Weekly Update: 4 October 2024

Highlights this week:

• Announcement: The ABA released a statement welcoming the extension of the RLO exemption for small businesses.
• In the Media: An ABA submission discussing banks’ ability to consider future income in their lending decisions was featured in the AFR.
• Key Data: Retail trade rose 0.7% month-on-month in August.

Quote of the week:
“Our relationship with China is full of complexity and it’s full of opportunity. We recognise that a more stable economic relationship between Australia and China is a good thing for Australian workers and businesses, investors and “The Government is extending the RLO exemption, allowing small businesses to continue to have access to the credit they need, when they need it. Whether it be to hire more staff or upgrade facilities, the Albanese Government will always back small business owners to grow their companies which power the national economy.”

– Assistant Treasurer, The Hon Stephen Jones MP. Joint media release with The Hon Julie Collins MP, 1 October 2024.

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Policy Update:

• The ABA participated in a workshop with the US Bank Policy Institute to discuss comparative approaches to combatting scams.
• The ABA made a submission to the Treasury consultation Scam Protection Framework – Exposure Draft Legislation. The ABA submission supported the policy intent of the exposure draft and provided recommendations for its further strengthening.
• On 4 October, the ABA appeared before the Parliamentary Joint Committee on Corporations and Financial Services Inquiry into Wholesale Investor and Wholesale Client Tests. The ABA discussed the impact of house price growth on the net asset test, and noted that we would welcome the opportunity to further respond in more detail to a Treasury consultation.
• The ABA met with:
  • FICA and Treasury to discuss the Regulatory Initiatives Grid.
  • S&P to discuss the potential changes to AT1s.

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Regulatory Update:

• ASIC released updated guidance for participants in the carbon market following Safeguard Mechanism reforms.

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Parliamentary Update:

• Assistant Treasurer Stephen Jones and Small Business Minister Julie Collins announced the extension of small business responsible lending obligations exemptions. The National Consumer Credit Protection Regulations 2010 (the Credit Regulations) which facilitates the exemption will be amended to extend the exemption for the two‑year period, ending 3 October 2026.
• Treasurer Jim Chalmers and Finance Minister Katy Gallagher announced the Final Budget Outcome for 2023–24, with an underlying cash surplus of $15.8 billion (0.6 per cent of GDP) which follows the $22.1 billion (0.9 per cent of GDP) surplus delivered in 2022–23.
• The Prime Minister, Assistant Treasurer and Assistant Minister Leigh made an announcement on shrinkflation in the supermarket and retail sector by strengthening the Unit Pricing Code with the aim to make it easier for Australians to make accurate and timely price comparisons.
• Federal Parliament returns next week from Tuesday to Thursday.
  • Draft legislation program – Senate
  • Draft legislation program – House of Representatives

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Economic Update:

• Balance on goods increased by $8m in August, with the total balance of goods at $5,644m, up from $5,636 in July.
• Retail trade grew 0.7% in August after also increasing in both June and July. The increase was driven by spending across all industries, other than household goods retailing.

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Coming up next week:

• Data:
  • 09/10 – Building Approvals, Australia
  • 11/10 – Monthly Business Turnover Indicator
• Parliament:
  • AML & Privacy legislation listed for debate in the House

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Upcoming Submissions:

Published submissions

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Upcoming Events:

The ABA invites you to join us for a briefing by Housing Australia on their latest ‘Housing Australia Trends and Insights Report’ in September, focused on improving housing outcomes for Australians to be held Tuesday 15 October from 2.00pm to 3.00pm.

To register, please email Nat Madden, Associate Director, Events at nat.madden@ausbanking.org.au

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Selected Media:

• The Australian – Identity thieves targeted as CommBank trial proves successful
• SMH – Property market finally slowing down as Australians save their tax cuts
• Yahoo Finance – Meta, Australian banks tout progress on taking down ‘celeb bait’ scam adsThe Guardian – UK banks given extra three days to delay payments in effort to beat scams
• SMH – Should it be easier for the banks to give you a home loan?

Warm regards,
The ABA Team