Weekly Update: 16 August 2024

Highlights this week:

• In the Media: ABA launched a campaign highlighting the work banks are doing to protect customers from scams.
• Announcement: Senate Economics References Committee launches inquiry into reducing lending costs and improving accessibility for first home buyers.
• Key Data: Unemployment rises to 4.2%.

Quote of the week:
“We are in a constant war now with some of the world’s most sophisticated international criminal gangs, and that means that banks together have to step up to the mark and take the war to the scammers, and that’s just what we’re doing with a range of initiatives. Doesn’t matter whether you bank with one of the big four or one of Australia’s smallest credit unions or building societies, some of the work that we’re doing together is just that, working together to put a wall up of protection around customers wherever we can.” 

– Anna Bligh, CEO of ABA. Interview on 6PR Perth, 12 August 2024. 

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Media & Communications Update:

• The ABA has launched a campaign highlighting the initatives in the Scam-Safe Accord. The campaign will run on billboards and across TV, radio and digital channels. 
• Anna Bligh was interviewed by a range of radio shows on the launch of the ABA’s new scams campaign. Transcripts of interviews can be read here: ABC Radio Melbourne, FIVEAA Adelaide, 6PR Perth, ABC Radio Perth.

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Policy Update:

• ABA met with AP+ to discuss perspectives on payments strategy and reform. 
• ABA attended the Midtier & International Canberra Roadshow. 
• ABA attended the first meeting for Northern Territory’s implementation of e-conveyancing. 
• ABA attended a NFF meeting on indigenous agriculture products. 
• ABA attended the TISN Banking & Finance Sector Group Meeting.
• ABA CEO was a speaker and attendee at 2024 National Industry Roundtable Land Use Planning & Resilience. 

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Regulatory Update:

• Andrew Hauser, Deputy Governor of the RBA, gave a speech on the risks of overconfidence in economic commentary and ways in which central banks can avoid falling prey to it in our own deliberations. 
• APRA released a letter providing further insight and guidance on common cyber control weaknesses. 
• The RBA published the August Payments Systems Board Update.  

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Parliamentary Update:

• The Consumer Data Right Action Initiation Bill (Treasury Laws Amendment (Consumer Data Right) Bill 2022) passed the Senate following a July motion from the Opposition that forced a vote on the Bill by this week.   
• Treasurer Jim Chalmers welcomed the Wage Price Index rising 0.8 per cent in the June quarter, to be 4.1 per cent higher through the year. The Treasurer said this is the first time in 15 years wages growth has hit ‘four for four’, with annual nominal wages growing by at least 4 per cent for four consecutive quarters. 
• Assistant Treasurer Stephen Jones released the Albanese Governments response to the independent review of continuous disclosure regime amendments.  
• Small Business Minister Julie Collins delivered an address to COSBOA’s launch of their State of Small Business data report in Canberra. 
• The Coalition ensured the passage of key legislation to expand the functionality of the Consumer Data Right and released a statement with the following comments:
  • ‘The Coalition supports a proportionate regulatory approach when the Government considers its next steps, particularly for smaller and regional banks, to ensure the CDR’s future rollout can continue with certainty and in a sustainable way. The Coalition remains open to sensible changes that could be brought forward to the Consumer Data Right to ensure appropriate phasing and proportionality, with certainty and accountability about forward work timelines.’ 

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Economic Update:

• Average weekly earnings for full-time employees grew by 4.6 per cent in the year to May 2024. This is the highest annual increase since May 2020 when it was 4.7 per cent, and the third highest since data collection began in 2012.  

• Labour force data shows that an additional 97,550 jobs were added to the labour market in the quarter of 2024, a growth of 0.7 per cent. 
• Over this period public sector jobs grew by 4.4 per cent while private sector jobs grew by 0.1 per cent. This comparative growth of public sector employment is reflective of two characteristics of the sector:
  • the volatility in public sector employment: The number of employed people has fluctuated between contractions of -9.7 per cent and growths of up to 16.7 per cent on a quarterly basis over the past five and a half years, and 
  • the relatively small levels of public compared to private sector employment: With just 14 per cent of jobs in the public sector, smaller growth values result in higher proportional growth figures. For example, in the December 2023 quarter the increase of 43,222 public sector resulted in a 2.2 per cent growth compared to 205,006 jobs in the private sector resulting in a growth of just 1.7 per cent. 

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Coming up next week:

Parliament/Regulators:  

• Both houses of parliament will be sitting.  

Data announcements: 

• 20/8 – Characteristics of Australian Business. 
• 22/8 – Labour Force, Australia, Detailed. 

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Upcoming Submissions:

Published submissions

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Upcoming Events:

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Selected Media:

• SMH –Coalition proposes relaxation of lending rules
• The Australian –Seek warns weaker Australian job markets will hurt earnings 
• SMH – The fight over $1.5 billion ‘gamer-changer’ that hasn’t lived up to the hype 
• AFR – US inflation slows again, clearing way for rate cuts 
• Reuters –New Zealand delivers first rate cut in over 4 years and flags more easing 
• The Guardian -Half of crypto ads on Facebook are scams or violate Meta’s policies 

Weekly Update