Weekly Update: 03.02.23

“Markets built in partnership through the efforts of business, labour and government are still the best mechanism we have to efficiently and effectively direct resources.”

– Treasurer Jim Chalmers, ‘Capitalism, After The Crises’, The Monthly, Feb 2023

Parliamentary Update:

• Treasurer Jim Chalmers outlined a new economic approach in an essay for The Monthly. In his view, ‘values and value’ should guide investment, not just profits. Greater partnerships, and broader wellbeing goals (on top of economic metrics) should improve future resilience, get better outcomes, and protect democracy.
• After some mixed reactions to the essay, the Treasurer penned an AFR op-ed clarifying his points. 
• Small Business Minister Julie Collins wrote an op-ed on the challenges that small business operators face, and mental health support services that are available. 
• Assistant Treasurer Stephen Jones today announced a foundational step in regulating the crypto sector with a consultation for token mapping, due 3 March, 2023. 

“ [A recent Treasury] report’s survey revealed just over one in five small business respondents reported having been diagnosed with a mental ill-health condition by a doctor or health professional in recent months.” 

– Small Business Minister Julie Collins

• Minister Collins conducted a doorstop interview with Senator Tony Sheldon is Lismore on flood support, before a series of community meetings (see Policy section below).  
• Assistant Treasurer Stephen Jones welcomed an ACCC crackdown on social media influencers, particularly when it comes to product endorsements.
• The Prime Minister announced:
  • The commencement of ten days paid domestic and family violence leave for Australian workers 
  • That more than 35,000 Pacific Australia Labour Mobility (PALM) workers are now in Australia, 6 months ahead of schedule
  • The Government’s National Cultural Policy 
• The NSW Government issued an RFP to establish a panel of lenders for the Shared Equity Home Buyer Helper Scheme

Regulatory Update:

• ASIC’s new structure will be made public later this February. Designed to cut bureaucracy and deliver faster decision-making, the new structure is aimed at streamlining operations. 
• The RBA’s Marion Kohler (Head of Economic Analysis) and Tom Rosewall (Deputy Head of Economic Analysis) appeared before the Senate Select Committee on the Cost of Living. They outlined an expectation that inflation has already peaked at 8% in December, and that inflation was driven by supply-side issues. 
• APRA announced the appointment of four new Executives, including two in newly created roles. The Executive Director of Technology and Data role has been created to strengthen APRA’s capability in this area and a Chief of Staff role has been created to align its communication and stakeholder teams. 
• APRA released its 2023 policy and supervision priorities with an emphasis on embedding recent reforms. Policy priorities include completing financial and operational resilience reforms, modernising the prudential architecture and reviewing core standards. 
• The RBA will update the $5 banknote to honour the culture and history of the First Australians, replacing the portrait of Her Majesty Queen Elizabeth II.  

Economic Update:

• Retail turnover declined 3.9% in seasonally adjusted terms between November and December 2022 (the first decline in 2022) but was up 7.5% from December 2021. The annual increase is consistent with recent year-on-year increases, but more subdued than increases seen post-GFC.  

Turnover of retail trade, December 2012 – December 2022, $m

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