Weekly Update: 01 March

Highlights this week:

• In the media: ABA calls out Victorian Greens state banking levy proposal as ‘ill-thought-out’ and ‘reckless.’
• Key data: Monthly CPI remained at 3.4% in January 2024

Quote of the week:
“Inflation is still our major concern, but at some stage the balance of risks in our economy and in the global economy is going to shift from inflation to growth…”  

– Treasurer Jim Chalmers speaking in an interview with Patricia Karvelas, RN Breakfast, ABC

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Parliamentary Update:

• Treasurer Jim Chalmers welcomed the latest Monthly Consumer Price Index Indicator, showing annual inflation of 3.4 per cent in the 12 months to January 2024. He noted this as the equal lowest measure in more than two years.
• The Treasurer addressed international counterparts in Brazil as part of the G20 Finance Ministers and Central Bank Governors meetings in Sao Paulo. The Treasurer also warned that ‘the soft landing we seek at home and in the global economy is assumed but not assured’.
• The Treasurer appeared on ABC RN Breakfast, coving topics including the economic growth outlook and proposed RBA reforms.
• Housing Minister Julie Collins announced that legislation to establish a national shared equity scheme, Help to Buy, has passed the House of Representatives. Government negotiations with the Australian Greens continue with passage through the Senate uncertain at this stage.
• Assistant Treasurer Stephen Jones announced that from 2 April 2024, consumers will be able to lodge claims for compensation under the Compensation Scheme of Last Resort (CSLR) with payments to follow for eligible consumers.
• The Prime Minister and parliamentary colleagues paid tribute to Victorian Labor Senator Linda White, upon the news of her death following a health battle.
• ABA visited Canberra and met the Co-Chairs of the Parliamentary Friends group against scam prevention to inform them about the ABA’s Scam-Safe Accord initiatives and recent data demonstrating scam losses have declined
• The ABA also met key ministerial and shadow ministerial offices in relation to the ABA’s work to ensure continued access to cash

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Policy Update:

The ABA:

• ABA met with Department of Treasury who wanted to understand lending to customers for prefabricated housing constructions
• attended a meeting of the National Anti-Scam Centre – Emerging Issues and Responses Working Group
• attended their monthly liaison meeting with AusPayNet
• engaged with IBM Global Head of Regulatory affairs in a discussion on comparative approaches to AI regulation
• ABA and members received an update from NABERS on their progress on commercial real estate emissions reporting

Submissions:

• APS/APG 117 Revisions to the framework on IRRBB
• ARS 117.0 and ARS117.1 IRRBB reporting standards
• AASB Sustainability Disclosures Exposure Draft

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Regulatory Update:

• ACCC – The ACCC will not oppose Westpac Banking Corporation’s proposed acquisition of HealthPoint. Read more
• ACCC – supermarkets inquiry invites consumer, farmer and industry views. Read more
• APRA – released superannuation statistics for December 2023. Read more
• APRA – released quarterly private health insurance statistics for December 2023. Read more
• RBA – Appointment of Chief Operating Officer. Read more
• RBA – Payments System Board Update: February 2024 Meeting. Read more

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Economic Update:

• Monthly CPI remained at 3.4% in January 2024.
• Household deposits on the books of ADIs continued to grow in January 2024, and now sit at $14.55b, 7.9 per cent higher than in January 2023.
• Retail trade grew, in seasonally adjusted terms, between December 2023 and January 2024. Over the past year, however, it has remained fairly flat, Figure 1.

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Communications and Media:

• ABA opposes Victorian Greens proposal to introduce a state banking levy proposal, saying it would do nothing but harm the Victorian economy, investment and local banking jobs. 
• Anna Bligh sat down with ABC Business to discuss what the banks are doing to support small businesses transition to Merchant Choice Routing.

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Coming up next week:

Parliament/ regulators:  

• 5/3 – Senate Economics Committee – Help to Buy Bill 
• ASEAN – Australia Special Commemorative Summit in Canberra, Melbourne 

Events: 

• 8/3 International Women’s Day  

Data announcements:  

• 4/4 – Business Indicators 
• 6/4 – National Accounts 
• 7/4 – International Trade in Goods 

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Upcoming Submissions:

Published submissions

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Selected Media:

• The Australian – CPI slowdown to help borrowers  
• The Age – Greens’ billion-dollar tax plan to fund Victoria’s cost-of-living relief 
• ABC – Older Australians ‘left behind’ by increasingly cashless society as banks fast track end of cheques 
• Reuters – NZ central bank holds rates, tones down hawkish stance 
• ABC – Facebook Marketplace has become the home of scammers. The problem may be getting worse 

Weekly Update