Weekly Update: January 25, 2024

Highlights this week:

• Labor announces changes to the Stage Three tax cuts
• In the media: Banks move to slow down scammers – watch the Sky News report.
• Key data: Unemployment remains stable at 3.9%.

Quote of the week:
When economic circumstances change, the right thing to do is change your economic policy. That’s what we are doing. This is a change in our policy.

– Prime Minister Anthony Albanese in his address to the National Press Club, Canberra

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Feature:

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Parliamentary Update:

• Prime Minister Anthony Albanese appeared at the National Press Club to announce changes to the Stage Three tax cuts. From 1 July 2024, the Albanese Labor Government will:
  • Reduce the 19 per cent tax rate to 16 per cent (for incomes between $18,200 and $45,000). 
  • Reduce the 32.5 per cent tax rate to 30 per cent (for incomes between $45,000 and the new $135,000 threshold). 
  • Increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000. 
  • Increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000. 
• Assistant Treasurer Stephen Jones took part in an interview with the Weekend Australia where he set out priorities for 2024, including:
  • Least cost routing and payment fees 
  • Regulation of Apple Pay, Google Play and digital payments services 
  • Scams and fraud 
  • Rights and protections for users of digital platforms  
  • Cryptocurrency platform regulation  
  • Buy now, pay later legislation  
  • Financial advice  
• On 12 January, Treasurer Jim Chalmers released draft legislation for new climate reporting reforms.

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Policy Update:

The ABA:  

• held meetings between member banks, representatives from Western Australian Emergency Services and the WA Government following power outages in Kalgoorlie, WA, to ensure that banking services and cash remained available to the local community   
• attended a Treasury roundtable with COBA and a small number of members to discuss the consultation paper, Scams – mandatory industry codes. The roundtable discussed the proposed legislative framework, information sharing and a mechanism to promptly investigate and take down scam content, sector specific codes, dispute resolution and enforcement 
• met with Treasury for an early discussion of Treasury’s consultation paper, Payment System Modernisation. Insights from this discussion can help to inform ABA’s submission to this consultation 
• met with the Treasury Scams Taskforce as a follow up to the Scams Roundtable 

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Regulatory Update:

• The RBA has released two new research papers:
  • Developments in Income and Consumption Across Household Groups. Read more 
  • Understanding the Post-pandemic Demand for Australia’s Banknotes. Read more 
• RBA released new data on bank fees in Australia demonstrating total fees charged by banks fell by around 4 per cent. Read more 
• ACCC warning to consumers not to lose money to a side hustle scam. Read more 
• ACCC warning to consumers regarding scammers selling fake Taylor Swift tickets on social media. Read more 
• RBA media release: Expectations for Tokenisation of Payment Cards and Storage of PANs. Read more 
• ASIC incorporates legislative changes to the financial adviser exam. Read more 

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Economic Update:

The Unemployment rate remained stable at 3.9% in December. However, the participation rate decreased from 67.2% in November to 66.8% in December.

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Communications and Media:

ABA CEO Anna Bligh spoke to Sky News in an extensive interview about banking sector initiatives to clamp down on scammers, including the recently launched Scam-Safe Accord. Watch the piece here.  

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Upcoming Submissions:

Published submissions

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Selected Media:

• AFR – NAB moves focus to young savers, insists deposit market is competitive  
• SMH – Heat fading from mortgage war as banks protect margins  
• AFR – Home loan curbs urged to cool hot property market 
• AFR – Most cash is being hoarded, and lots used for crime, says RBA 

Weekly Update