Weekly Update: 24.02.23

“The consultation paper that we’re releasing today sets out our proposed definition of the objective to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way“

– The Hon Stephen Jones MP Assistant Treasurer and Minister for Financial Services

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Parliamentary Update:

• The Prime Minister delivered a National Press Club address speaking on national and economic security, among other matters.
• Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones announced they had opened consultation on legislating an objective for superannuation. The consultation paper and information about the consultation process are available here. Submissions close on 31 March 2023.
• The Treasurer conducted a key interview on Sky News with Sharri Markson discussing the Reserve Bank Governor, interest rates, Reserve Bank Review, May budget, and stage three tax cuts.
• Emergency Service Minister Murray Watt announced that buybacks are progressing for homeowners in the Northern Rivers. The buybacks are part of the Northern Rivers Resilient Homes Program, jointly funded by the Federal and NSW Governments.
• Chair of the House Economics Committee Daniel Mulino authored an opinion piece titled ‘An insurance mindset is vital for the future of the welfare state’

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Policy Update:

• ABA’s Chief of Policy, Chris Taylor (pictured), presented this week to the Senate Economics Legislation Committee on a bill to establish the Federal Government’s $15 billion National Reconstruction Fund. The proposed fund will target seven priority sectors and projects and aims to transform and diversify the economy by offering loans, guarantees and equity investments. The ABA’s submission to the Committee highlighted the need for the fund to work closely with private investors through an advisory panel. It also recommends a focus on investments in emerging industries and early-stage projects that would not otherwise attract funding, so it is “supplementing rather than substituting existing sources of finance”.

The ABA also:

• received a NSW Premier’s award, a finalist for its contribution to e-conveyancing and interoperability.
• met with the CEO of the UK Financial Markets Standards Board (FMSB) for an important discussion on ESG standards.
• met with the global Executive Director of the Taskforce on Nature-related Financial Disclosures (TNFD) to discuss nature disclosures and banking.
• hosted an Australian Prudential Regulation Authority (APRA) round table with senior bank members to discuss their 2023-24 policy and supervisory activities.

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Regulatory Update:

• ASIC appeared before the Parliamentary Joint Committee on Corporations and Financial Services. They provided further information on their proposed restructure which is due to be implemented from 1 July 2023. The structure will focus on four regulatory areas: intelligence gathering, transformation and technology; regulation and supervision; enforcement & compliance; and markets.
• The RBA appeared before the Parliamentary Joint Committee on Corporations and Financial Services to discuss payments issues.

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Economic Update:

• In the December 2021 quarter, wages grew 3.3% compared with the December 2022 quarter. The growth was below both market expectations and the expectations as outlined in the RBA minutes for their February cash rate decision. Wage growth of 3.3% returns us to the longer-term average and remains within the target band set by the central bank.

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Figure 1: Wage price index, Change from corresponding quarter in previous year, September 1998 – December 2022, %

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Upcoming Events:

• Wednesday 8 March 2023
  International Womens Day #EmbraceEquity
  Minter Ellison, Sydney (3:30pm – 7:00pm)

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Submissions Lodged:

• Inquiry into preparedness, response and recovery workforce models and alternative models to disaster recovery.
• Digital platforms – consultation on regulatory reform.

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Upcoming Submissions:

Published submissions

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Selected Media:

• ABC News – Anna Bligh on  Afternoon Briefing
• AFR – It’s time to break ASIC in two: James Shipton
• AFR – BNPL regulation perfect opportunity to clean up credit law mess
• SMH – ACCC probe to reignite ‘loyalty tax’ debate

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