Chapter 5Committee view

5.1The committee notes that scams are a significant concern for Australian consumers and small businesses, causing financial harm and distress. Concerningly, scams are becoming increasingly sophisticated and industrialised, requiring a whole-of-economy approach to prevent scams from reaching Australians.

5.2The committee is encouraged by the broad support received for the whole-of-economy Scam Prevention Framework that will mitigate the financial, psychological and economic harm caused by scams.

5.3The committee emphasises extensive evidence from inquiry participants that the status quo is not acceptable, and action needs to be taken to provide broad scam protection for consumers.

5.4The committee echoes calls from inquiry participants who urged this bill to pass the Parliament as a priority to commence work on industry codes to further reduce scam losses in Australia.

5.5The committee notes the significant work already undertaken by the Government and industry that is resulting in a reduction in scam losses for the first time in nearly a decade. This includes the SMS Sender ID registry, the National Anti-Scam Centre, eInvoicing reforms and the Australian Securities and Investments Commission (ASIC) website takedown powers.

5.6The committee welcomes that the Scam Prevention Framework will complement these existing policies and go further to protect consumers.

5.7The committee notes the need for digital platforms to meet standards being developed in other sectors of the economy, and in particular the need to provide internal dispute resolution processes which will be an obligation of the Scam Prevention Framework.

5.8The committee welcomes that for the first time, industry will be subject to mandatory codes that require the protection of consumers and to take actions to disrupt and report scam activity.

5.9The committee further welcomes the penalty scheme in the bill that will encourage adherence to the codes, and ensure appropriate consequences are available when the codes and broader Scam Prevention Framework are disregarded.

5.10The committee welcomes support for the external dispute resolution processes required by the bill, and the ability to provide redress when obligations are not followed, and scam losses occur.

5.11The committee notes confidence in the Australian Financial Complaints Authority (AFCA)as a well-respected and effective external dispute resolution body that will provide appropriate dispute resolution for consumers and businesses.

5.12The committee is confident in the regulatory collaboration between the Australian Competition & Consumer Commission (ACCC) as the general regulator and ASIC and Australian Communications and Media Authority (ACMA) to deliver industry specific and coordinated regulation to ensure an effective whole-of-economy approach.

5.13The committee notes the existing collaboration of these regulators to address scams and is encouraged that this model will support positive outcomes for industry, businesses and consumers.

5.14The committee notes that as a framework bill, further detail to enliven the Scam Prevention Framework will be included in future legislative instruments, and notes witnesses’ appreciation for the level of flexibility this approach will provide.

5.15In particular, the committee notes the commitments of inquiry participants to engage in consultation on future sector-specific codes and rules that will be set by the Minister.

5.16The committee notes that Treasury will continue to engage with regulated entities and stakeholders to improve the operations of the Scam Prevention Framework to ensure clarity and confidence in it.

5.17The committee recommends that the Senate pass the bill.

Senator Jess Walsh

Chair

Labor Senator for Victoria