Weekly Update: 18 July 2025

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Highlights this week:

• Unemployment jumps to 4.3%.
• Jim Chalmers called the rise in unemployment “unwelcome but unsurprising”, arguing participation remains near record highs and reiterating that fiscal policy will stay “disciplined” while monetary policy does the “heavy lifting”.
• The RBA released a Consultation Paper as part of its Review of Merchant Card Payment Costs and Surcharging.
• ABA Banking Conference 2025 kicks off next Wednesday.

Quote of the week:
“…I’ll write to regulators across Government seeking specific, measurable actions to reduce‘It makes sense that consumers know the final price before they get to the checkout. Banks will work with the Government to provide Australians with more certainty and transparency on the costs of digital payments.’ compliance costs without compromising standards.”

– ABA CEO Anna Bligh, statement on surcharging announcement. 15 June 2025.

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Media & Communications Update:

• Provided a statement to multiple publications on the RBA’s Review of Merchant Card Payment Costs and Surcharging, saying ‘…The rules around surcharging are more than 20 years old and consumers rightly expect them to keep pace with changes in how they make payments.’
• Provided a statement and background to the AFR on the extension of the funding agreement with Armaguard.

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Parliamentary Update:

• Prime Minister Anthony Albanese wrapped up a six-day visit to China, telling reporters the trip will re-energise trade and investment after meetings with President Xi and Premier Li; the Coalition dismissed the journey as “indulgent”.
• G20 Finance Ministers and Central Bank Governors are meeting in South Africa with Treasurer Jim Chalmers in attendance.
• The Government rejected Meta’s request for exemptions from proposed AI-related privacy reforms following the tech giant’s concerns about restrictions on data scraping. Attorney-General Michelle Rowland stated major technology companies would not determine the direction of Australia’s privacy legislation.
• Both the House of Representatives and the Senate will reconvene next week for their first sitting since the May 2025 federal election.

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Policy Update:

• The ABA met with Treasury as part of their consultation on the expansion of the Home Guarantee Scheme and provided initial member feedback.
• ABA and member banks participated in AUSTRAC Guidance Working Group meeting & a separate meeting with AUSTRAC to discuss implementation timing for AML/CTF reforms.
• Hosted a Roundtable with the Basel Committee on Banking Systems (BCBS) Secretary General Neil Esho to discuss BCBS priorities.

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Economic Update

The unemployment rate rose to 4.3% in June 2025, this was above the consensus of a stable rate at 4.1%. Seasonally adjusted employment rose by 2,000 people, with the employment-to-population ratio remaining stable at 64.2%.

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Regulatory Update

• The Council of Financial Regulators and the Australian Competition and Consumer Commission released a Consultation Paper on Regulating Cash Distribution.

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Coming up next week:

• Politics:
  • 22/07 – Both houses of Parliament sitting
• Data:
  • 24/07 – Labour Force, Australia, Detailed
  • 24/07 – Payroll jobs

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Upcoming Submissions:

Published submissions

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Reports

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Selected Media

• Yahoo Finance – Major banks, Woolworths, Coles, Bunnings, Australia Post extend $25 million lifeline for Armaguard in cash win
• AFR – RBA, Treasury push for powers to save cash from Armaguard collapse
• ABC – Reserve Bank moves to end debit and credit card surcharges and cap fees for businesses
• AFR – Chalmers’ roundtable must rise to Australia’s economic challenges
• SMH – Unemployment at four-year high heaps pressure on RBA to ‘not make same mistake twice’
• AFR – US bankers shrug off Trump’s tariff blitz despite inflation alarm

Warm regards,
The ABA Team

Weekly Update