The Australian Banking Association has welcomed the announcement of the government’s digital business plan but when it comes to the details not much of the ABA’s wishlist has made it into the plan.
The government said it will invest A$800 million “to enable businesses to take advantage of digital technologies to grow their businesses and create jobs as part of our economic recovery plan”.
The big items in the plans are an investment of $419.9 million on the Modern Business Registers program and a $256.6 million investment in a digital identity system for engagement with government services.
Other items include an additional allocation of funds for the development of the Consumer Data Right, acceleration of the 5G telecommunications rollout, support for small business through funding of a digital advisory service and export backing for fintechs.
The government will support a couple of blockchain pilots and work towards the adoption of electronic invoicing for all Commonwealth agencies. It will fund a review of the regulatory architecture of the payment system and reform the regulation of stored value facilities.
The ABA worked with several other business groups, including the Business Council of Australia and the Council of Small Business Organisations, on a campaign to encourage the government to support the development of a “new digital economy”.
The group wrote to the National Cabinet recommending that changes should be made to allow deeds to be created and signed electronically and that electronic signatures be accepted for a broader range of legal and business documents, including guarantees, statutory declarations and trusts deeds.
The ABA’s agenda also includes a permanent move to fully electronic mortgages, witnessing of documents over video calls and signing documents electronically.
Mortgages can be lodged electronically with land registries in most states and territories now. However, paper signatures and in-person witnessing is still required for the counterpart mortgage – the copy of the mortgage held by the bank and not lodged with the registry.
The ABA is calling for removal of the requirement for the counter mortgage to be signed on paper by the mortgagor and mortgagee. It is also calling for removal of the requirement for signatures on these documents to be witnessed.
The government will announce more details of the plan when it hands down the Budget next week, so electronic mortgages and digital witnessing might still make the cut.