Weekly Update: 9th February

Highlights this week:

• Announcement: APRA and ASIC have written to banks delaying the commencement date of the new Financial Accountability Regime (FAR) until July 1 
• In the media: ABA CEO Anna Bligh spoke to 7 News on the importance of a cross-industry ecosystem response to combat scammers 
• Key data: New loans for housing dropped by 4.1 per cent between November and December 2023 

Quote of the week:
“Developing a model for cash distribution that is sustainable in the long term requires addressing complex issues that will take some time to work through. I have encouraged the major participants in the cash distribution system to approach these issues with the public interest in mind.”  

– RBA Governor Michelle Bullock in her Opening Statement to the House of Representatives Standing Committee on Economics 

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Parliamentary Update:

• Prime Minister Anthony Albanese introduced the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 to amend income tax brackets from 1 July 2024.
  • Opposition Leader Peter Dutton and Teal MPs confirmed they would either support (or not oppose) the bill.  
• The Treasurer and Housing Minister Julie Collins introduced legislation to adjust the foreign investment framework for housing.
  • The changes implement higher fees for the purchase of established homes, increased penalties for those that leave properties vacant, and cut application fees for foreign investment in Build to Rent projects. 
• Employment Minister Tony Burke achieved crossbench support for the Government’s Closing Loopholes 2 industrial relations legislation. 
• The Senate welcomed its newest member, WA Labor Senator Varun Ghosh, who replaces former Senator Patrick Dodson.

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Policy Update:

The ABA: 

• appeared in a public hearing for the Senate Economics Committee Inquiry into Digital ID Bill 2023 and the Digital ID (Transitional and Consequential Provisions) Bill 2024. ABA supported the Bills being passed. ABA also supported digital identity being voluntary so that Australians can choose whether they use a digital identity, and have a choice of identity providers. Peak Bodies Roundtable in Australian sustainability reporting standards 

• attended the Financial performance and investment prospects – Northern Australian dairy farm sector 
• attended APRA-ABA-Member Workshops IRRBB reporting standards 
• attended APRA-ABA meeting on CPS230 implementation 
• attended ARNECC-ABA meeting in IOP project 

Key Submissions:  

• to Treasury’s consultation, Payments System Modernisation: Regulation of Payment Service Providers 
• to Treasury’s consultation, Winding down Australia’s cheques system 
• to Australian Treasury Consultation Climate-related Financial Disclosure: Exposure Draft Legislation 
• to Australian Registrars National Electronic Conveyancing Council 

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Regulatory Update:

• ACCC – Avoid heartache this Valentine’s Day – never take investment advice from an online love interest. Read more 
• RBA – Statement by the Reserve Bank Board: Monetary Policy Decision. Read more 
• ASIC/ APRA – ASIC and APRA issue joint letter on Financial Accountability Regime commencement and implementation. Read more 
• ASIC – ASIC to crack down on predatory lending. Read more

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Economic Update:

ABS Lending Indicators revealed: 

• New loans for housing dropped by 4.1 per cent between November and December 2023, although rose 11.7 per cent over the year to December 2023.
  • Business loans for the purposes of construction rose by 3.3 per cent in the month, and 21.9 per cent over the year, to December 2023. 
• The RBA’s Index of Commodity Prices showed an increase of 2.9 per cent in January after increasing by 3.2 per cent in December. The Index has nearly returned to its 2021/22 baseline of 100

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Communications and Media:

• ABA CEO Anna Bligh spoke to 7 News about the importance of a cross-industry ecosystem response to the scam scourge in Australia, and noted the crucial work banks are undertaking to combat scammers. 

• Ms Bligh was also interviewed on ABC Radio Brisbane about the decline of cash and Australia’s branch network as Australians increasingly opt for digital payments and online banking.  

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Upcoming Submissions:

Published submissions

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Selected Media:

• AFR – Bank executive accountability rules delayed as minister goes slow
• AFR – Banking regulators confirm delay of executive accountability rules 
• The Aus – End of an era as McEwan hands in his notice 
• The Aus – Rate cut on table but RBA warns inflation war not over 
• The Aus – Financial services employees craving generative AI for efficiency boost 
• The Aus – Qantas isn’t to blame for interest rate rises and Fels’ link in gouging report is puzzling, say experts 
• ABC – Taylor Swift ticket scammers target fans ahead of Eras concerts in Melbourne and Sydney 

Weekly Update