Weekly Update: 11.11.2022

“We’ve also seen a reduction in the number of complaints about financial hardship. And a lot of that is because of the, you know, the really great work that the banks have done during the COVID period to support consumers and small business.”

–    AFCA CEO David Locke, Senate Estimates, 9 November 2022

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Scams Week Update:

• The ABA has been heavily involved in Scams Awareness Week, raising awareness of PayID and outlining the work the industry is doing to protect customers from scammers.
• CEO Anna Bligh joined Assistant Treasurer Stephen Jones and industry leaders in Canberra for a doorstop interview, launching a national anti-scams centre and Scams Awareness Week.
• Anna also appeared across national and regional TV, print and radio, highlighting the broad spectrum of scams issues, including farm scams, ongoing bank support and investment in cybersecurity, and legislative reform.
• Behind the scenes, the ABA policy team have been leading working groups and stakeholders through the Optus and Medibank data breaches.
• The ABA policy team attended the Interbank e-security and e-fraud forums earlier today.

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“The bank robbers of the 21st century do not use sawn-off shotguns – they are sitting at a computer trying to get into your account and trying to trick you into letting them in.”

– Anna Bligh, ABC Radio Melbourne Drive, 8 November 2022

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Parliamentary Update:

• The NSW Government’s First Home Buyer Choice legislation passed the NSW Parliament yesterday. The new laws mean from this weekend first home buyers can choose to pay up-front stamp duty or a smaller annual land tax of $400 plus 0.3% of the property’s land value. The scheme won’t come into effect until January 16, so those who buy before then will get a refund on their stamp duty if they want to take up the land tax option.
• The Privacy Legislation Amendment (Enforcement and Other Measures) Bill 2022,  which will increase penalties for certain data breaches, passed the House of Representatives. A Senate Inquiry on the Amendments will report on 22 November 2022.
• Industrial Relations Minister Tony Burke achieved the support of the lower house passing the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 with 150 Government amendments.  
• Senate Estimates took place, with ASIC, AFCA, the ACCC, and the RBA making key appearances. Read ASIC Chair Joe Longo’s opening statement.
• The House and Senate return on 21 November for the last two sitting weeks of the year.

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Regulatory Update:

• The design and distribution obligations (DDO) regime recently marked its first full year in operation. ASIC Deputy Chair Karen Chester wrote companies need to take a consumer-centric approach across a financial product’s lifecycle, warning that ASIC would be monitoring whether firms collect and understand data about the outcomes of their product distribution and who their products are getting to.
• The RBA released an analysis of household consumption of debt, finding that middle-income households borrow more for non-residential income purposes. This has no meaningful implication for macro-financial stability given these households tend to be well-resourced.

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Economic Update:

• RBA Deputy Governor Michelle Bullock gave an economic update to the society of Australian Business Economists. Key points:
  • the GDP of our major trading partners is below pre-pandemic levels,
  • the current La Nina weather event is likely to contribute to more price disruptions but not have a major effect on overall economic growth; energy prices will pick up through 2023.
  • wage growth remains consistent with the inflation target.
  • RBA sees inflation peaking at the end of 2022 due to easing supply chain constraints before returning to the RBA’s target band in 2023.
  • Future uncertainties include the international environment, wage and price-setting behaviour, household consumption and energy and supply shocks.
• US Stocks surged after slower-than-projected price growth spurred bets the Federal Reserve could downshift its aggressive rate-hike path. Headline US inflation was 7.7%, the lowest since January.
• Household spending continues to increase, up 28% over the past year. Spending was driven by clothing & footwear (+73%), hotels, cafes & restaurants (+61%), transport (+51%) and recreation & culture (+37%).  By comparison, spending on food (+3%), and alcoholic beverages & tobacco (+4%) were little changed.  

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november 11Weekly Update