Weekly Update: 17th May

Highlights this week:

• Treasurer Jim Chalmers handed down the Federal Budget this week
  The ABA welcomed key initiatives in the budget including funding for scam prevention and Digital ID
• Announcement: Changes to the Payments System Regulation Act were passed through the House and now head to the Senate 
• Key data: Unemployment rose to 4.1% in seasonally adjusted terms in March 2024, while the participation rate grew to 66.7%. 

Quote of the week:
“…our Treasury forecasts for inflation factor in what we’re doing with the cost‑of‑living package and what we’re doing with the broader fiscal settings, and that is the main reason why they are anticipating that inflation will get back to the target band sooner than they were anticipating at Christmas time.” 

– Treasurer Jim Chalmers at the National Press Club address  

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Parliamentary Update:

• Treasurer Jim Chalmers delivered the 2024-25 Federal Budget, featuring measures to address cost of living concerns and the Federal Government’s headline Future Made in Australia policies. The Treasurer addressed the National Press Club and appeared in many other media appearances. 

• Leader of the Opposition Peter Dutton delivered his Budget-in-Reply speech on Thursday night announcing policies that would change to migration numbers and place restrictions on foreign home buyers.  

• The Digital ID Bill 2024 has finally passed both houses, without Coalition support. 

• Changes to the Payments System Regulation Act were passed through the House and now head to the Senate, within the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023. The Bill now heads to the Senate. 

• The Senate Committee final report on bank closures is now due to be tabled on 24 May, after an extension was granted this week.

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Policy Update:

The ABA:  

• attended the annual Financial Counselling Australia conference at the Perth Convention and Exhibition Centre. 
• As part of the FCA conference, ABA participated in a workshop on scams and provided an update on the Scam-Safe Accord. The NASC, AFCA, TIO and ASIC also provided updates alongside key consumer groups. 
• members participated in a workshop with the CDR Data Standards Body to assist in development of a new standards assessment framework 
• members participated in a briefing with AGD to learn further detail on the proposed reforms to the AML/CTF Act 
• members participated in a meeting with Treasury to assess potential for reductions in CDR compliance costs 
• met with ASIC to discuss changes to ASIC’s Reference Checking Protocol.  
• met with S&P to discuss ratings methodologies and economic insights. 
• met with the ICA to discuss insurability of housing.  
• met with APRA to discuss climate risk.  
• met with ISDA on FRTB-SA benchmarking.  
• met with ARNECC to discuss econveyancing. 
• ABA met with Visa on payments reform in Australia  
• ABA discussed scams response with Treasury  
• ABA and COBA jointly provided an update on the Scam-Safe Accord to the NASC Advisory Board 

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Regulatory Update:

• ASIC – ASIC announces 30 June 2024 focus areas and expanded program to support financial reporting and audit quality. Read more 

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Economic Update:

• Unemployment rose to 4.1% in seasonally adjusted terms in March 2024, while the participation rate grew to 66.7%. 
• Seasonally adjusted, wages grew 0.8% in the March quarter 2024. In the March quarter, the private sector was the main contributor to the overall increase in wages, rising 0.8% while public sector wages rose 0.5%.   
• Annual wage growth was 4.1%, down from the 4.2% annual rise recorded in the December quarter 2023. This is the smallest increase in annual wages since December quarter 2020.  

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Communications and Media:

• ABA CEO Anna Bligh spoke to ABC Sydney’s Drive program about the work by banks to support victims of financial abuse.  
• The ABA issued a media release on Tuesday night welcoming measures in the Federal Budget that further protect customers such as further investments to target scammers and the roll-out of Digital ID.  
• Anna Bligh spoke to ABC Radio National’s Patrica Karvelas on Thursday on the industry’s reaction to the Budget, including interest rate speculation and targeting scams.  
• Anna Bligh participated in a panel discussion the FW (Future Women) Federal Budget Dinner.

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Coming up next week:

Parliament/ regulators:  

• 20/5 Senate Select Committee, Adopting AI Inquiry 
• 24/5 Senate Branches report 
• 24/5 Senate Committee – Greenwashing Inquiry 
• 20/5 ASIC Hardship report TBC 

Data announcements:  

• 21/5 Monthly Employee Earnings Indicator 
• 23/5 Labour Force (Detailed) 

Events: 

• 21/5 Local cost of living forum, Member for Reid 
• 23/5 ABA/IBM webinar generative AI workshop for scams 

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Upcoming Submissions:

Published submissions

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Selected Media:

• ABC – Banks blocking thousands of abusive messages sent in transfer descriptions in apps 
• The Australian – Rate hopes surge as unemployment jumps to 4.1pc 
• SMH – Why this glimmer of hope has Wall Street very excited 
• AFR – This budget sees the return of government as saviour 

Weekly Update