Weekly Update: 8 August 2025

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Key News:

• Anthony Albanese indicated there will be no new taxes between now and the next federal election.
  • The promise comes after the Productivity Commission floated a two-tier company tax model and a cash-flow tax.
  • Treasurer Jim Chalmers had previously signalled an “open mind” on reform.
• Treasurer Jim Chalmers confirmed the Government has accepted in principle eight of the nine recommendations of the Council of Financial Regulators’ (CFR) small and medium-sized bank review.
  • Those eight recommendations include lifting the covered-bond cap to 12% of assets, streamlined IRB accreditation and a new “proportional” prudential tier for mid-sized banks.
  • Treasury will seek feedback on the remaining proposal for an even lighter-touch framework for very small ADIs.

Quote of the week:
“A more diverse banking sector is good for competition, good for consumers, good for industry and good for the economy.”

–  Treasurer Jim Chalmers

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Media & Communications Update:

• The ABA issued a media release welcoming the Council of Financial Regulators’ review into small and medium-sized banks.

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Political Update:

• Treasury released three issues papers ahead of the 19–21 August Economic Reform Roundtable.
• Treasurer Jim Chalmers lowered expectations of tax reform at the Economic Reform Roundtable, recasting the forum as a push for productivity-boosting deregulation, housing supply and better regulation. 
• Chalmers also signalled support for Cboe Australia’s full market licence, paving the way for another equities exchange once ASIC finalises approvals. This could break the ASX’s virtual monopoly.
• Tasmanian Liberal leader Jeremy Rockliff has been re-appointed as Premier after July’s snap election. State Parliament reconvenes on 19 August, when Labor will likely table another no-confidence motion. 
• Both federal Houses of Parliament are in recess until 25 August. 

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Policy Update:

• The Australian Government is consulting on developing Horizon 2 of the 2023-2030 Australian Cyber Security Strategy.
  • The consultation explores the changing security outlook over the next few years, any government initiatives or programs that could be expanded or replicated, among other questions.
  • The ABA is liaising with the Cyber Security and Critical Infrastructure working group to determine the need for a response. 
• The NSW Legislative Council’s Committee on Competition Reforms in Electronic Conveyancing announced that it is calling for submissions to its inquiry. The ABA will prepare a submission. 
• The ABA met with Housing Australia for an update on the expansion of the Home Guarantee Scheme and implementation of the Help to Buy Scheme. 

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Economic Update

• The ABS released the latest figures for the Monthly Household Spending Indicator, with household spending rising 0.5% in June (following a 1% rise in May and a flat result in April).
  • Goods spending rose 1.3% with most growth in food, new vehicle and electronics spending. 
  • Services spending fell by 0.5% following two months of sustained growth. 
• Six of the nine spending categories rose in June.
  • This rise was led by Furnishings and Household equipment (+2%), Clothing and Footwear (+1.6%), and Food (+1.5%). 
  • Alcoholic beverages and tobacco (-2.4%), Hotels, cafes and restaurants (-0.8%), and Health (-0.3%) were the only categories that fell. 

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Regulatory Update

• APRA formally announced it will make changes to its banking framework to increase proportionality and reduce regulatory burden as part of the CFR’s Review into Small and Medium-Sized Banks. 
• The ACCC issued a determination to enable AusPayNet, AP+, members of the BECS Framework and members of the New Payments Platform Scheme (in collaboration with other stakeholders) to engage in discussions and share information for the purpose of developing a common industry vision regarding the future of account-to-account payments infrastructure in Australia. 
• The Productivity Commission released its interim report on Harnessing Data and Digital Technology. 
  • The report reaffirmed the role of AI in productivity growth and urged that AI-specific regulations should only be considered as a last resort.

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Coming up next week:

• Politics:
  • 12/08 – Cash-rate decision & Statement on Monetary Policy (RBA) 
  Data:
  • 12/08 – Barriers and Incentives to Labour Force Participation, Australia (ABS) 
  • 13/08 – Wage Price Index, Australia (ABS) 
  • 13/08 – Lending Indicators (ABS) 
  • 14/08 – Average Weekly Earnings, Australia (ABS) 
  • 14/08 – Labour Force, Australia (ABS) 

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Upcoming Submissions:

Published submissions

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Events

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Reports

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Selected Media

• AFR – No new taxes before election, says PM 
• AFR – Mastercard warns RBA surcharge to cost shoppers $1.5b
• AFR – Labor to cut red tape to help smaller banks compete
• The Australian – Apple weighs fight with Reserve Bank over $1.2bn Australian payments crackdown
• The Australian – Chalmers talks down his own plan to turbocharge economy
• The Adviser – Government accepts majority of banking review recommendations

Warm regards,
The ABA Team

Anna BlighRBAWeekly Update