Weekly update: 28.04.23

“While inflation is still unacceptably high, we welcome that some price pressures have started to ease. The drivers of the moderation in inflation were lower fuel prices from previous war‑driven highs, easing vegetable prices from the floods and easing growth in the cost of new dwellings”

Treasurer Jim Chalmers

Parliamentary Update:

• Communications Minister Michelle Rowland announced the Federal Government will ban the use of credit cards with online bookmakers. The ABA has been calling for online gambling policies to be brought into line with other wagering over many years, most recently with an appearance from ABA CEO Anna Bligh before the House Standing Committee on Social and Legal Affairs. The Federal Government’s proposal will omit lotteries from the ban, including those offered by charities. 
• Communications Minister Michelle Rowland and Assistant Treasurer Stephen Jones announced that an SMS sender ID Registry will be established through the 2023-24 Budget, and be administered by the Australian Communications and Media Authority (ACMA). The Registry will help prevent scammers from imitating key industry or government brand names – such as Linkt or myGov – in text message headers.
• Treasurer Jim Chalmers conducted an investor roundtable and announced new measures to boost investment into clean energy, including on sovereign green bonds, expanded energy efficiency ratings, and green investment integrity measures. 
• Housing Minister Julie Collins announced a revised National Partnership Agreement (NPA) that will extend the deadline for existing HomeBuilder applicants to submit supporting documentation from 30 April 2023 to 30 June 2025.
• The Treasurer spoke to media following the release of the latest quarterly CPI numbers, stating that inflation has peaked. 

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Policy Update:

• The ABA attended the National Housing Finance and Investment Corporation’s (NHFIC) State of the Nation’s Housing 2022-23 event which included an industry presentation, a keynote speech from the Hon. Julie Collins MP, Minister for Housing, Minister for Homelessness and Minister for Small Business, and a panel discussion about the trends outlined in NHFIC’s latest report. 

Wayne Swan, Cbus Super Chair. Tarun Gupta, Stockland Managing Director and CEO. Sophie Fallman, Brookfield Real Estate Group Managing Partner and Head of Real Estate in Australia. Michael Brennan, Chair of the Productivity Commission. Nathan Dal Bon, NHFIC CEO. Hugh Hartigan, Head of Research, NHFIC.

• ABA was a panellist at the RegTech Association’s Accelerate RegTech 2023 conference. The panel  included CEO RTA Deborah Young and NABs Chief Innovation Office, Howard Silby, who discussed the exploration of ESG, RegTech, and banking.

Accelerte RegTech 2023 conference

• The European Parliament endorsed the Markets in Crypto Act (MiCA) which are the first EU rules to trace crypto-asset transfers, and prevent money laundering, as well as common rules on supervision and customer protection. MiCA is the world’s first comprehensive regulatory framework for digital assets and places the EU a step ahead of other jurisdictions. 

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Economic Update:

• Inflation growth has fallen to 7.0% in the March quarter, down from 7.8% in the December quarter. This is the lowest inflation reported since the June 2022 quarter. 

• The largest contributor to inflation over the past year has been housing, the cost of which has grown nearly 10%, Figure 1. Recreation and culture (8.6%) and food and non-alcoholic beverages (8.0%) were the next largest contributors to growth in CPI. 

Figure 1: CPI, Percentage change from corresponding quarter of previous year, March 2023, %

Source: ABS, Consumer Price Index, Table 3; Analysis by ABA 

However, these contributors to inflation have eased in recent months, with the drivers of inflation for the most recent quarter remarkably different from the drivers of the previous quarters, Figure 2. 

• Increases in the cost of education (5.3%) and health (3.8%) were the largest contributors to inflation in the March 2022 quarter.
• Housing was the third largest contributor to inflation in the March 2023 quarter (1.9%), while food and non-alcoholic beverages (1.6%) was the fifth largest contributor. Recreation and culture grew only 0.2%. 

Figure 2: CPI, Percentage change from previous quarter, September 2022 – March 2023, %

Source: ABS, Consumer Price Index, Table 3; Analysis by ABA 

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Communications and Media Update:

• The ABA issued a media release to welcome the Federal Government’s announcement that it would ban the use of credit cards for online gambling.
• NAB’s Group CEO & Managing Director Ross McEwan delivered the keynote address at the Sydney launch of this year’s Salvation Army Red Shield Appeal, speaking with Jessica Rowe. The 2023 Red Shield Appeal will run until June and is a key fundraiser for the national charity that delivers a series of important community programs and social services.

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Upcoming Events:

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Submissions Lodged:

• Modernising Postal Services
• Treasury Laws Amendment (Measures 4 for Future Bills) Bill 2023: Thin 5 capitalisation interest limitation 

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Upcoming Submissions:

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Selected Media

• AFR – Online gambling ‘loophole’ to be closed with credit card ban
• AAP – Financial hardship levels low but may not last  
• AFR – First Republic’s rescue fails to soothe investor fear  
• AFR – How climate change could hit your mortgage  
• SMH – ‘Game changer’: Smartphones take on new role in payments battle

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