Weekly Update: 18.11.22

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“Agriculture in Australia has a proud record of overcoming extreme adversity, most recently meeting the challenge of major flood events head on. Banks are standing by to support customers affected and the message is to reach out to your bank if you need their support.” 

– ABA CEO Anna Bligh, National Agriculture Day, 2022

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Parliamentary Update:

• The Prime Minister travelled to Bali for the G20 Leaders’ Summit, under the theme “Recover Together, Recover Stronger”. The PM notably held a bilateral meeting with President Xi of China, the first high-level contact in almost three years. The Prime Minister is now in Bangkok, Thailand, to attend the APEC Economic Leaders’ Meeting.
• The Treasurer also travelled to Bali for the G20 Joint Finance and Health Ministers Meeting, as well as meeting the global business community at the B20 Summit, which aims to support increased collaboration between developed and developing countries.
• The Treasurer, Assistant Treasurer Stephen Jones, and Assistant Minister Andrew Leigh welcomed an ACCC report into digital platforms.
• Assistant Minister Andrew Leigh announced an expansion of the Australian Government’s tax treaty network. New negotiations are planned with Bulgaria, Colombia, Croatia, Cyprus, Estonia, Latvia and Lithuania. These countries will be added to the current program which includes Portugal, Slovenia, Greece and Luxembourg and Iceland.
• In response to rising pressure on cryptocurrencies, after the FTX collapse, the AFR reported that: “Treasury has signalled it will open consultations to safeguard crypto custody arrangements and regulate exchanges next year, following the current ‘token-mapping’ consultation process suggested by Liberal Senator Andrew Bragg last year” and “Legislation is expected to be introduced to parliament next year.”

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Policy Update:

• ABA policy team members visited flood-impacted communities in Victoria, including attendance at an Insurance Council of Australia-led town hall in Rochester.
• The ABA held a workshop with the Australian Financial Security Authority to understand how to best support customers as they go through bankruptcy and insolvency.
• The ABA met with the National Housing Finance and Investment Corporation (NHFIC) to understand the federal Government’s Help-to-Buy Scheme, and the Housing Australia Fund, which is expected to support 40,000 social housing places.
• The ABA attended the Inaugural Lifeline International President’s lunch where the 2023 global campaign to decriminalise suicide was launched. Suicide is still illegal in 35 countries.

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Communications Update:

• Today is National Agriculture Day. The ABA has marked the occasion by announcing the industry’s record levels of lending ($104.7b) as well as the banking industry’s support to farmers.
• The ABA continues to raise awareness in regional communities of bank support to those impacted by floods. Reporting continues.

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Regulatory Update:

• Following a review by Accenture, the ASX has cancelled its blockchain-based replacement of the CHESS clearing house. The RBA and ASIC released a joint letter of regulatory expectations of the ASX to replace CHESS in a safe and timely manner.
• The fifth interim report of the ACCC’s five-year Digital Platform Services Inquiry has been released. Key findings and recommendations:
  • The ACCC has identified a range of consumer and competition issues with digital platforms.
  • Stronger safeguards are needed for consumers and small businesses to promote trust and confidence and minimise harm.
  • The ACCC recommends legally binding codes of conduct, applied service-by-service.
  • Similar reforms are already happening overseas.

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Economic Update:

• Unemployment has decreased to 3.4%. The October 2022 ABS Labour Force data also showed a decrease in underemployment to 5.9%.
• Wages rose 1.0% this quarter and 3.1% over the year. The ABS reports that private sector wages rose 1.2% and the public sector rose 0.6%. The private sector’s rise of 1.2% is the highest quarterly rate of growth since September 2010. Private sector growth is now at 3.4%, the highest annual rate since December 2012.

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Read the full update here

Weekly Update