Jenny McAllister (NSW, Australian Labor Party, Shadow Assistant Minister for Families and Communities) Share this | Hansard source

Labor will support the Treasury Laws Amendment (Gift Cards) Bill 2018. This bill seeks to enfranchise gift card recipients who have been adversely affected by a previously disjointed, state-by-state approach to Australian gift card regulation. In Australia, 34 million gift cards are estimated to be sold each year by national retailers and small businesses, with an estimated value of $2.5 billion. One of the commonly used terms and conditions of gift cards are expiry dates. Many consumers' gift cards expire before they get the chance to use them, resulting in financial loss and disappointment for gift card recipients. Currently, the length of an expiry date on a gift card may vary considerably depending on the preferences of the trader. Losses from Australian gift card expiry are estimated to be $70 million annually.

This bill implements a minimum three-year expiry period for Australian gift cards, improving fairness for consumers and ensuring that they have an appropriate period of time to redeem the balance of a gift card, leading to a reduction in breakage. There is no prohibition on providing a longer expiry period. In addition, this bill includes increased disclosure requirements, including expiry information being prominently displayed on the card to ensure that consumers are aware of the expiry date of the card. This is largely consistent with industry practice and a majority of gift cards already display this information.

This bill will prohibit gift card suppliers from charging certain post-supply fees which can erode the balance on a gift card over time and operate as a de facto expiry date. This bill also voids existing terms and conditions on cards already in supply if they breach the above changes. The proposed three-year minimum expiry period does not change consumers' rights in the event that the supplier of the gift card becomes insolvent or bankrupt. They will continue to be treated as unsecured creditors.

Labor is pleased that the government has finally brought forward new legislation in the consumer affairs space. This government, with its sixth minister responsible for consumer affairs in five years, has let consumers down by deferring the Legislative and Governance Forum on Consumer Affairs, which was scheduled for August, due to leadership woes. Though Labor is pleased with the introduction of this bill, it is mind-boggling that it had to be approved by a circular resolution instead of at the cancelled national COAG consumer affairs forum. This is a government that is far more interested in its own party than in Australian consumers.