albanese Government unveiled a series of changes to the CDR to encourage further uptake among consumers, following a consultation on changes to consent and operational rules.

Back in August, the Albanese Government promised to instigate a “reset” of the CDR, opening a consultation on the rules around consent, as part of plans to “build a CDR framework that better serves consumers”.