Weekly Update: 17 November

“We currently expect a further gradual easing in the labour market resulting from a period of below-trend growth in aggregate demand for goods and services. We expect inflation to continue to decline, but more gradually than anticipated three months ago.“

– Acting Assistant RBA Governor (Economic) Marion Kohler

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Parliamentary Update:

• The Treasury Laws Amendment (2023 Measures No. 1) Bill 2023, which relates to off-market share buybacks and the treatment of franking credits, passed the Senate with Government amendments. The ABA and other stakeholders had proposed a number of amendments which were adopted.  
• Assistant Treasurer Stephen Jones introduced the Treasury Laws Amendment (Tax Accountability and Fairness) Bill 2023, which relates to recent PwC matters  
• The Assistant Treasurer issued a media release following the Federal Government’s release of the first tranche of financial advice legislation, as part of its ‘Delivering Better Financial Outcomes’ package.  
• The Assistant Treasurer addressed the Customer Owned Banking Association, noting the challenge of scams and ‘the way forward’.  
• The Treasurer issued a joint media release with Employment Minister Tony Burke following ABS data release showing the Wage Price Index (WPI) rose 1.3 per cent in the September quarter to be 4.0 per cent higher through the year. 
• Earlier in the week, Treasurer Jim Chalmers participated in the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Meeting in the United States. 

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Policy Update:

The ABA:  

• attended the 2023 ARCA Credit Summit, covering everything from Comprehensive Credit Reporting (CCR) and prevention of data breaches and to managing climate risk and empowering vulnerable customers. 
• attended the final ATO Working group session for the year with member Heads of Tax. The ATO identified early 2024 priorities including implementation of the OECD Pillar 2 rules upon legislation passing and a stepping up in their reviews of corporate submissions relating to hybrid mismatch.   
• held an informal discussion with ASIC on Treasury’s consultation on digital asset regulation. 
• attended Treasury’s information session on the Sustainable Finance Strategy which is being consulted on until 1 December. ABA will attend a more targeted session in the week commencing 20 November. 
• attended the AusPayNet Economic Crime Forum on Monday 13 November. This Forum brings together stakeholders from payments, banking, law enforcement, and has guests from cryptocurrency and digital platforms sectors.  

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Regulatory Update:

• APRA proposes targeted changes on liquidity and capital in response to global banking turmoil. Read more 
• RBA has appointed Sally Cray to the newly created position of Chief Communications Officer at the Reserve Bank 
• ACCC consults on Viva Energy’s divestiture proposal for OTR acquisition. Read more 
• Address by ASIC Deputy Chair Sarah Court at the Australian Retail Credit Association Credit Summit, 16 November 2023 on compliance and enforcement in retail credit and financial services. Read more 
• New nationwide research released by ASIC’s Moneysmart program today shows for seven in ten (68%) Gen Zs, finances are a major cause of concern, more than any other age group (57% of non-Gen Zs). Read more 
• ASIC Chair and AFSA Chief Executive sign refreshed memorandum of understanding. Read more 

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Economic Update:

• The Wage Price Index grew to 4.0% in the September quarter, driven by private sector wages.

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Communications and Media:

• In the third week of the ABA’s financial hardship campaign, CEO Anna Bligh discussed how householders don’t need to tough it out on their own in interviews with ABC TV News Breakfast and Channel 7 News. (Insert image from LinkedIn) 
• We also emphasised some key anti-scams messages in responses to queries from ABC digital and radio and Channel 7 news, outlining the importance of an eco-system approach to fighting scams.  

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Upcoming Submissions:

Published submissions

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Selected Media:

• ABC – Victorian man loses life savings to tech support scam amid ACCC calls for uniform bank policy 
• AFR – Chefs and secretaries are in high demand. Bankers not so much  
• AFR- RBA interest rate rises: another 450,000 mortgages will roll off their fixed rates in 2024  
• AFR – APRA to boost small bank liquidity rules 

Weekly Update