Temporary measures introduced during the COVID-19 pandemic allowing the electronic execution of statutory declarations have become permanent for documents executed under Federal legislation.
This means mortgage and finance brokers can continue to execute statutory declarations using the option that suits their customer’s needs, and confidently consider incorporating electronic or digital execution into processes to create further efficiencies and improve customer experiences overall.
Under the amendments to the Statutory Declarations Act 1959, from 1 January 2024, Commonwealth statutory declarations can be executed in any one of three ways:
- traditional paper-based execution, requiring wet-ink signatures and in-person witnessing
- electronic execution, through the application of an electronic signature and witnessing via an audio-visual communication link
- digital execution using an online platform (such as myGov) that verifies the identity of the declarant through a prescribed digital identity service provider. Importantly, this option will not require the declaration to be witnessed. (The digital option is under development by Services Australia and will be available through myGov from early 2024.)
Circumstances when mortgage brokers may need to get statutory declarations from their clients include when the declarant clarifies details around a gift of money, such as parent giving a non-refundable gift to borrowers, or for the clarification of discrepancies in a client’s name on documentation.
The MFAA made a submission on this issue to the Deregulation Taskforce’s modernising document execution – deeds and statutory declarations consultation in August 2021.
“The success of the temporary measures supported economic activity in a safe and modern way and demonstrated the clear benefits of digital transacting,” said MFAA Executive, Policy and Legal Naveen Ahluwalia.
“These benefits include facilitating better experiences for consumers who lack access to technology such as printers and scanners, a reduction in errors and cost savings. We are pleased to see these benefits have been recognised and our members can permanently leverage technology for the purpose of having documents signed and executed.”
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Reference: Article published by the Mortgage and Finance Association of Australia (MFAA).
https://www.mfaa.com.au/news/e-signatures-on-statutory-declarations-become-permanent