Weekly Update: 14.10.22

Read the full update here

We have to be clear: you can never remove the risk but you can be really acutely aware of what those risks are. You also have to think through the next bit, which is how you manage an incident effectively.”

– Department of Finance Secretary Jenny Wilkinson, on the Optus data breach, IPAA conference, Canberra 13 Oct 2022

Parliamentary Update:

• Earlier today, ABA Chief of Policy and Strategy Christine Cupitt appeared before the Senate Economics Legislation Committee as part of their inquiry into FAR and CSLR Bills.
• The OAIC has launched an investigation into the Optus data breach.
• Treasurer Jim Chalmers visited the United States to meet with international economic leaders, and has set out a darkening international economic outlook.
• The NSW Government introduced First Home Buyer Choice legislation, NSW Premier Dominic Perrottet writing in the Sydney Morning Herald that he “… want[s] to change stamp duty for good”.

Regulatory Update:

• The ACCC has flagged a sharp spike in Optus scams, receiving 600 Optus-related complaints a day. The ACCC has published information for APRA-regulated entities applying for Optus data access.
• The RBA has released its September 2022 Official Reserve Assets figures. The RBA holds more gold ($AUD 5.94b), SDRs ($AUD 19.1b) and foreign exchange ($AUD 53.9b) than it did in September 2021.
• A coalition of 9 consumer groups has asked the Senate committee scrutinising the FAR bill to reconsider big fines for individual bankers who breach it.
• RBA Assistant Governor (Economic) Luci Ellis gave a speech on the Neutral Rate indicating that for policy, prescriptive numbers (like a target interest rate) are less important than an understanding of the shifting grounds of economic activity.

Economic Update:

• COSBOA and Square’s first quarterly Small Business Data Report shows that the smaller the business, the harder the impact, during the COVID-era (inferring a lack of foot traffic and less involvement in ecommerce). The data show a sharp improvement in Q2 2022.
• ABS weekly payroll data shows a rise of 0.3% in September (up 6% for the year). Education and training rose 2%; retail and trade rose 1.4%.  Total wages were up 1.4%, (also up 6% for the year).
• The Bank of England’s interventions have failed to reassure bond markets. In the eight bond auctions to date since the mini-budget rout, the BoE bought just £4.6 billion of bonds, about 12% of the £40 billion capacity of the program.
• Alinta’s CEO Jeff Dimery has predicted that the cost of electricity will rise by at least 35% in 2023.
• UBS analysis shows that the majority of households have access to additional savings, and only a minority of customers will become ‘mortgage prisoners’ when fixed rates expire in December 2023 and December 2024.
• ABS building activity shows a drop of -6.5% in the March quarter. Private sector house commencements fell -11.6% for the quarter, and -16.9% for the year. Total private sector other residential (apartments) rose 12.9% for the year.

Communications Update:

• The ABA welcomed the NSW government’s introduction of the First Home Buyer Choice legislation.

Read the full update here

14.10.22BEARCSLRFAROAICWeekly Update