Weekly Update: 19 July 2024

Highlights this week:

• In the media: ABA CEO Anna Bligh spoke to ABC Radio Brisbane about financial abuse.
• Key data: The seasonally adjusted unemployment rate rose to 4.1% in June.

Quote of the week:
“A competitive market is one that delivers the best results for as many people as possible. When done right, it creates a race to the top to deliver the best service possible. That clearly should be the aim of any reforms to employment services – innovation to support a dynamic and inclusive labour market where workers, businesses and communities can thrive.”

– The Hon Dr Andrew Leigh MP. Assistant Minister for Competition, Charities and Treasury, Assistant Minister for Employment. Adress to the Jobs Australia Conference, 17 July 2024.

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Media & Communications Update:

• The ABA responded to a number of media queries about what banks are doing to protect Australians from scammers.

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Policy Update:

• ABA Policy Teams:
  • met with the Actuaries Institute on Housing Insurance affordability.
  • met with the US Department of Treasury Office of the Comptroller of the Currency.
• The ABA and COBA sent a joint letter to Minister Stephen Jones raising concerns about the Consumer Data Right and passage of the action initiation legislation.

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Regulatory Update:

• APRA released a response to the consultation on proposed minor amendments to the prudential framework.
• The RBA published their July 2024 Bulletin.
• APRA announced it will reduce Westpac’s operational risk capital add-on by $500 million.

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Parliamentary Update:

• The Parliamentary calendar was light this week, with attention focused on US Politics and developments in the Australian trade union movement.
• A report authored by Allan Fels on NSW tolls roads was released. The AFR reports that ‘Transurban has six months to renegotiate tolling contracts on almost a dozen motorways it operates in Sydney or have them restructured, after an independent review recommended the NSW government take back control and reduce bills for drivers’.
• On Monday, Treasurer Jim Chalmers held a press conference in Canberra and discussed tax cuts and cost‑of‑living relief.
• Assistant Minister Andrew Leigh delivered a speech at the Jobs Australia Conference, titled ‘Innovating for impact: strategies for transforming communities’.
• The House Standing Committee on Economics held public hearings in Devonport, Tasmania as part of its inquiry into insurers’ responses to 2022 major floods claims.
• The Senate Select Committee on Adopting Artificial Intelligence held public hearings in Canberra.

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Economic Update:

This week the ABS released the June Labour Force Statistics which showed:

• The seasonally adjusted unemployment rate rose to 4.1% in June, up 0.1% compared to May.

• The number of people employed increased by approximately 50,000 people while the number of unemployed people grew by 10,000. This movement along with other changes to the number of people in the labour force led to a participation rate of 66.9% which is only 0.1% below the November 2023 record of 67%.

The ABS also released March Building activity illustrating:

• Total dwelling commencements rose 0.5%.
• New private sector commencements rose 4.8% to 25,072 dwellings.

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Coming up next week:

Parliament/Regulators:  

• Parliament is still on their winter break, returning 12 August. 

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Upcoming Submissions:

Published submissions

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Upcoming Events:

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Selected Media:

• The Australian – Jobs data ‘no barrier’ to rate hike
• The AFR – How the RBA become a global outlier in its inflation fight
• SMH -Young people say they don’t need a bank
• ITBrief -Australian banks lead in AI adoption 
• ABC – Telstra fined 1.5m for leaving customers vulnerable to scams

Weekly Update