Australia's decision to give financiers greater access to people's credit histories has given New Zealand's finance industry hope that our Government will do the same.
The Australian Government has accepted many of the recommendations of an Australian Law Reform Commission report into privacy - including that the country move to positive credit reporting.
New Zealand and Australia are unusual among OECD countries in retaining negative credit reporting.
This means credit agencies can keep only limited data on a person, including "negative" aspects such as whether they have defaulted on bills or been bankrupted.
Credit reports show how many times a person has applied for credit, but not what for or whether it was approved.
Under a positive system, the agencies would be able to keep more comprehensive records, including items such as mortgage and credit card details and repayment histories.
The finance industry says this would help it make better lending decisions, refusing credit to those who are overstretched and giving a second chance to people who have run into trouble in the past.
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The Privacy Commissioner is conducting a review of our own Credit Reporting Privacy Code, and had been waiting to see which way the Australians would go.
"The Australian situation will influence the sort of decisions we take in New Zealand," Commissioner Marie Shroff told a New Zealand Credit and Finance Institute Conference last week.
"We are mindful of continuing the alignment that currently exists where that will be useful."
Australia is looking at adding four new pieces of information to personal credit files:
The type of each current credit account - mortgage, credit card, personal loan, etc
The date each account was opened
The limit on each account
The date each account was closed.
It will also look at making payment records available, but only once proposed new responsible lending obligations are introduced.
This is broadly in line with what the New Zealand credit reporting and finance industry wants.
In reference group discussions held by the Privacy Commissioner as part of her review, there was general agreement that credit reports should list the type of credit and amount approved, the lending institution, whether the account was open or closed and relevant dates, and the repayment history over two years.
Credit and Finance Institute president David Young said any move Australia made in this regard "points us in the right direction".
It was likely New Zealand would follow suit - "The main users of such information are the banks, and who owns them?"
Credit agencies have been lobbying for a shift to comprehensive reporting.
In August, Veda Advantage started a points system giving all Kiwis a creditworthiness score.
The range is from minus 330 to plus 1000. Most people are expected to rate over zero, although those with a score of less than 100 will find it difficult to obtain credit.
Veda's local head John Roberts has said the system would become more relevant if New Zealand moved to positive reporting.
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