Weekly Update: 6 September 2024

Highlights this week:

• In the Media: CEO Anna Bligh spoke to ABC Sydney about surcharges.
• Announcement: The ABA launched a new fact sheet to support small businesses who are struggling to meet repayments.
• Key Data: GDP rose 0.2% in the quarter and 1.0% over the year.

Quote of the week:
“Accordingly, the Board’s message following its meeting only a few weeks ago was that it is premature to be thinking about rate cuts. Circumstances may change, of course, and if economic conditions don’t evolve as expected, the Board will respond accordingly. But if the economy evolves broadly as anticipated, the Board does not expect that it will be in a position to cut rates in the near term.”

– Michele Bullock, Governor of the Reserve Bank of Australia. Keynote Address to the Anika Foundation Fundraising Lunch. 5 September 2024. 

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Media & Communications Update:

• As part of the ABA’s ongoing focus on providing information to customers facing financial hardship, we released a factsheet outlining support options for small businesses who might be struggling to make repayments.
• The ABA’s campaign in the fight against scammers continued this week. Campaign assets can be accessed here.

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Policy Update:

• ABA CEO Anna Bligh participated in the Advisory Committee meeting of the National Anti-Scams Centre.
• The ABA hosted APRA for a briefing on its annual plan to members.
• The ABA met with:
  • APRA in respect of ARS117.
  • APRA to discuss APRA’s corporate plan. 
  • AICVIC on ABA’s efforts regarding scams and the rollout of confirmation of payee across the industry (AICVIC = Australian Institute of Conveyancers Victorian Division).
  • Treasury to discuss changes to bank’s APRA levies for FY25. 
  • Treasury on the CFR review of mid-tier and smaller banks.
  • Attorney-General’s Department to discuss timeline and details for AML/CTF reforms.
  • Treasury to discuss scope of CDR obligations.
  • Dept of Finance to discuss stakeholder engagement model for Digital ID strategy.
  • Australian Payments Network to discuss perspectives on cheques and BECS retirement.

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Regulatory Update:

• The Council of Financial Regulators released the September quarterly statement.

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Parliamentary Update:

• On 5 September, the following Bills received Royal Assent: Net Zero Economy Authority (Transitional Provisions) Act 2024; and Telecommunications Amendment (SMS Sender ID Register) Act 2024.
• Former federal Labor leader Bill Shorten announced his retirement from politics after 17 years in Parliament.
• RBA Governor Michele Bullock delivered a speech on ‘the high cost of inflation’, touching on the monetary policy environment, reducing inflation and household finances.
• Minister for Industry and Science Ed Husic announced two new government initiatives to ensure the safe use of AI in Australia.
• Treasurer Chalmers held a press conference on the June quarter National Accounts, RBA reforms and broader economic conditions.
• The Senate Economics Legislation Committee tabled their report following their inquiry into the Treasury Laws Amendment (Build to Rent) Bill 2024 and Capital Works (Build to Rent Misuse Tax) Bill 2024 [Provisions].
• The Treasurer and Minister for Social Services Amanda Rishworth announced further cost‑of‑living relief measures for Australians which will roll out from September.
• Hansard transcripts were released following the House of Representatives Standing Committee on Economics inquiry into Australia’s four major banks. Read here; day one and day two.
• The ABA is closely monitoring the passage of key industry Bills as we head towards the final sitting weeks of 2024. These include:
  • PSRA legislation, with the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Superannuation (Better Targeted Superannuation Concessions) Imposition listed for debate on Thursday next week.
  • The AML/CTF regime reforms.
  • Reforms to the Privacy Act following the Government’s review of the report; and
  • The scams mandatory industry codes. 

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Economic Update:

National Accounts were released on Wednesday, key economic indicators include:

• The Australian economy rose 0.2% in the quarter and 1.0% over the year in seasonally adjusted chain volume measures.
• Productivity rose 0.5% over the year.
• Household saving to income ratio remained at 0.6%.

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Coming up next week:

Parliament/Regulators:  

• Both houses resume sitting.
• TLAB (Better Targeted Superannuation Concessions and Other Measures) Superannuation (Better Targeted Superannuation Concessions) Imposition listed for debate on Thursday 12/09 next week.
• Potential PJC inquiry into financial services regulatory framework in relation to financial abuse, listed for next Friday 13/06. If you have any questions, please reach out to Prudence Middleton. 

Data announcements: 

• 09/09 – Monthly Business Turnover Indicator
• 10/09 – Total Value of Dwellings

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Upcoming Submissions:

Published submissions

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Upcoming Events:

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Selected Media:

• The Guardian – UK reportedly poised to slash amount banks must refund fraud victims
• The Australian – Why RBA’s ‘best medicine’ remains a bitter pill
• AFR – Consumer slowdown hits profits and GDP growth
• Yahoo Finance – Major banks push to abolish ‘outrageous’ charge for Aussies
• SMH – Small businesses hit with $7 billion in unexpected costs

Weekly Update