Weekly Update: 22 March 2024

Highlights this week:

• Announcement: Treasurer Jim Chalmers released exposure draft legislation for multinationals to implement a global and domestic minimum corporate tax rate of 15 per cent. 
• Key data: Unemployment shrunk to 3.7% from 4.1% in January. 

Quote of the week:
“We’re keeping a keen eye also on employment numbers because as I have said before, we want to hold on to as many gains in the labour market as we can. What we need is greater confidence that inflation will return to the target band in a reasonable timeframe and will stay there.”

– RBA Governor Michelle Bullock speaking at the Monetary Policy Decision Media Conference 

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Parliamentary Update:

• Treasurer Jim Chalmers released exposure draft legislation for multinationals to implement a global and domestic minimum corporate tax rate of 15 per cent. 
• The Prime Minister authored an op-ed following the passage of paid-parental leave legislation, By 2026, every family with a new baby will be able to access a total of six months paid leave, shared between the two parents, and single parents will be able to access all 26 weeks. 
• Attorney General Mark Dreyfus announced that legislation to reform Australia’s system of administrative review had passed the House of Representatives. The Bills abolish the Administrative Appeals Tribunal (AAT) and replace it with a new Administrative Review Tribunal (ART). 
• Parliamentary Committees held public hearings on insurer’s responses to the 2022 major floods and residential electrification. 
• The Tasmanian State Election will be held tomorrow (Saturday 23 March).  

Government Relations: 

• The ABA travelled to Canberra to meet the Treasurer’s office, Financial Services Ministers office and Chair of the House of Representatives Economics Committee to discuss current issues in banking

Next week:

• Both houses of Parliament will sit.  
• The RBA and ACCC appear at a Senate Rural Affairs hearing on branch closures on Monday 24 March.  
• The House of Representatives Economics Committee report into Economic Dynamism is expected to be released next week

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Policy Update:

The ABA: 

• hosted a webinar on Lessons Learned from Real World Ransomware Attacks 
• provided a briefing to members of the Canadian Banking Association on Australia’s approach to tackling scams. 
• ATO working group meeting discussing the ATOs priorities for supervision of banks  
• CEO Anna Bligh met with CEO, Chair and President of CAFBA 
• met with NSW Reconstruction Authority  
• met with the Actuaries Institute of Australia  
• met with the Real Estate Institute of Australia 
• attended the FINSIA’s NSW Emerging Leaders Forum 2024 event. In attendance was ABA Data & Finance Analyst Angus Laurie, ABA Policy Analyst Mitchell Frater-Baird, ABA Associate Director, Policy Arad Moradian and ABA Policy Analyst Emily Gamaroff.

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Regulatory Update:

• Address by ASIC Commissioner Alan Kirkland – Crypto and digital assets: policy, regulation and innovation. Read more  
• ASIC – Scam alert: Scammers are using fake warning banners on imposter websites. Read more 
• RBA – Statement by the Reserve Bank Board: Monetary Policy Decision. Read more 
• RBA – Released Financial Stability Review. Read more

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Economic Update:

• In February, unemployment shrunk to 3.7% from 4.1% in January. In seasonally adjusted terms:
  • Employed people grew to 14.3m from 14.2m (+0.8%) 
  • Unemployed people reduced to 548,300 from 600,200 (-8.7%) 
  • Monthly hours worked in all jobs increased to 1,933 million from 1,879 million (+2.8%) 

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Communications and Media:

• The ABA:
  • responded to a number of queries from media on least-cost routing, saying the banks stand ready to support merchants utilise LCR if they wish to do so with 65 per cent already taking it up.

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Coming up next week:

In the media:  

• 26/3 ABA CEO Anna Bligh to speak at the AFR Banking Summit  

Parliament/ regulators:  

• 25-31/3 Parliament sitting (both Houses) 
• 25/3 Senate Regional/Rural Bank Closures Hearings (RBA, ACCC appearing) 

Data announcements:  

• 27/3 Australian National Accounts: Finance and Wealth and Monthly CPI Indicator 
• 28/3 Monthly ADI Labour Force (Detailed,) Job Vacancies and Retail Trade 

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Upcoming Submissions:

Published submissions

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Selected Media:

• The Australian – RBA keeps rates on hold at 4.35pc amid inflation watch  
• AFR – This is why the RBA is no longer warning of another rate rise 
• The Age – $80 million in scams prevented as NAB rolls out new payment alerts 
• AFR – NZ tries to break grip of big four across the Tasman. 
• ABC news (US) – Apple sued by Biden administration in landmark case over iPhone monopoly 

Weekly Update