Market concentration in the banking sector - household loans

Recently, there has been considerable concern amongst politicians, the media and the broader community regarding competition in the Australian banking sector. Specifically, concerns have been raised regarding banks increasing certain lending rates over and above rises in the RBA’s official cash rate, particularly for housing loans. This observation has led to a debate about collusion and ‘price-signalling’ within the banking sector. This post examines data from the Australian Prudential Regulation Authority (APRA) and the Reserve Bank of Australia (RBA) on market shares and concentration in the household lending sector to see whether there has been any increase in the capabilities of financial institutions to use market power to their advantage.

Sitting days for 2011

The sitting pattern for the House of Representatives was issued on 22 November 2010. In 2011 the House is scheduled to sit for 68 days (or 71 if required). The mean number of sitting days since 1996, in non-election years, is 70.5 days.

Constitutional recognition of Indigenous people

During the course of the election campaign both major parties made announcements about constitutional recognition of Indigenous people. The Coalition promised to hold a referendum at the 2013 election on the wording of a preamble in the Constitution to recognise Indigenous Australians, and the ALP promised to set up an expert panel to build support for the constitutional recognition of Indigenous people.  

Opposition Youth Allowance bill referred to committee

A Private Member's Bill, introduced by Senator Fiona Nash, seeking to make it easier for students in inner regional areas to qualify for Independent Youth Allowance has been referred to the Senate Education, Employment and Workplace Relations Committee for inquiry and report by 15 February 2011. The purpose of the bill, the Social Security Amendment (Income Support for Regional Students) Bill 2010, is to require that the eligibility criteria for students on Independent Youth Allowance from very remote, remote and outer regional areas be extended to include inner regional students.

Background to this issue can be found in a recent post on Senator Nash's Bill and a related House of Representatives motion introduced by Opposition Whip, Nola Marino (and passed by 74 votes to 70).

High Court ruling on the offshore processing of asylum claims

On 11 November 2010 the High Court delivered its much anticipated judgment in the cases of Plaintiff M61/2010E v Commonwealth of Australia; Plaintiff M69 of 2010 v Commonwealth of Australia [2010] HCA 41. The plaintiffs were asylum seekers intercepted and initially detained on Christmas Island. Although subsection 46A(1) of the Migration Act bars visa applications by such asylum seekers (known as ‘offshore entry persons’ under the Migration Act), the Minister for Immigration and Citizenship has the personal discretion to lift the bar under that provision, or to grant a visa under section 195A, if in the public interest. However, neither section imposes a duty on the Minister to consider exercising the discretion.

Private health insurance premium increases

The private health insurance sector has begun its annual process of negotiating premium increases with the federal government. To most, the process of—and indeed the need for—negotiating premium prices with government is a little mysterious. A Background Note prepared by the Parliamentary Library provides an overview of the current process for seeking premium increases. Under the Private Health Insurance Act 2007, private health insurance funds must seek the Minister for Health and Ageing’s approval for all premium increases; and the Minister must publicly disclose reasons for not approving an increase.

Independent review of aid effectiveness

On 16 November 2010, Foreign Minister Kevin Rudd announced an ‘Independent Review of Aid Effectiveness’ which will examine the effectiveness, efficiency and strategic direction of Australia’s aid program ‘in line with Australia’s national interests’.  It is expected to be completed by April 2011 and will be the first major review of the program since the Simons Review commissioned by the Howard Government in 1996.

Australian Government funding for schools

A recently published Background Note from the Parliamentary Library shows that Australian Government funding for schools will increase in real terms (in 2008–09 dollars) from $6.9 billion in 1999–00 to $11.5 billion in 2011–12. This means that funding for government schools will increase from $2.8 billion to $4.4 billion and, for non-government schools, from $4.2 billion to $7.1 billion.

Attitudes to same-sex marriage

The Federal Parliament is currently debating a motion on same-sex relationships moved by Adam Bandt—the recently elected Australian Greens party member for the seat of Melbourne. The motion notes there is ‘widespread support for equal marriage in the Australian community’ and calls on ‘all parliamentarians to gauge their constituents’ views on the issue of marriage equality’. As a result of this and other related debate, there is currently great interest in what public opinion polls may be able to tell us regarding changing attitudes towards same-sex marriage.

Australian report on Bisphenol A

Food Standards Australia New Zealand (FSANZ) has released its report on Bisphenol A (BPA) in food packaging and the risks to consumers. The compound BPA has a controversial history. It is suspected of being an endocrine disruptor (a chemical that mimics some of the natural hormones of the human body). It can also be directly toxic at high enough doses. More recent studies have found a range of other possible adverse effects from BPA, but this research is still preliminary and subject to confirmation.

Conscience votes in the federal Parliament

On 29 September 2010 the Leader of the Australian Greens, Senator Bob Brown, introduced the Restoring Territory Rights (Voluntary Euthanasia Legislation) Bill 2010 into the Senate. All political parties have granted their senators and members a conscience vote on this legislation. This is the first conscience vote in the federal parliament since the Prohibition of Human Cloning for Reproduction and the Regulation of Human Embryo Research Amendment Bill was debated in 2006.

Opposition seeks changes to eligibility for Youth Allowance for inner regional students

The House of Representatives has passed by 74 votes to 70 a motion by Opposition whip Nola Marino ‘requiring’ the Government to introduce legislation that would make it easier for students in inner regional areas to qualify for independent Youth Allowance. Meanwhile, in the Senate, National Party Senator, Fiona Nash, has introduced a private members bill that seeks to introduce a measure along the same lines as that proposed in Ms Marino’s motion.

This issue has its origins in substantial changes to student assistance that the Rudd-Gillard Government introduced through the Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009.

10th anniversary of the landmark UN convention on Women, Peace and Security

October 2010 marks two important anniversaries for the United Nations (UN)—the 65th anniversary of the UN’s establishment (24 October), and the 10th anniversary of a landmark UN Security Council Resolution (SCR 1325) on Women, Peace and Security (31 October). Australia’s priorities and actions towards implementing and promoting SCR 1325 are outlined below.

Parliamentary Library Vital Issues Seminar—Australia’s role and commitment in Afghanistan

This seminar, held on 20 October 2010, featured distinguished speakers Major General Jim Molan AO DSC and Mr Geoffrey Barker who provided contrasting perspectives on Australia’s continued involvement in Afghanistan. The seminar was chaired by Senator Russell Trood.

Child protection income management in the Northern Territory

The Gillard Government recently announced that child protection income management was being rolled out in the Northern Territory (NT). Under this program, child protection workers in the NT will be able to refer parents to Centrelink for compulsory income management when children are being neglected or are at risk of neglect.

The future of multiculturalism

Recent events in Europe have called into question the future of multiculturalism as a policy approach in increasingly diverse societies. In Australia, public debate in relation to migrants has, more recently, been focused on issues relating to population growth and asylum seekers but there have been calls for a greater articulation of the Government’s approach to multiculturalism and the issues faced by marginalised groups in the community. A new Parliamentary Library Research Paper examines the history of multiculturalism in Australia and offers context to debates in Australia and overseas.

Seeking asylum from Afghanistan

What is the situation globally? Afghanistan has been the leading country of origin of refugees for the past three decades with up to 6.4 million of its citizens having sought international protection during peak years. At the end of 2009, there were more than 2.9 million Afghan refugees and one out of four refugees in the world was from Afghanistan. In total there were over 3.6 million people of concern to the UNHCR for Afghanistan at the end of 2009. (See the UNHCR's 2009 Global Trends and Global Report 2009–Afghanistan for more details on the humanitarian situation in Afghanistan.)

Building the Education Revolution – Private Member’s Bill

The Opposition has introduced a Private Member’s Bill to establish a judicial Commission of Inquiry into the Building the Education Revolution (BER). The Bill is the result of ongoing complaints and concerns about the BER’s administration and implementation. It also comes amidst a number of other BER inquiries and reports into various aspects of the BER’s operation, the chief focus of which has been the Primary Schools for the 21st Century (P21) element of the BER. If the Bill is passed, the Commission of Inquiry would become the fifth BER inquiry or report at the national level.

Developments in refugee law and policy 2007-10 Labor's first term in office

One of the first things the newly elected Labor Government did upon taking office in 2007 was to stop processing asylum claims in the small Pacific Island State of Nauru—which the then Minister described as a 'shameful and wasteful chapter in Australia's immigration history'.

However, in retaining the former Coalition Government's excision policy (which removes the right of asylum seekers to apply for a visa) and use of its purpose built immigration reception and processing centre on Christmas Island, the Government attracted criticism from refugee advocacy groups and academics alike—Adjunct Professor Michael White being of the view that Labor's new approach 'did not fundamentally alter Australia's previous immigration policy and many features of the Pacific Solution remained'.

Anti-Poverty Week

This week (from 17 to 23 October 2010) is anti-poverty week. The following information provides Members and Senators with a brief overview of the situation with regard to poverty in Australia.