Weekly Update: 14 June 2024

Highlights this week:

• Announcement: Assistant Treasurer Stephen Jones announced that the NASC will join the AFCX intelligence loop alongside banks, telcos and digital platforms. 
• In the media: The Federal Government’s new laws banning the use of credit cards for online gambling came into effect this week, offering better protections for customers, and making it illegal for an online gambling company to accept a credit card.
• Key data: Unemployment fell to 4% in seasonally adjusted terms in May 2024, while the participation rate remained at 66.8%. 

Quote of the week:
“In recent weeks, I have had the opportunity to discuss the priorities of financial and markets’ regulators across a range of jurisdictions. The rise and use of AI and the proliferation and impact of digitally-enabled scams were significant areas of focus at the recent meeting of the International Organization of Securities Commissions…It is reassuring that the issues ASIC is focused on in Australia, are the same as our global peers.” 

– Opening statement by ASIC Chair Joe Longo at the Parliamentary Joint Committee on Corporations and Financial Services, Oversight of ASIC, the Takeovers Panel and the Corporations Legislation, 14 June 2024. 

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Parliamentary Update:

• Assistant Treasurer Stephen Jones announced a cross-sector and Government anti-scam delegation. The delegation’s focus was a mutual fact‑sharing exchange between Australia, New Zealand and Singapore, including on issues such as:
  • scam trends and insights; 
  • Australian anti scam technology innovation;  
  • Singapore’s strategies to disrupt scams from social media and search engines; and 
  • regulatory and industry approaches to addressing scams, including anti scams mandatory codes.
• The Prime Minister marked a significant visit to Australia from Chinese Premier Li, saying that ‘working productively with China will benefit everyone in the region’.  
• Treasurer Jim Chalmers delivered a speech at Morgan Stanley’s annual conference, defending the Government’s Budget strategy and stating he was “confident but not complacent of a soft landing on a narrow runway” for the Australian economy. 
• Shadow Treasurer Angus Taylor issued a media release critical of the Treasurer and Government’s economic performance and strategy. 
• Assistant Minister Andrew Leigh addressed an ABS/RBA conference on the topic of ‘Artificial Intellifence at Work: Changing Demand for AI Skills in Job Advertisements’.  
• Queensland Deputy Premier and Treasurer Cameron Dick handed down the Queensland Budget 2024-25, emphasising ‘cost of living action’.  

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Policy Update:

The ABA:  

• joined a scams delegation to Singapore as part of the industry’s ongoing efforts to take up the fight to scammers and protect customers.
  • the delegation was led by Assistant Treasurer Stephen Jones and included representatives from the Australian Banking Association, Customer-Owned Banking Association, Australian banks, the National Anti-Scam Centre, Australian Financial Crimes Exchange as well as observers from the Government of New Zealand. 
  • discussions highlighted the importance of cross-border collaboration so that the industry can present a united front against these sophisticated international crime gangs. 
• held several meetings with APRA regarding policy on CPS230 Utility; CPG230 release, CPS510 Governance. 
• met with COSBOA.  
• attended a Mortgagee Workshop on implementation of eConveyancing in Tasmania.  

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Regulatory Update:

• The Council of Financial Regulators issued their June quarterly statement. 
• APRA released the March quarterly Authorised Deposit-taking Institution statistics. 
• APRA released its finalised prudential practice guide to help banks, insurers and superannuation trustees implement CPS 230 Operational Risk Management. 

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Economic Update:

• ABS Labour force data showed the unemployment rate was at 4.0% in May 2024 in both trend and seasonally adjusted terms. This continues a medium-term upward trend from 12-24 months ago. 
• RBA Retail payments data showed a continued growth in debit and credit card payments (8.5% by value and 8.7% by volume in the year to April 2024) as well as those on the NPP platform (26.3% and 18.2%, respectively). In contrast, ATM withdrawals increased but only modestly (4.1% by value and 0.8% by volume). 

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Communications and Media:

• The ABA issued a media release on this week’s scams delegation to Singapore and welcomed the announcement of the intel loop. 
• Anna Bligh took part in a press conference with Assistant Treasurer Stephen Jones on the expansion of the intelligence loop. Transcript can be found here.

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Coming up next week:

Coming up next week:
Parliament/Regulators:  

• On 17 June the RBA board meets and concludes on 18 June at 2:30pm with its monetary policy decision.
• The NSW Government will deliver its 2024-35 Budget on 18 June.

Data announcements:  

• On 19 June the RBA will publish their monthly chart pack: Graphs on the Australian economy and financial markets.

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Upcoming Submissions:

Published submissions

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Selected Media:

• The Australian – Google missing as banks, telcos and Meta sign on to scams fight 
• ABC – If inflation is falling, why are prices of essentials still rising so quickly? 
• SMH – The real risk facing Afterpay and its rivals 
• The Australian – Online scams run rife as tech giants prioritise their profits ahead of sound policy 
• AFR – The Fed treats itself to the luxury of time when it comes to rates 
• The Australian – Stephen Jones to lead delegation to Singapore to crack down on online scammers 

Weekly Update