Payday Loan Industry

Mr CREGAN (Kavel) (14:39): My question is to the Attorney-General. Can the Attorney-General update the house on South Australia's payday lending reforms?

The Hon. V.A. CHAPMAN (Bragg—Deputy Premier, Attorney-General, Minister for Planning and Local Government) (14:39): I do thank the member for his interest in this matter. I think that the whole question of payday lending has been more acutely in the minds of people because of the COVID circumstances we have had to deal with during 2020 and the potential of exploitation of those who are in a vulnerable financial position, so it is with pleasure that I provide an update.

I have indicated that the commonwealth, in my view—and I think even in the previous Attorney-General's view—was moving at a glacial pace in relation to reform in this area. In March 2020, the Assistant Treasurer, the Hon. Michael Sukkar MP, advised me that the federal government was:

…considering the public submissions on the final reforms to ensure the right balance is struck between enhancing consumer protection, while also ensuring these products and services can continue to fulfil an important role in the economy.

I have to say that when I read something like that it doesn't tell me very much. In any event, by September this year the commonwealth announced that they were progressing their reforms relating to the small amount credit contracts and consumer leases. There were protections to be progressed in conjunction with responsible lending reforms also announced on 25 September.

It moved to the CAF and in November 2020, and the states and territories called on the commonwealth to commit to introducing the legislation. There wasn't a time frame identified but, fortunately, by 20 November this year the consultation period of the commonwealth concluded. As part of that process, a draft bill and regulations were released for comment. Neither the draft bill nor regulations released for comment incorporated protections regarding the SACCs and consumer leases.

Given the financial pressure, as I have outlined, that some South Australians are facing as a result of COVID and the potential heightened vulnerability, it's important that those national reforms still progress as a priority. I have previously informed the house of my instructions to Consumer and Business Services to provide me with advice on our options. I was intending to introduce our bill to the South Australian parliament this week, but I have been assured by the federal Treasurer that the bill will be introduced next week in the federal arena. This obviously avoids jurisdictional and constitutional complications.

The commonwealth to date have declined to provide me with a copy of the bill and haven't given me a reason why. I will eagerly review the bill next week when we receive it, but in my view it's far too important to leave this situation to chance. If the bill isn't with me and I am unable to review it, this matter will be progressed in the early new year.

I will continue to advocate for South Australians, as I would hope all members here will, to ensure that we do protect the most vulnerable, especially in a circumstance where they may be in some impecunious state and pushed up against the wall in relation to their financial circumstances. It is a situation where we do not want them to be predated upon or trapped by payday lenders who are acting in an unscrupulous way, and I will continue to advocate in this area.