International Law

The Council of Australian Governments (COAG) meeting on 2 October 2008 discussed furthering its reform agenda including consumer protection, health services, climate change and indigenous Australian issues (see communique).

Financial Regulation and Consumer Protection

COAG agreed to an implementation plan for the regulation of remaining areas of consumer credit. This follows COAG?s earlier decision that the Commonwealth would assume responsibility for the regulation of mortgages, mortgage broking, margin lending and all remaining areas of consumer credit, such as pay-day lending and financial counselling services. 

This reform will be implemented in a phased approach, beginning with the transfer of responsibility for trustee companies and existing key credit regulation, including the Uniform Consumer Credit Code as phase one.  The Commonwealth, States and Territories will ensure that legislation giving effect to phase one of the reform agenda will be introduced in the first half of 2009. 

COAG has also agreed to an implementation plan for phase two, the regulation of remaining areas of consumer credit, including pay-day lending (for example, pawnbrokers), credit cards, store credit, investment and small business lending, and personal loans, so that the reform package is completed in the first half of 2010.

COAG also agreed to a new consumer policy framework comprising a single national consumer law based on the Trade Practices Act 1974, drawing on the recommendations of the Productivity Commission and best practice in State and Territory consumer laws, including a provision regulating unfair contract terms.