Revised Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP and Minister for Communications the Hon Michelle Rowland MP)General outline and financial impact
Scams Prevention Framework
Outline
The Bill implements a legislative framework to prevent and respond to scams. The amendments introduce a framework with overarching principles and a multi-regulator framework, and enables sector codes to be made and an EDR scheme to be authorised.
Date of effect
The Bill commences the day after Royal Assent.
Proposal announced
The Bill implements the Government's election commitment to require social media companies, banks and telecommunications providers to take robust steps to prevent and respond to scams impacting consumers, announced on 29 November 2021.
It also partially implements the 2024-25 Budget Measure titled 'Fighting Scams', by facilitating the introduction of mandatory industry codes to be established under a whole-of-economy legislative framework.
Financial impact
The Bill is estimated to have a negative impact of $51.9 million in underlying cash balance over the four years to enable regulators to administer and enforce the SPF and provide seed funding for AFCA to establish EDR rules and processes for the SPF. ASIC and ACMA functions will be subject to cost recovery arrangements.
All figures in this table represent amounts in $million, rounded to the nearest $0.1 million each year.
| 2024-25 | 2025-26 | 2026-27 | 2027-28 | |
| Payments | 16.5 | 18.5 | 8.3 | 8.6 |
| Receipts (cost recovery) | - | 8.0 | 5.2 | 4.5 |
| Total | 16.5 | 10.5 | 3.1 | 4.1 |
Impact Analysis
The Impact Analysis relating to this Bill has been included at Attachment 1.
Human rights implications
The Bill raises human rights issues. See Statement of Compatibility with Human Rights - Chapter 2.
Compliance cost impact
It is estimated that this reform would result in an overall increase in regulatory compliance costs of around $228.8 million in the initial year of operation and $88 million for each year ongoing across entities in industry sectors that the Government has indicated will be designated.