Scams Prevention Framework Bill 2025; Second Reading

Opened the debate

Watt argued that the bill establishes a world-leading framework to combat scams by imposing obligations on industry and enabling regulatory enforcement. Watt highlighted the severe human and economic impact of scams, noting that losses reached $3 billion in 2022 before decreasing to $2.74 billion in 2023 due to earlier government interventions. Watt explained that the bill targets the entire scam ecosystem, initially designating telecommunications, banking, and digital platform sectors for regulation. Watt detailed six principles for regulated entities, including governance, prevention, detection, reporting, disruption, and response, supported by tailored codes and a safe harbour for good faith actions. Watt emphasised that the framework includes strong enforcement mechanisms, with civil penalties exceeding $50 million, and establishes the Australian Financial Complaints Authority as the external dispute resolution scheme.

Government response

Watt stated that the bill addresses the industrialised nature of modern scams, which are often linked to transnational criminal operations involving forced labour. Watt noted that the government had already established the National Anti-Scam Centre and a Sender ID registry, with the bill serving as the next step to formalise legal obligations. Watt explained that the framework is adaptable, allowing the Treasury Minister to designate additional sectors such as superannuation, insurance, and cryptocurrency in the future. Watt argued that the bill protects consumers by requiring businesses to take reasonable steps to prevent harm and providing clear pathways for redress. Watt confirmed that the Legislative and Governance Forum on Corporations had approved the bill as required.