The Australian Banking Association has joined a number of other business groups in a campaign to encourage the government to support the development of a “new digital economy”.
The group’s agenda includes a move away from paper signatures and the permanent adoption of remote witnessing.
“The temporary introduction of COVID-19 related measures, such as electronic mortgages, witnessing a document over video call and signing documents electronically should be made permanent to save time, money and hassle for Australian customers,” the ABA said.
Other groups in the campaign include the Business Council of Australia, the Australian Institute of Company Directors, the Council of Small Business Organisations, the Financial Services Council, the Real Estate Institute of NSW and the Australian Property Institute.
The group has written 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.
Under current arrangements, emergency e-transaction measures introduced at federal and state level will expire between October and November
ABA chief executive Anna Bligh said in a statement: “Federal and state governments are to be congratulated for moving swiftly during COVID-19 to use their emergency powers to facilitate these e-transactions. It’s now time to make these changes permanent.”
Mortgages can be lodged electronically with land registries in most states and territories now. However, paper signatures are 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.