Weekly Update: 18 October 2024

Highlights this week:

• Announcement: The RBA released an issues paper inviting stakeholders to provide feedback on current Merchant Card Payment Costs and Surcharging.
• In the Media: ABA CEO Anna Bligh was featured in an interview with 6PR discussing the proposal to ban surcharging.
• Key Data: Unemployment rate remains steady at 4.1%.

Quote of the week:
“Australians are actually interacting with their bank more than ever before, thanks to the ease and convenience of digital banking.  This is further evidenced by payments by mobile wallets now outstripping total ATM cash withdrawals.” 

– ABA CEO, Anna Bligh. Statement on points of presence data, 16.10.24. 

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Media & Communications Update:

• A statement was provided to The Australian on the rise in scams targeting businesses, saying ‘banks continue to work around the clock to protect Australians and they will continue to invest record amounts in the latest scam fighting technology.’ 
• The ABA commented on the release of the APRA points of presence data, highlighting the shift in how Australians access banking services. 
• Statements were provided to a variety of media outlets on the proposal to ban surcharges on debit cards saying “The RBA’s rules allowing retailer surcharging are more than 20 years old, they are no longer fit for purpose given almost 90 per cent of payments are now made digitally. ABA CEO Anna Bligh provided TV grabs to ABC and 7 News. 

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Policy Update:

• The ABA convened a Housing Australia briefing for members. 
• ABA attended Treasury’s National Small Business roundtable to discuss the National Small Business strategy.
• The ABA met with:
  • COBA to discuss the CFR review.
  • ISDA to discuss FRTB-SA benchmarking.
  • Department of Agriculture, Fisheries and Forestry to discuss agriculture and drought policy.  
  • NSW Reconstruction Authority to discuss preparedness and response in relation to the upcoming high risk weather season. 
• ABA CEO Anna Bligh spoke at the Insurance Council of Australia conference.

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Regulatory Update:

• APRA released its 2023-24 annual report. 
• The RBA published a research discussion paper on How Do Households Form Inflation and Wage Expectations? 
• APRA released a material service provider register template in response to the CPG Operational Risk Management consultation. 
• The RBA Assistant Governor (Economic) Sarah Hunter, gave a speech on Inflation Expectations – Why They Matter and How They Are Formed at the Citi Australia and New Zealand Investment Conference. 
• The RBA published its October quarter bulletin.  

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Parliamentary Update:

• Surcharging: The Prime Minister, Treasurer and Assistant Treasurer announced that the Government is prepared to ban debit card surcharges, subject to further work by the Reserve Bank of Australia (RBA) from 1 January 2026. Additionally, $2.1 million of new funding for the Australian Competition and Consumer Commission (ACCC) was unveiled to tackle excessive surcharges.  
• Home lending inquiry: The Senate Economic References Committee held its first of two public hearings as part of its inquiry into ‘financial regulatory framework and home ownership’. The second of two public hearings will take place on 24 March. Please contact the ABA GR team for further information if helpful.  
• Unfair trading practices: The Prime Minister, Treasurer and Assistant Treasurer also announced the banning of some unfair trading practices under the Australian Consumer Law. This includes subscription traps, drip pricing, deceptive and manipulative online practices that aim to confuse or overwhelm consumers, and dynamic pricing where a product’s price changes during the transaction process. Following consultation, the Government will work with states and territories to settle a final reform proposal in the first half of 2025. 
• Employment: The Prime Minister, Treasurer and Employment Minister announced that ABS Labour Force figures show well over a million jobs (1,039,300) have now been created since Labor came to office in 2022. 
• The House of Representatives Economics Committee is releasing a report today into the inquiry into insurers responses to 2022 major floods claims.

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Economic Update:

• In September 2024, there were 14.52 million people employed in the Australian economy, up from 14.48 million in August. 
• Despite the increase in number of people employed, the unemployment rate remained the same as a result of the total number of people in the labour force also increasing.

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Coming up next week:

• Data:
  • 24/10 – Labour Force, Australia, Detailed 
  • 25/10 – Australian System of National Accounts 
• Parliament:
  • 22/10 – Public hearing: Privacy and Other Legislation Amendment Bill 2024 [Provisions] 
  • 22/10 – Public hearing: Capability of law enforcement to respond to cybercrime 
  • 24/10 – Public hearing: Senate inquiry into ‘Financial regulatory framework and home ownership’ 
  • 25/10 – Public hearing: Review of the Australian Securities and Investments Commission Annual Report 2023 

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Upcoming Submissions:

Submission this week: Submission to the South Australian Land Titles Office on the Model Operating requirements.

Published submissions

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Upcoming Events:

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Selected Media:

• The Australian – Industry wants more than just planned debit card fee axed 
• SMH – The new breed of social media sleuths bypassing the regulators 
• The Guardian – Strong Australian jobs figures lower expectations of pre-Christmas interest rate cut 
• ABC – When the RBA cuts interest rates, housing affordability relief may only be temporary for first home buyers 
• AFR – Payment giants threaten to halt refunds for fraud 
• AFR – Tech giants, major banks warn Labor to tread lightly on AI regulation 

Warm regards,
The ABA Team

Weekly Update