Weekly Update: 16th February

Highlights this week:

• In the media: ABA CEO Anna Bligh warns consumers not to “fall for a fake cupid this Valentine’s Day”  
• Key data: Labour force data showed unemployment increasing from 3.9% to 4.1% 
• Announcement: Government introduces legislation to establish a new designated complaints function within the ACCC 

Quote of the week:
“We are realistic about the challenges facing our economy, including high but moderating inflation, higher interest rates and global uncertainty, all of which are impacting growth, but our AAA rating is further proof Australia is coming at these challenges from a position of genuine economic strength.”

– Treasurer Jim Chalmers

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Parliamentary Update:

• Treasurer Jim Chalmers held a press conference following the release of ABS Labour Force data and issued a statement that welcomed S&P reaffirming Australia’s AAA credit rating. 
• Small Business Minister Julie Collins and Assistant Minister Andrew Leigh announced the introduction of legislation to establish a new designated complaints function within the ACCC.
  • Consumer and small business advocates will have special powers to raise significant and systemic issues with the Australian Competition and Consumer Commission (ACCC) for investigation. 
  • It is expected that the first designated complaints will be able to be lodged with the Australian Competition and Consumer Commission from July 2024. 
• Assistant Minister Andrew Leigh authored an op-ed on competition policy for The Australian. 
• Senate Estimates took place with Treasury agencies appearing over Wednesday and Thursday.
• The ACCC and the RBA were asked questions about the merger of Prosegur and Armaguard by Senator Dean Smith. 

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Policy Update:

The ABA: 

• hosted an industry roundtable with the Department of Home Affairs on proposed legislative changes to support the National Cybersecurity Strategy. 
• met with PEXA on cheques retirement  
• attended a briefing for RBA on our payments & scams subs   
• met with ACMA on SMS ID registry 
• CEO Anna Bligh met with the Minister for Customer Service, the Hon. Jihad Dib MP, to discuss progress on interoperability reforms.  
• met with the Housing Division of Treasury to discuss funding for prefabricated housing. 
• met with PEXA to discuss industry approach to phasing out of cheques used for paper-based settlements. 
• CEO Anna Bligh met with COSBOA to discuss matters impacting on small business lending

Key Submissions:

• APRA’s Targeted changes to ADI liquidity and capital standards 
• ATO’s consultation on Guidance on Capital raised for the purpose of funding franked distributions 

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Regulatory Update:

• ACCC – Designated complaints legislation welcomed. Read more 
• APRA – Federal Court grants injunction to stop another unauthorised banking business. Read more 
• ASIC – New Moneysmart data reveals young women more stressed than young men about finances, cost of living. Read more

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Economic Update:

• Labour Force data showed unemployment increasing from 3.9% to 4.1% and underemployment increasing from 6.5% to 6.6% (seasonally adjusted).  
• This was driven by more people being available for work. In January 2024, the number of people:
  • In the labour market increased from 14,779,100 to 14,801,900 (+21,800) 
  • employed increased, from 14,200,800 people to 14,201,300 people (+500) 
  • unemployed increased from 578,300 to 600,600 (+2,300) 

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Communications and Media:

• The ABA put out a reminder to all Australians to scam-proof their heart from romance scams and other fraudulent schemes on Valentines Day. You can read our media release here.  
• ABA CEO Anna Bligh also warned customers not to “fall for fake cupid” in a short video campaign.  
• Ms Bligh was interviewed live on ABC Perth radio about the digital banking boom and the reduction in the use of cash for payments. 

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Upcoming Submissions:

Published submissions

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Selected Media:

• SMH – Calls to force banks to compensate customers for scam losses 
• The Aus – The Inflation risks are still there, says RBA chief economist Marion Kohler 
• The Aus – RBA governor Michele Bullock says record interest rate rise decision was not a mistake, warns of ‘persistent’ inflation 
• AFR – Bullock ‘agnostic’ on government interest rate powers 
• AFR – Some companies are exploiting inflation to lift prices: RBA boss 

Weekly Update