Anthony Chisholm voted very strongly for increasing consumer protections

The majority voted against amendments moved by NSW Senator Jenny McAllister, which means they failed.

What were the amendments?

Senator McAllister explains that:

The legislation provides exemptions for certain firms from some regulatory obligations. As I argued earlier, we think that these exemptions should only be available to firms that have products and services that are genuinely innovative and will benefit customers. It's the second part of the test that seems to me to be quite important, given the very large number of examples that we have available to us of innovation that in fact is not good for customers and is only good for businesses by virtue of exploiting customers. The amendment that's been circulated sets out a basic test that ASIC would apply. It would empower ASIC to prevent products and services that don't meet the innovation-and-benefit test from accessing the exemption.

What does the bill do?

According to the bills digest:

The Treasury Laws Amendment (2018 Measures No. 2) Bill 2019 comprises two Schedules which have different purposes:

• Schedule 1 amends the Corporations Act 2001 and the National Consumer Credit Protection Act 2009 (NCCP Act) to allow conditions to be imposed on providers of financial and credit products who utilise the Australian Securities and Investments Commission’s (ASIC) existing regulatory sandbox arrangements to test new, innovative ‘Fintech’ products in the Australian market and
• Schedule 2 makes minor amendments to the Income Tax Assessment Act 1997 (ITAA97) and the Income Tax Assessment Act 1936 (ITAA36) to ensure that the venture capital and early stage tax concessions in the ITAA97 and ITAA36 operate as intended.

The majority voted in favour of a motion to agree with the bill's main idea, which means the senators can now discuss the bill in more detail. In parliamentary jargon, they voted to read the bill for a second time.

What is the bill's main idea?

The bill was introduced "to implement a legislative framework consisting of new prohibitions and remedies in relation to electricity retail, contract and wholesale markets." You can learn more about these new prohibitions and remedies in the bills digest.

The majority voted in favour of a motion introduced by Centre Alliance Senator Stirling Griff. Motions like these don't make any changes on their own but are politically influential because they represent the will of the Senate.

Motion text

That the Senate:

(a) notes that:

(i) during the 2017-18 financial year, over 4 million items were recalled in Australia due to safety concerns, including Takata airbags, Infinity cabling, Safetech pool gate latches and Samsung washing machines,

(ii) according to the Australian Competition and Consumer Commission, each day at least 10 people require medical attention as a result of injuries received by using unsafe products, and

(iii) earlier this year, the Federal Court found that the Australian distributor for Thermomix failed to notify consumers of safety issues with the TM31 model – the distributor continued to sell $16 million worth of appliances in the two months between becoming aware of the safety faults and issuing a recall;

(b) acknowledges that, unlike the United Kingdom, the European Union, Canada, Malaysia and Brazil, the Australian Consumer Law does not prohibit the sale of unsafe products;

(c) further notes that:

(i) a General Safety Provision (GSP) could be included in the Australian Consumer Law, which would penalise unconscionable retailers who seek to profit from the sale of unsafe products,

(ii) the introduction of a GSP was recommended by the comprehensive Australian Consumer Law Review in 2017,

(iii) the Communique from the Legislative and Governance Forum on Consumer Affairs (LGFCA), on 31 August 2017, noted that further consultation on the inclusion of a GSP would occur prior to a decision being made at the 2018 meeting of the LGCFA,

(iv) consultation has not occurred, and

(v) the LGFCA will meet on 31 August 2018 to consider the best and most consistent protection for Australian and New Zealand consumers; and

(d) calls on the Federal Government to protect consumers, and act on the recommendations of the Australian Consumer Law Review to introduce a GSP.