Weekly Update: 7 July 2023

“As scammers get increasingly sophisticated and scams more complex, this cross-sector approach highlights that an ecosystem approach to disrupting scams is essential, and all sectors have a key role to play in the continued fight against scams – this includes government, banks, telcos, social media, crypto platforms and individuals.”  

ABA Deputy CEO Vanessa Beggs, speaking on the launch of the Federal Government’s National Anti-Scam Centre (NASC)

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Parliamentary Update:

• Official Department of Finance monthly figures showed the underlying cash balance for the 12 months to May was $19bn, well above the $4.2bn surplus flagged for the 2022/23 financial year in the last federal budget. This was driven by surging company and personal taxes, driven higher by strong commodity prices and the robust labour market. 
• Assistant Treasurer Stephen Jones announced that the first scam fusion cell under the National Anti Scams Centre (NASC) would target investment scams.
  • The fusion cell will be an expert taskforce from across Government, law enforcement, and the private sector who will utilise their expertise and intelligence to disrupt investment scams.
  • The cell will initially operate for 6 months, with the NASC publicly reporting outcomes.
• Finance Minister (and acting Treasurer) Katy Gallagher held a key press conference following the RBA’s decision to hold rates at its July meeting. Cost of living concerns, wage growth and productivity were also discussed. 
• The House of Representatives Economics Committee held public hearings as part of their inquiry into economic dynamism. Witnesses at the Melbourne hearings included representatives from Bendigo Bank and Macquarie Bank.   
• The Prime Minister hosted the President of Indonesia, Joko Widodo in Sydney and signed a joint communique following the meeting, which included an emphasis on enhancing the economic and development partnership between the nations.  

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Policy Update:

• The ABA held its biannual Small Business Roundtable with the Council of Small Business Organisations Australia (COSBOA) this week, focusing on impacts of the economic environment on small business and showcasing reform relating to the sector. The meeting included participants from COSBOA’s membership, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), the Queensland Small Business Commissioner, Dominique Lamb and small business and business banking representatives from banks.  

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Regulatory Update:

• The Australian exclusively reported that a short list of candidates to fill the role of RBA Governor has been finalised and provided to the Treasurer, with a decision to be made by cabinet within two weeks.  
• ASIC released a statement following their ‘Better Banking for Indigenous Consumers Project’ reviewed target market determinations (TMDs) for both high-fee and low-fee ‘basic’ accounts offered by some of Australia’s major and regional banks. ASIC says that their review found that many Indigenous consumers identified in the data were in high fee accounts paying high fees, despite being eligible for a low-fee ‘basic’ account, amongst other findings. 
• The National Anti-Corruption Commission commenced on 1 July, with 44 matters reportedly already referred to the new body.  
• APRA released a statement on common cyber security gaps following the first tranche of CPS234 assessments, outlining six of the most common control gaps noted. 

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Economic Update:

• Dwelling approvals rose 20 per cent between April 2023 and May 2023, but remain subdued relative to the 2021 peak with roughly two-thirds the number of approvals compared to May 2021.
• The trade surplus increased $1.3b to $11.8b in May 2023, driven by non-monetary gold.
• Commodity prices have dropped, with the value of commodities now below the 2021-2022 index of 100.

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Communications and Media:

• The ABA welcomed the launch of the Federal Government’s National Anti-Scam Centre (NASC), a key government and regulator initiative to help fight the scams scourge. The NASC kicks off with a fusion cell that will target investment scams. The ABA also welcomed the banking industry’s participation in the first fusion cell, alongside regulators, telecommunications industry and digital platforms. Read our media release here.

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Submissions Lodged:

• Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023

Upcoming Submissions:

Published submissions

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Selected Media:

• SMH – NAB scraps text message links in scam crackdown  
• AFR – RBA holds as economists warn of more interest rate rises 
• The Australian – AI helping banks hang on to borrowers  
• SMH – Interest rate reality bites as consumers snap shut wallets  
• The Australian – CBA commits to regional branches for three more years

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