Weekly Update 24.06.22

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Parliamentary Update:

• Prime Minister Anthony Albanese has announced the appointment of four new departmental secretaries.
• The NSW State Budget was announced. Key points:
  • Return to surplus of $600 million in 2024-25.
  • $3.3 billion for sustainability and the clean economy.
  • $2.8 billion for housing access and affordability, with two key reforms: $780 million trial of a shared equity scheme for 6,000 eligible first home buyers and $727 million to introduce an option for first home buyers to pay annual property tax instead of upfront stamp duty.
• The QLD State Budget was announced. Key points:
  • A new Payroll Tax – Mental Health Levy. More detail in Budget Paper No 4, on p4, p27 and p165.
  • Growth projection of 3.25% this year, more than double national growth rate.
  • $1.9 billion over four years for housing and $1 billion to drive new supply.
• Federal Parliament’s 2022 Sitting Days calendar has been released.

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Economic Update:

• Egypt, Pakistan, Turkey and Peru are among several countries at serious risk of unrest in the next 12 months due to rising inflation.
• Housing markets in New Zealand (1) and Australia (4) rank among the OECD’s Top 5 ‘bubbliest’. Combined price-to-rent and home price-to-income ratios are higher today than prior to the 2008 financial crisis.
• The UK inflation rate has hit 9.1%, the highest since 1982. The Bank of England expects inflation will hit 11% before the end of the year.
• RBA Governor Philip Lowe gave a speech to the American Chamber of Commerce on inflation, outlining the reasoning behind his expectations that inflation will peak at 7% in the December quarter and then decline. Three factors:
  • The pandemic-related supply-side problems in the global economy are gradually being resolved.
  • Inflation is the rate of change of prices, not a measure of the level of prices. For inflation to stay high, prices must keep increasing at an elevated rate.
  • Tightening monetary policy around the world, including in Australia – higher interest rates will lessen inflationary pressures.

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Events:

• The ABA hosted Sex Discrimination Commissioner Kate Jenkins for a ‘fireside chat’ about her work, in particular the Respect@Work and Set the Standard reports. “This is not just individual misconduct – just a few bad blokes or bad people, this is a systemic societal issue driven by power imbalance, gender inequality and lack of accountability. So, the best way to address that is as an industry.” More

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Communications:

• Anna Bligh discussed declining cash use and the increasing moves to digital banking on 6PR Radio Perth, re-reported online and in print: Consumers further reduce their use of cash. Key points:
  • “80 per cent of customers were using virtual channels, rather than ATMs and branches”
  • “Australia still has more branches per 100,000 people than countries like New Zealand, Canada, the United Kingdom and Germany.”

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June 24Weekly Update