The Albanese Government is planning a reset of the Consumer Data Right (CDR) in a bid to improve consumer outcomes.

The CDR is Australia's consumer data-sharing system, designed to help consumers safely share their data between service providers to make more informed financial decisions. Currently, the initiative is active in the banking and energy sectors.

Assistant Treasure and Minister for Financial Services, Stephen Jones, said the Albanese government believes the CDR has the potential to deliver real economic transformation, but that poor execution by the former government has made it costly for businesses to implement, resulting in low adoption.

The government plans to resolve these issues to ensure Australians can unlock the value of their data. It aims to reduce friction within the CDR to improve cost-effectiveness, uptake, and deliver better financial outcomes for consumers.

The government has opened consultation on changes to consent and operational rules, released the Heidi Richards report on CDR compliance costs, written to the Chair of the Data Standards Body for alignment, and signalled the intention to expand CDR to non-bank lending in early 2025.

The Data Standards Body has finalised a new Standards Assessment Framework, developed with industry, that complements the government's direction for the CDR by prioritising the highest value use cases.

The Albanese Government is focused on getting the existing CDR framework on a more sustainable footing and will not rush to declare new action types until the CDR is back on track.