Weekly Update: 15.07.22

“Unfortunately for many, a natural disaster can turn into financial disaster and customers are encouraged to talk to their bank, as soon as they are able, and find out about the assistance that may be available to get them through this tough time.”

– ABA CEO Anna Bligh, Sky News AM Agenda with Laura Jayes, 13/7/22

Parliamentary Update:

• Treasurer Jim Chalmers announced that the Jobs and Skills Summit will be held at Parliament House in Canberra on 1‑2 September. It was also announced that the outcomes of the Summit will inform the Employment White Paper, which will invite submissions and engage the wider community over the next 12 months.
• Assistant Treasurer Stephen Jones addressed the Responsible Lending and Borrowing Summit, stating that the Federal Government won’t be revisiting RLOs, will remain firm on consumer rights (strengthen action against payday lenders), and will treat BNPL as a credit product, consulting on regulation in the sector.
• The Queensland Premier has called for an extra national cabinet meeting amid the nation’s third COVID wave.
• The Prime Minister has so far resisted calls to reinstate pandemic leave disaster payments, and referred to budget pressures and decisions of the former government.

Communications:

• The ABA’s national anti-scams campaign commences Monday 18 July, encouraging customers to use PayID to protect them against scams. The campaign will feature outdoor, online and on radio.
• The ABA is encouraging all flood impacted customers particularly those in Sydney and South-Eastern NSW to contact their bank to find out about support that may be available. 

Economic Update:

• Unemployment fell to 3.5% in June 2022. Bjorn Jarvis, head of labour statistics at the ABS, said: “This is the lowest unemployment rate since August 1974, when it was 2.7 per cent and the survey was quarterly.”
• Inflation in the United States lifted to 9.1% — the highest rate in four decades. The rise was driven by broad-based price increases in energy, food and rent.
• Sri Lanka’s crisis is set to deepen after President Gotabaya Rajapaksa fled the country to the Maldives. Sri Lanka is currently seeking bridge financing to restore the flow of food and fuel to the population. The IMF is awaiting a new government to form before it can take a submission on debt restructuring to bondholders. The Sri Lankan dollar bond dropped to 26.8 US cents.
• China’s banks have detailed 2 billion yuan of loans at risk as homebuyers refuse to pay mortgages on unfinished homes. Fears are growing over a potential spillover into the wider financial sector –  with one source estimating up to $AUD 438 billion in loans could be impacted.

Regulatory Update:

• The Treasurer announced that ACCC Deputy Chairperson Delia Rickard’s term would be extended, and that long-time consumer rights advocate Catriona Lowe has been nominated to take up the position on 27 January 2023.
• ACMA now requires all telecommunications providers to identify, trace and block SMS scams; proactively manage and report SMS scams; share information with other mobile providers; and report identified scams to authorities.
• These rules follow separate new anti-scam rules that came into force on 30 June 2022, requiring telecommunication providers to use multi-factor authentication before approving high-risk customer transactions, including SIM swap. Fines of up to $250,000 will apply for breaches.

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Weekly Update