Weekly Update: 23rd Feb

Highlights this week:

• Announcement: The Greens to move an amendment in Parliament that would give the Treasurer the power to override Reserve Bank decisions. 
• In the media: ABA CEO Anna Bligh welcomed new data showing scam losses decreased by 29 per cent in the last six months of 2023.  
• Key data: In December 2023, total arrears sat at 0.91% of all loans compared to 1.44% in January 2019 

Quote of the week:
“Trust is hard to win but it’s very very easy to lose, we are in good shape but there is a lot more to do”  

– Ross McEwan, outgoing chair at Trans-Tasman Business Circle

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Parliamentary Update:

• Greens Senator Nick McKim announced that the Australian Greens would move an amendment in Parliament to retain s11 of the RBA Act which gives the Treasurer the power to override Reserve Bank decisions.
  • In Senate Committee hearings on this matter, the Coalition appeared to be open to supporting the Greens amendment, which was also supported by some former RBA Governors. 
  • Treasurer Jim Chalmers told the Sydney Morning Herald he would have to ‘consider the development’.  
• The Treasurer issued media releases on:
  • The Australian Competition Tribunal’s decision on the proposed ANZ-Suncorp merger. 
  • The December Quarter Wage Price Index release.  
• Assistant Minister Andrew Leigh issued a media release on non-compete clauses, noting ABA data showing that 1 in 5 Australian businesses (21 per cent) used non‑compete clauses for at least some of their employees in 2023.
  • The Assistant Minister said that looking into the use of these clauses is a top priority of the Albanese Government’s Competition Taskforce. Treasury will release an issues paper for public consultation in April. 
• The Albanese Government appointed Dr Craig Emerson and Ms Sally McMahon and reappointed Ms Katrina Groshinski as a part‑time Councillors to the National Competition Council each from 23 February 2024 until 17 August 2025. 
• WA Labor senator Louise Pratt announced that she will step down at next election

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Policy Update:

The ABA: 

• attended a Treasury roundtable to discuss the further tranches of the Delivering Better Financial Outcomes package of reforms 
• participated in a industry roundtable on the opportunities and impacts of Quantum Computing 
• hosted members and senior APRA team members led by Therese McCarthy-Hockey for a discussion on APRA’s 2024 priorities 
• met with Graeme Head, Secretary of the Department of Customer Service, to discuss progress on the interoperability program. 
• met with the Hon. Rose Jackson MLC, Minister for Housing and Homelessness, to discuss opportunities to support developer financing for affordable housing 

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Regulatory Update:

• ACCC – Australian Competition Tribunal authorises ANZ’s proposed acquisition of Suncorp Bank. Read more 
• RBA – Minutes of the Monetary Policy Meeting of the Reserve Bank Board. Read more 

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Economic Update:

• After rising during the first half of 2023, mortgage arrears began to slowly trend down in the latter half of the year. As at December 2023, total arrears sat at 0.91% of all loans compared to 1.44% in January 2019 (Figure 1).   

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Communications and Media:

• The ABA welcomed new statistics from the National Anti-Scam Centre that showed financial losses were down by 29 per cent in the last six months of 2023.  
• The ABA responded to the decision by the ACCC Tribunal on the ANZ-Suncorp saying the Government should reflect on the time it took for the decision to be made as part of its review into Australia’s merger laws.  
• ABA CEO Anna Bligh Bligh provided TV grabs for a Channel 9 Melbourne story on the risks of phishing scams.  

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Coming up next week

Parliament: 

• Cost of living hearing Canberra – 1/3 
• Dunkley Byelection – 3/3 
• Senate Economics, Electrification hearing – 21/2 
• Senate Economics, TLAB RBA Reforms 2023 hearing – 22/2 

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Upcoming Submissions:

Published submissions

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Selected Media:

• Courier Mail – Reported scam losses down as criminal gangs blocked from funnelling money out of Australia 
• The Australian – Regulation complexity is hurting bank customers, says NAB’s departing chief 
• AFR – Banking and business lobby blast 583-day wait for ANZ’s Suncorp deal 
• ABC – What happens now? Former treasurers and RBA governors say Australia’s government must not lose its power to overrule the Reserve Bank 
• AFR – ACCC probes monopoly-making Armaguard merger 

Weekly Update