Weekly Update: 26 May 2023

“We know some did better out of the pandemic than others – and it is only fair that those that did well contribute to the repayment effort.”  

Tim Pallas, Treasurer of Victoria

Parliamentary Update:

• The Victorian Budget was delivered, with key announcements including:
  • An increase in payroll tax for businesses with national payrolls above $10 million. A rate of 0.5% will apply for businesses with national payrolls above $10 million, and businesses with national payrolls above $100 million will pay an additional 0.5%.
  • An increase in land tax for residential investment properties.
  • Additional investments in housing, under the Victorian Homebuyer Fund (VHF).
  • Additional investments in rural and regional Victoria, to fulfill commitments made at the last election.
• Assistant Treasurer Stephen Jones outlined the Federal Government’s proposed reform option for buy now, pay later products at the Responsible Lending & Borrowing Summit.
• Minister Jones also announced draft legislation to restore access to external dispute resolution for consumers of financial services.
• Prime Minister of India Narendra Modi appeared with Prime Minister Anthony Albanese at Sydney’s Qudos Bank Arena. In a wide-ranging speech, Mr Modi mentioned the strength of the Indian banking system.

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Policy Update:

• ABA CEO Anna Bligh spoke at the International Business, Environment & Climate Conference in Cairns on the topic of ‘Capital providers investing in sustainable industries’. Highlights included the overall profile of financed emissions from the perspective of Australian banks and how banks and government can play complementary roles in bringing about the transition to net zero. With Ray Martin hosting the session, other panel members included Vice Chairman, Citi (Switzerland) – Keith Tuffley, Director, Global Business Development (USA) – Erin Summe and CEO, and Association of Superannuation Funds of Australia – Dr Martin Fahy.

• The ABA received an update from the NSW Government on its legislation to make amendments to stamp duty policy for first home buyers, and an update from the Commonwealth Treasury on changes concerning the Home Guarantee Scheme.
• The ABA attended the Australian Retail Credit Association’s Credit Summit, which provided key insights and data relating to higher cost of living, economic trends, consumer spending and business conditions.

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Regulatory Update:

• The Commonwealth Treasury announced that they had referred the PwC-Collins matter to the Australian Federal Police to consider commencement of a criminal investigation.
• APRA announced it has granted in1bank a licence to operate as an authorised deposit-taking institution (ADI) without restrictions. 
• The Treasury released a discussion paper on Proposed Financial Institutions Supervisory Levies for 2023-24.
• The SMH reported that a spokesperson for the RBA confirmed the board had discussed the RBA Review at their 2 May board meeting.
• The RBA’s Head of Domestic Markets, David Jacobs, delivered a speech in Tokyo titled Australian Fixed Income Markets – Recent Developments and a Look Ahead’’.

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Economic Update:

Monthly retail trade turnover remained at the same level in April 2023 as it was in March 2023, although it saw a 4.4% increase from April 2022. There was growth in the value of trade of clothing, footwear and personal accessories as well as department stores, while there was a contraction in household goods retailing.

Retail trade turnover, Change from previous month and year, April 2019 – April 2023, %

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Communications and Media Update:

• ABA CEO Anna Bligh spoke at the Responsible Lending & Borrowing Summit encouraging customers experiencing financial difficulty to reach out to access bank support services – and to do so as early as possible.

Upcoming Events:

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Submissions Lodged:

• Electronic Creation and Execution of Documents in WA – Consultation Paper
• Consultation on proposed amendments to AFCA Rules and Operational Guidelines

Upcoming Submissions:

Published submissions

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Selected Media:

• AFR podcast – James Eyers discusses the topic: “Should the big four banks be worried about Apple?”
• ABC – Money mules are involved in the majority of scam reports, ACCC says
• AFR – CBA goes all in on generative AI
• AFR – Westpac taps open banking regime to speed up 10-minute mortgages  
• SMH – Fast-tracked ACCC complaints process set to better protect consumers