Weekly Update: 6th October

“It sounds like a payments service to me.”
Senator Andrew Bragg Bragg questioning Apple during their appearance before the Senate Inquiry into the Influence of International Digital Platforms” 

Parliamentary Update:

• Assistant Minister Andrew Leigh released the effigy of His Majesty King Charles III which will soon start appearing on circulating coins produced by the Royal Australian Mint. The first coin to have the King’s effigy will be the $1 coin. The coins will start appearing in banks and cash registers across the country before Christmas. 
• Assistant Minister Leigh authored an op-ed on artificial intelligence, arguing the AI boom poses big risks for competition.  
• The Senate Economics References Committee held public hearings as part of its inquiry into the ‘Influence of international digital platforms’. Witnesses included Apple, Google, and Airwallex.  
• The Senate Economics References Committee also held public hearings as part of its inquiry into the ‘Australian Securities and Investments Commission investigation and enforcement’. The hearings heard from members of the public, who in some instances were dissatisfiesd with how ASIC had handled their complaints against banks.  
• Treasurer Jim Chalmers made a key speech delivering the ‘Brighter Future For All Oration’ for Griffith University, focussing on employment and the Government’s recently released white paper.  

Regulatory Update:

• APRA and ASIC commenced joint administration of the new Financial Accountability Regime. Read more 
• The RBA decided to leave the cash rate target unchanged at 4.10 per cent and the interest rate paid on Exchange Settlement balances unchanged at 4.00 per cent. Read the media release here 

Economic Update:

• The ABS monthly household spending indicator showed that households have not dramatically increased their spending over the past six months. Between January and August 2023 the household spending index hovered between 125 and 135.  
• Spending on transport has seen the greatest increase over the year to August 2023 (18.4%) while furnishings and household equipment accounted for the category greatest contraction in spending (-11.4%). 
• According to ABS Lending Indicators refinancing of housing loans continues to remain high, illustrating the trend for consumers to switch between mortgages is continuing. We now have 2,500 mortgages refinanced every working day. 
• The value of new housing loans remains subdued, however, since the peaks of late 2021. 
• Balance of trade on goods and services was higher than expected, at $9.6b in August 2023. Balance of trade remains down from peaks of nearly $18b in May 2022. The unexpectedly high value for August was driven by an increase in export value of non-monetary gold which was nearly double what it was in the previous month. 

Upcoming Submissions:

Published submissions

Selected Media:

• Daily Telegraph – ‘We’d all be screwed’: The one thing saving Australia from economic devastation  
• The AFR – Households ‘coping’ even as mortgage stress climbs higher 
• The SMH – Financial abusers to be cut off from accounts as banks crack down 
• The Australian – Labor and RBA in lock-step on full employment, Chalmers says 

Anna BlighWeekly Update