The aim of mandatory comprehensive credit reporting is to give a better idea of anindividual's creditworthiness by allowing positive information,like consistent repayment of loans and credit cards,to be communicated to credit bureaus.
While the big banks have moved to carry this out over the past year,the legislation for the policy lapsed at the last parliament and the laws are still under consultation.
The final draft rules draw on advice from numerous business and consumer groups,including the small business ombudsman,to make lenders share information about changes to payment arrangements where the individual was facing financial difficulty and the bank had recognised this.
At the start of this month attorney-general Christian Porter confirmed the government would change the proposed rules so when a formal hardship arrangement was in place,credit bureaus would be able to see this.
It is proposed'hardship arrangement indicators'could be placed on credit reports when a borrower had a temporary hardship arrangement,while'contract variation indicators'could show when a deal had been struck with a bank to change the terms of contract.
When a bank has information about a hardship arrangement and doesn't pass this on to reporting agencies,they could be liable for civil penalties of up to 500 penalty units,or $105,000.