Scam Prevention Bill Sparks Debate Over Delays, Effectiveness

When is sounds too good to be true, it's a scam. NONGASIMO/Shutterstock

The Opposition criticised the Albanese government’s proposed anti-scam legislation, describing it as rushed and incomplete.

Speaking in Parliament, Liberal MP Luke Howarth highlighted the absence of sector-specific mandatory codes and a straightforward mechanism for consumer redress.

“The concept of a scams prevention framework is broadly supported by all stakeholders, including banks, telcos, and digital platforms,” he said.

However, he argued that the bill’s most critical protections remain undrafted.

“[It] is unlikely that the full framework will be operational before the next election,” he said.

Howarth also accused the government of rushing the consultation process, giving stakeholders only three weeks to review the draft legislation.

“The bill has been described as rushed, heavy handed, complex, unclear, and stacked against consumers,” he said.

On Nov. 7, the proposed anti-scam bill was introduced to bring in tougher rules for businesses, requiring them to actively monitor and prevent scams.

It grants regulators, including the Australian Competition and Consumer Commission (ACCC), greater oversight, with penalties of up to $50 million (US$33 million) for non-compliance.

Financial institutions would be mandated to enhance transaction checks, while digital platforms must verify advertisers more rigorously.

The bill also proposes simpler ways for consumers to report scams and access dispute resolution mechanisms.

“[This bill] will make Australia one of the toughest places in the world for scammers to operate,” Minister for Financial Services Stephen Jones said on Nov. 7, citing the recent HSBC scam as an example of damage the new laws could help prevent.

Greens Oppose Bill Over Lack of Victim Support 

The Greens have announced their opposition to Labor’s Scams Prevention Framework Bill, arguing that it prioritises corporate profits over the needs of scam victims.

“Labor has delivered for big banking corporations by making sure this bill is more about protecting profit than helping people who have been scammed,” said Greens economic justice spokesperson, Senator Nick McKim.

“This whole bill is a scam because it claims to support people who have been scammed but is designed to make it almost impossible for them to get compensation.”

McKim criticised the bill for leaving scam victims to fight lengthy battles against major banks, telcos, and digital platforms to recover their losses.

“This legislation creates a David and Goliath scenario where scam victims face a convoluted and lengthy process, likely taking years, to seek redress,” he said.

The parliamentary debate on the anti-scam bill has been adjourned to a later session, with its passage still uncertain.

Criticism of Implementation Delays 

Howarth highlighted the lengthy delays in drafting the legislation, which took over two years to develop, only for it to be rushed into Parliament in the government’s final months.

“Good intentions don’t always equal good policymaking or good legislation,” he said.

The bill allows for the expansion of scam prevention rules to new sectors such as superannuation, insurance, and cryptocurrency.

However, Howarth expressed scepticism about the timeline for implementation, saying Australians remain vulnerable to scams in the meantime.