Weekly Update: 26 July 2024

Highlights this week:

• In the Media: Anna Bligh spoke to The Project on what banks are doing to protect Australians from scams.
• Announcement: The ABA welcomed the Federal Government’s upcoming campaign to further educate the community about elder abuse.
• Key Data: Household deposits continue to grow with $1.5 trillion held on the books of ADIs in May 2024.

Quote of the week:
“Our laws will simplify and speed up the process for mergers that are in the national interest and give the regulator stronger powers to identify and scrutinise transactions that pose a risk to competition, consumers and the economy.”

– The Hon Dr Jim Chalmers MP, Treasurer. Media Release, 24 July 2024.

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Media & Communications Update:

• The ABA provided multiple responses to The Project on scams this week on the Scam-Safe Accord, in addition to Anna Bligh being interviewed on the show on Thursday night.
• Anna also did TV grabs for Channel 7 Regional News about how people can protect themselves from elder financial abuse.
• The ABA also provided multiple responses to queries about e-conveyancing and interoperability.

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Policy Update:

• ABA and member banks met with AGD, AUSTRAC and Dept of Finance to discuss use of Digital ID for AML/CTF KYC purposes.
• ABA and member banks met with AGD, AUSTRAC and AP+ to discuss utilisation of NPP capability for AML/CTF reporting obligations.
• ABA and AusPaynet held regular forum on issues of shared interest.
• ABA CEO Anna Bligh attended the Advisory Board meeting of the National Anti-Scam Centre (NASC). Ms Bligh provided an update on the recent Australia-New Zealand Singapore Delegation.
• ABA attended the 2024 Australian Elder Abuse Conference, Turn Up The Volume, held in Adelaide.
• ABA hosted a roundtable with the NSW Anti-Slavery Commissioner, Dr James Cockayne, who is consulting on a proposed Code of Practice to reduce modern slavery through lending, investment, and asset management. 
• ABA attended the National Crisis Management meetings on the recent IT outages.
• ABA attended APRA workshop on IRRBB model re-accreditation plan for the revised APS 117.
• ABA attended ATO workshop on AT1 Securities.
• ABA attended NSW Land Registry CEO Stakeholders Forum.
• ABA attended S&P Global Rating’s Australian Property Spotlight Seminar.

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Regulatory Update:

• The Council of Financial Regulators released a consultation paper on reassessing the case for central clearing of bonds and repos in Australia.
• APRA announced the completion of the prudential architecture modernisation program.
• APRA released the finalised targeted reforms to banks’ liquidity and capital requirements.

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Parliamentary Update:

• Two Albanese Government Cabinet Ministers announced their retirement from politics at the next election: Linda Burney and Brendan O’Connor.
• The Prime Minister said these retirements offered a chance to refresh his ministry and promote new talent. A new Ministry will be announced on Sunday.
• Treasurer Jim Chalmers released draft legislation to change Australia’s merger rules which will commence from 1 January 2026, subject to its passage through Parliament. Submissions on the draft legislation are open until 13 August 2024. Treasury will consult on the notification thresholds later this year. In addition to the release of draft legislation, the government has appointed Andrea Gomes da Silva as an independent expert advisor.
• The Treasurer released draft legislation on foreign resident capital gains tax rules which will increase the withholding rate on foreign resident capital gains from 12.5 to 15 per cent, and cut the transaction threshold before withholding applies from $750,000 to $0. Consultation on the draft legislation and explanatory materials is open until 5 August 2024.
• Small Business Minister Julie Collins released Draft Payment Times Reporting Rules which aims to improve payment times for small businesses. Stakeholders are encouraged to provide a submission by Monday, 19 August 2024.

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Economic Update:

• Despite the household savings ratio remaining at a low rate similar to the mid-2000s (.09% at the end of Q1 2024), household deposits continue to grow, with $1.5 trillion held on the books of ADIs in May 2024 while deposits in offset accounts are higher than ever before at $271 billion at the end of the first quarter of 2024.

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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:

• AFR – Banks turn to Gen AI to protect customers
• The Australian – Win for small banks as APRA delays liquidity reforms
• SMH – Bank threat that shook up Australia’s $800b property monopoly
• The Guardian – Mortgage stress rose in June 
• SMH – Reserve Bank risks recession with rate rise

Weekly Update