Weekly update: 06.04.23

“You haven’t been able to use a credit card to gamble in the physical world for more than two decades. It is in the online gambling world that unfortunately credit cards are still allowed to be used. The ABA’s view, and the one we put to this inquiry, is that credit cards should not be used for gambling, that you shouldn’t be getting into debt with gambling and that the government should move to require those gambling operators to put a block on credit card use in their services,”

– ABA CEO Anna Bligh speaking to ABC TV at the inquiry into online gambling.

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Parliamentary Update:

• Treasurer Jim Chalmers conducted an interview with ABC PM following the RBA’s rate decision.
• Housing Minister Julie Collins issued a media release on National Housing Finance and Investment Corporations’ ‘State of the Nation’s Housing 2022-23’ report, and the Housing Australia Future Fund Bill that is currently before the Senate. 
• The Federal Opposition conducted a party-room meeting and finalised their position on the Federal Government’s proposed Aboriginal and Torres Strait Islander Voice. 
• Assistant Minister Andrew Leigh conducted a press conference with the OECDs Deputy Director of Tax David Bradbury discussing multinational tax avoidance, petroleum resource rent tax, and the OECD two-pillar solution. 
• Dr Leigh also addressed the COSBOA National Small Business Summit in Melbourne.
• Treasury announced an independent review of the Modernising Business Registers (MBR program). A Terms of Reference has been issued to guide the review.

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Policy Update:

• ABA CEO Anna Bligh and Head of Customer Policy Amanda Pullinger (pictured below on screen) appeared at a public hearing on online gambling, conducted by the House Standing Committee on Social Policy and Legal Affairs. Watch the session here.

• The ABA participated in a filmed panel discussion with the Victorian Small Business Commissioner, financial counsellor, mediator and the ATO on ways to support small businesses struggling with debt.
• During the week, the ABA also attended:
  • a Roundtable conducted by Assistant Minister Andrew Leigh and David Bradbury, Deputy Director of Tax at the OECD. 
  • Energy Efficiency Council’s launch of their Clean Energy, Clean Demand report and heard from an expert panel and the Assistant Minister for Climate Change and Energy, Senator the Hon Jenny McCallister.
  • COSBOA National Small Business Summit held in Melbourne and heard from several members of the small business community on the challenges and opportunities facing the sector. 

• APRA has announced a public consultation on banks’ ‘points of presence’ data. 
• The ACCC issued a statement about how it is seeking further views on ANZ’s proposed acquisition of Suncorp Bank.
• The RBA released its Financial Stability Review which included analysis of household and business finances and modelling of financial outcomes of Australian households under different economic scenarios.

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Economic Update:

• After growing sharply through 2022, the value of retail trade remains subdued with total retail turnover in February 2023 just over $35b. This is a 6% increase from February 2022 but a 2% drop from the retail turnover peak in November 2022. 

Figure 1: Retail turnover, Australia, March 2018 – February 2023, $m 

• Home loan refinancing remained strong in February 2023 with 48,874 housing loans refinanced compared to 36,604 new loans. This continues a trend since June 2022 (one month after the first cash rate increase) of refinancing being more popular than new loans. We have only seen refinancing activity surpass new lending activity once before in the history of this data series – in the middle of 2020 when interest rates first started to reduce significantly (Figure 1). 

Figure 2: New housing lending & refinanced loans, owner-occupiers and investors, July 2019 – February 2023, N 

• Externally refinanced loans remain substantially higher than internally refinanced loans. In February 2023 more than twice as many loans were externally refinanced compared to internally refinanced (33,848 compared to 15,026). 

Figure 3: Externally and Internally refinanced loans, owner-occupiers and investors, July 2019 – February 2023, N 

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Communications and Media Update:

• ABA CEO Anna Bligh appeared on the 7:30 Report, ABC TV News Breakfast, Channel 10 and other broadcast media on topics including the RBA’s decision to pause interest rates, the parliamentary inquiry into online gambling, and cost of living issues.

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Upcoming Events:

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Submissions Lodged:

• Data Standards Body – Decision Proposal 288 (Non-Functional Requirements) 
• Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 
• Privacy Act Review 

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Upcoming Submissions:

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Selected Media:

• AFR – How the big banks help Australians stop themselves from gambling 
• ABC – Betting inquiry sees wagering companies squirm over blocking winning gamblers  
• AFR – RBA hits pause, for now 
• Banks battle for record savings drives bonus rates to near-decade high 

Weekly Update