Update to RG 209 – Credit Licensing; Responsible Lending Conduct
Submission to: Australian Securities and Investments Commission
Related Projects
ParentsNext: examination of Social Security (Parenting payment participation requirements – class of persons) Instrument 2021
Submission to: Parliamentary Joint Committee on Human Rights
We echo the concerns of our colleagues across the community sector about the punitive aspects of ParentsNext. The program can exacerbate the financial issues facing single parents. Between July 2018 and February 2021, over 52,000 parents had their payments suspended, for an average of 5 days. Just over 1,000 parents had their payments cancelled. Many of these people would have faced a financial crisis as a result. This increases demand for emergency relief services, including food. Some people will have gone into debt to cover the financial shortfall, including high cost payday loans. The problem is that ParentsNext is a one size fits all program. Instead what is needed is targeted, strength-based support.
We echo the concerns of our colleagues across the community sector about the punitive aspects of ParentsNext. The program can exacerbate the financial issues facing single parents. Between July 2018 and February 2021, over 52,000 parents had their payments suspended, for an average of 5 days. Just over 1,000 parents had their payments cancelled. Many of these people would have faced a financial crisis as a result. This increases demand for emergency relief services, including food. Some people will have gone into debt to cover the financial shortfall, including high cost payday loans. The problem is that ParentsNext is a one size fits all program. Instead what is needed is targeted, strength-based support.
Financial Sector Reform Bill 2022 – Compensation Scheme of Last Resort and Financial Accountability Regime
Joint consumer group submission (led by Choice) about specific components of the Financial Sector Reform Bill. In relation to a compensation scheme of last resort, the submission recommends expanding the scope of the proposed scheme including managed investment schemes, funeral expenses policies and relevant court and tribunal decisions. The compensation cap for the CSLR needs to be the same at that for the Australian Financial Complaints Authority. In relation to the Financial Accountability Regime, the Bill needs to provide for civil penalties, the deferred remuneration obligations need to be strengthened, the scope of the regime should expand to include senior executives and managers and this group should also (as in the UK) be required to treat customers fairly.