Faith in Australian governments falls amid corruption concerns

Trust and confidence in all levels of government is continuing to slide as calls intensify for the establishment of a national anti-corruption agency.

A global corruption barometer conducted by Griffith University and Transparency International Australia has also flagged concerns about public officials or politicians using their positions to benefit themselves or their families.

Kim Landers speaks with Professor AJ Brown on the ABC's "AM"

A telephone survey of 2,218 adults is the first measure since 2012 gauging the growing impact of corruption on trust and condifence in government.

Project leader Professor AJ Brown of Griffith University says rising citizen distrust in real or suspected corruption underscores support for a new anti-corruption body sponsored by the federal government.

"We now see a stronger correlation between trust and action against corruption," Professor Brown said.

"Continued slippage in the perceived integrity of federal officials clearly has a disproportionate effect on overall trust and confidence, nationwide."

According to the survey, trust and confidence in all levels of government fell last year to 46 percent for federal and state levels and 51 percent for local government.

While concerns about bribery remain low at two percent, concerns about public officials and politicians abusing their position to benefit themselves or family rose to 62 percent.

The report says there has been a nine percent increase in perceptions that federal members of parliament are corrupt, with 85 percent of respondents saying at least "some" are corrupt with 18 percent believing "most or all" are corrupt.

Transparency International Australia chief executive Serena Lillywhite said the survey shows the risks of undue influence that benefits the rich and powerful is real.

"For 56% of respondents – equating to over 10.2 million Australians – to say they had personally witnessed or suspected favouritism by a politician or official in exchange for donations or support is nothing less than shocking," Ms Lillywhite said.

"This snapshot also shows the case for a strong, comprehensive federal anti-corruption agency is well understood by those within government, not just based on the fears of outsiders."

"Improved transparency and strengthened oversight of government decision making, including the regulation of lobbyists, is also long overdue," Ms Lillywhite concluded.

The barometer shows 67 percent of respondents support the creation of a federal anti-corruption body with 43 percent expressing strong support.

The full findings to be released tomorrow at a Canberra symposium come as the federal government examines the merits of a national integrity commission similar to the Independent Commission Against Corruption in New South Wales.

Royal Commission: APRA deputy chair Helen Rowell warns public enforcement action could destabilise funds

Australian Prudential Regulation Authority deputy chair Helen Rowell says the banking watchdog prefers to operate behind the scenes rather than seeking public enforcement action. 

Ms Rowell told the financial services Royal Commission that APRA was aware of risks that investors of any targetted fund might rush to liquidate their investment and destablise a fund. 

ABC's Peter Ryan says APRA confirmed it had not taken any enforcement action against a super fund since 2008.

Here's the coverage from The World Today on the ABC

AMP Super chair Rick Allert in Royal Commission hot seat to explain myriad of fees in superannuation arm; Michael Hodge QC channels Ms Siri

AMP Super chairman Rick Allert has been pressured to explain the myriad of fees incurred in the administration of the wealth manager's superannuation arm. 

Counsel assisting the banking Royal Commission Michael Hodge is continuing his scrutiny of AMP given damaging revelations about fees charged without service earlier this year. 

ABC's Peter Ryan says this morning's hearing received an unexpected interruption when Michael Hodge's Apple watch hear from Ms Siri.

Here's my report from The World Today

Full banking licence to take on Big Four not on Australia Post agenda just yet says chief executive Christine Holgate

Australia Post chief executive Christine Holgate has doused speculation that she is considering a bid for a full banking licence to exploit revelations from the financial services Royal Commission. 

Ms Holgate told ABC's Peter Ryan there is no need to apply for a banking licence but says Australia Post would welcome a closer relationship with the major banks especially in rural and remote Australia. 

Ms Holgate confirmed that while traditional "snail mail" remains in decline, it is not about to disappear.

In a wide ranging interview, Christine Holgate responded to concerns about the gender pay gap given her lighter pay packet compared to predecessor Ahmed Fahour.

Here's the interview aired on this morning's AM program

Trailing commissions could be scrapped, Colonial First State executive Linda Elkins tells Royal Commission

Colonial First State executive Linda Elkins tells the financial services Royal Commission that the future of controversial trailing commissions is being reviewed. 

Ms Wilkins said Colonial could move unilaterally without approval of its parent company, Commonwealth Bank. 

ABC's Peter Ryan says trailing commissions have been a blemish on the industry.

Aust Banking Association boss Anna Bligh flags possible serious penalties at end of Royal Commission

Australian Banking Association chief executive Anna Bligh has flagged possible serious penalties as a result of the financial services Royal Commission.

The former Queensland labor premier said while banks are not about to be abolished, real change is needed given revelations about the behaviour of some banks. 

Here's my report from The World Today on the ABC.

Turkey currency crisis could spark run on banks, CMC chief market strategist Michael Hewson warns

The risk of a full blown economic crisis in Turkey is escalating after tough talk on tariffs from Donald Trump precipitated a meltdown in the nation's currency. 

CMC chief market analyst Michael Hewson tells ABC's Peter Ryan that concerns about interference in Turkey's economy could spark a run on foreign-owned banks. 

Turkey's currency has plunged 40 percent this year with falls precipitated by Donald Trump's move to ramp up tariffs on steel and aluminium.

Here's my report from this morning's AM program on the ABC

Bluescope Steel's $1.6b profit. But still not paying corporate tax, given "carry forward" losses from transformation.

Bluescope Steel chief executive Mark Vassella tells @eleanorhall1 that the company is still not in a position to pay corporate tax as it utilises "carried forward tax losses" in Australia and NZ. 

"We are certainly absorbing the accumulated tax losses that we have. The sooner we get back to paying tax the better outcome for Bluescope because it means we are generating profits," Mr Vassella told The World Today.

Royal Commission: NAB executive Andrew Hagger concedes publicity was a factor in "fee for no service" deal with ASIC; Q-Super executive says indigenous Australians get a raw deal on supernannuation

National Australia Bank senior executive Andrew Hagger has conceded that publicity was a factor when determining the reprimand to accept from corporate regulator ASIC over charging fees for no service. 

Earlier, Q-Super executive Lyn Melcer told the financial services Royal Commission that indigenous Australians received a poor deal on superannuation and stood to retire with a super balance 46 percent below what is required for a comfortable retirement. 

Here's my coverage from The World Today on the ABC.

Royal Commission: National Australia Bank top executive Andrew Hagger to be grilled on "fee for no service"

National Australia Bank senior executive Andrew Hagger has been summoned to the financial services Royal Commission to be grilled on suggestions that the bank breached the corporations act on 110 occasions by charging fees for no service. 

Royal Commissioner Kenneth Hayne said last week that the NAB might have been engaged in criminal activity in relation to the breaches. 

ABC's Peter Ryan is covering the Royal Commission and spoke to the AM program.

NAB boss CEO Andrew Thorburn apologises as Royal Commission suggests criminal breaches on fees for no service

The National Australia Bank is staring down the prospect of criminal charges for trying to bury evidence that it allegedly charged fees for no service. 

The latest damaging revelations in the financial services Royal Commission has prompted the NAB's chief executive Andrew Thorburn to issue an extraordinary apology to his customers. 

ABC's Peter Ryan says there is speculation that Commissioner Hayne might refer potential civil or criminal charges to commonwealth prosecutors.

ASIC is a weak corporate cop, should be stripped of bank supervision: former ACCC boss Allan Fels

Former ACCC chairman Professor Allan Fels has described the Australian Securities & Investments Commission as weak and ineffective in fighting bank misconduct - and says it should be stripped of supervisory powers over banks. 

Professor Fels says those powers should be handed to the Australian Competition & Consumer Commission which unlike ASIC would be a feared corporate cop. Allan Fels has also backed a proposal from the Greens that the big banks and AMP be broken up. 

He spoke with the ABC's Peter Ryan on the ABC's AM program

"In hindsight, we should have acted faster": former NAB super trustee Nicole Smith grilled on fee for no service

A former superannuation trustee from the National Australia Bank has been grilled by the financial services Royal Commission on why there was a delay in compensating customers charged fees with no service.

Nicole Smith told Michael Hodge QC that in hindsight trustees should have struck a faster deal with the corporate regulator ASIC.

ABC's Peter Ryan says Commissioner Kenneth Hayne struck out an application from the NAB to suppress documents outlining negotiations with ASIC.

Here's my report from The World Today

Power prices to rise without agreement on NEG, warns Energy Australia chairman Graham Bradley

Power prices are likely to rise without a deal on the National Energy Guarantee (NEG), warns Energy Australia chairman Graham Bradley. 

Mr Bradley says no agreement will mean a new period of policy uncertainty that will unsettle local and foreign investors. 

Graham Bradley spoke on AM with the ABC's Peter Ryan.

CBA boss Matt Comyn won't guarantee scandals have ended, delivers 4pc fall in profit to $9.3 billion

Commonwealth Bank chief executive Matt Comyn won't guarantee there are no more scandals to come for Australia's biggest bank. 

Mr Comyn says he is working to rebuild the CBA's reputation amid fallout from the financial services Royal Commission that contributed to a four percent fall in full year profit to $9.3 billion. 

In one of his first major interviews since taking on the CEO hotseat, Matt Comyn spoke with the ABC's Peter Ryan on The World Today

ASIC staff to be embedded in banks by end of month, starting with CEO's office

The Australian Securities & Investments Commission will embed its staff in the major banks and AMP by the end of the month and will begin at the chief executive's office. 

ASIC chairman James Shipton rejected claims that the corporate cop has been "asleep at the wheel" with a tendency to use enforceable undertakings rather than taking tougher action such as cancelling a bank's licence.

Here's my interview with James Shipton broadcast on The World Today 

Corporate cop ASIC to embed staff in big four banks, AMP to fight misconduct

The Australian Securities and Investments Commission will, for the first time, have enhanced powers to embed its enforcement staff into the major banks and wealth manager AMP as part of an "expanded armoury" to fight white-collar crime. 

Here's my story

The $70 million budget boost for ASIC comes amid fallout from the banking Royal Commission where ASIC has been accused of being "asleep at the wheel" in the fight against corporate misconduct. 

I spoke with Financial Services Minister Kelly O'Dwyer speaks on this morning's AM.

Super trustees "surrounded by temptation", banking Royal Commission told

Superannuation trustees are "surrounded by temptation" and subject to conflicts of interests about their oversight of the $2.6 trillion sector, the banking Royal Commission has heard. 

Counsel assisting Michael Hodge QC has also raised concerns about whether regulators are doing enough to protect retirement next eggs. 

ABC's Peter Ryan says for many Australians, superannuation accounts for 50 percent of household assets.

Here's my report from The World Today

Superannuation funds to feel heat on fees and charges as Royal Commission resumes

The integrity and performance of Australia's $2.6 trillion superannuation sector will be scrutinised when the financial services Royal Commission resumes this morning. 

A recent Productivity Commission report said superannuation was an "unlucky lottery" for some with fees and charges eroding some retirement nest eggs. 

ABC's Peter Ryan says Round 5 of the Royal Commission is critical given the "set and forget" nature of superannuation for many Australians.

I spoke with Eva Sheerlink, chief executive of the Australian Institute of Superannuation Trustees, on this morning's edition of AM.

Apple market value tops US$1 trillion - but could it eventually go the way of the Blackberry?

Apple has become the first company listed on Wall Street to hit a trillion US dollars in value.

The tech company's shares has surged by 50,000 percent since being listed in 1980 and now accounts for 4 percent of the S&P 500 index.

But some analysts worry that without continued growth, Apple could eventually go the way of its once fierce competitor Blackberry.

Here's my report from this morning's AM

AMP chairman David Murray to bolster CEO power in governance shakeup

AMP chairman David Murray has vowed to make the embattled wealth manager's board and management more accountable for their actions. 

The former head of the Commonwealth Bank plans to push back against ASX corporate governance guidelines that he says have in some ways diluted the power of the AMP chief executive. 

ABC's Peter Ryan is covering the banking Royal Commission which has accused AMP of unlawful and unethical behaviour.

Listen from today's edition of The World Today

Flatlining incomes, housing stress, inequality narrowing but men doing more housework says HILDA survey

Flatlining incomes, persistent housing stress, renters struggling to buy their own homes and women doing more housework than men.

They're some of the top findings of the closely watched social and economic barometer otherwise known as the HILDA.

The Household Income and Labour Dynamics Survey out today covers 17-thousand Australians looking at income, employment, health and education over the participants' lifetimes.

I spoke on AM with the report's co-author Professor Roger Wilkins from the Melbourne Institute.

Telstra in major management overhaul - four top executives axed

Telstra has announced a major shakeup of its senior management with four top executives being shown the door.

The leadership overhaul comes after the telco giant flagged big job losses in June as it fights back against a competitive digital world and threats from the rollout of the National Broadband Network.

Here's my analysis from The World Today

Big business urges PM to stand firm on company tax cuts - I speak with Aust Industry Group boss Innes Willox

The Prime Minister is being urged to stand firm in the face of growing pressure to dump his proposed company tax cuts. 

Innes Willox, chief executive of the Australian Industry Group, agrees Mr Turnbull needs to be politically pragmatic while selling the benefits to the economy. 

I spoke with Innes Willox in this morning's AM program

AMP releases royal commission damage control plan; warns investors to lower profit expectations

AMP has announced lower profit expectations to the market, and released its royal commission damage control plan. 

The wealth manager will put aside $290 million for its first half profit to compensate customers charged for services they did not receive. 

ABC's Peter Ryan says AMP faces more scrutiny from the Royal Commission and that senior counsel assisting Rowena Orr QC has previously claimed the company may have engaged in criminal activity.

Here's my report from The World Today

Fairfax brand to die in $4 billion Nine Entertainment takeover

Fairfax and Nine have announced a $4 billion merger that will create an integrated media giant across television, online video streaming, print, digital and real estate advertising — and erase the Fairfax name. 

Nine will be the dominant partner, with its current shareholders holding 51.1 per cent of the merged company's shares, and the current Nine chief executive and chairman — Hugh Marks and Peter Costello, respectively — leading the combined firm, which will be called Nine. 

ABC's Peter Ryan says the historic deal changes Australia's media landscape.

Here's my coverage from The World Today

Inflation remains subdued - though petrol prices and health costs nudge inflation higher

Surging oil prices and ongoing cost increases in medical and hospital services has seen the annual inflation rate edge up to 2.1 per cent over the year. 

But June quarter inflation remains soft at the bottom of the Reserve Bank's 2 to 3 percent target band. 

ABC's Peter Ryan says the RBA's cash rate could remain in hold at 1.5 percent until 2020.

NAB boss Andrew Thorburn concedes some remote branches will close with technological change; ready to face Royal Commission if called

National Australia Bank chief executive Andrew Thorburn has conceded that some branches in rural and remote Australia might close as part of technological change. 

As he deals with the fallout from the financial services royal commission, Mr Thorburn has committed to ending default interest rate hikes to farmers who miss repayments and other assistance with agricultural loans. 

Mr Thorburn has been visiting Wagga Wagga in southern NSW and he spoke with the ABC's Peter Ryan on The World Today

Organised crime, cyber-hackers now top threat to Australian businesses warns PWC

Australian companies are being ripped off more than ever by their own customers, suppliers and cyber criminals who are sometimes backed by organised crime. 

The advisory firm PWC says customer fraud is now the number one economic crime in Australia. 

PWC's global economic crime survey out this morning says organised crime syndicates are becoming more sophisticated and are using new technologies to fake documents and IDs.

I spoke with PWC's cyber markets leader Steve Ingram on the ABC's AM program.

Construction set for its biggest fall since the global financial crisis warns BIS Oxford Economics

Australia's building commencements fuelled by investor apartment construction looks like heading from boom to bust, according to the economic forecaster BIS Oxford Economics.

In a reality check for investors who bought at the top of the apartment boom, BIS is predicting the biggest correction since the global financial crisis hit in 2008 with housing starts set to fall by almost 23 percent by 2020.

I spoke with BIS Oxford Economics associate director Adrian Hart.

Nufarm shares dive as drought saps demand for agricultural products; ACCC fines One Big Switch over misleading conduct

Shares in the agricultural products company Nufarm have fallen as much as ten percent after telling investors the drought on Australia's east coast would hurt profits. 

Nurfarm told the Australian Stock Exchange said the market had reached a turning point and it was "now unlikely a viable crop season would occur in many parts of the country." 

In other news, ABC's Peter Ryan says the competition regulator has fined One Big Switch $25,200 for misleading claims over a campaign for consumers to switch to Click Energy.

Here's my report from The World Today

Employment regains its mojo with booming growth in June

Australia's jobs' market appears to have regained its mojo with employment lifting by almost 51,000 in June, the strongest expansion since late last year. 

ABC's Peter Ryan says the jobless rate remains steady at 5.4 percent.

Google hit with US$5 billion fine, told to stop blocking Android rivals

The global digital giant Google has been fined US$5 billion by the EU's anti-trust regulator for using its Android operating system to block rivals. 

Google has been warned the next fine might be tougher at five percent of its average daily turnover worldwide. 

ABC's Peter Ryan says the battle could feature in rising trade tensions between the US and the European Union.

Here's my report from this morning's AM program.

Rivals Fairfax, News Corp in historic deal to share printing presses

In a deal that confirms the financial viability of published newspapers remains pressured, Fairfax Media and News Corporation Australia have agreed to share their printing sites, which will see a number of plants ultimately close. 

ABC's Peter Ryan analyses a deal that a decade ago would have been considered unthinkable.

Here's my coverage from ABC News Online

Rising household debt leaves Aust "vulnerable to economic shock", Reserve Bank warns

High levels of household debt fuelled by record low interest rates and easy access to finance is a prominent feature of the Australia's real estate market, the Reserve Bank has warned. 

In the minutes from its most recent meeting, the RBA says some households are "more vulnerable to economic shocks". 

ABC's Peter Ryan goes through the minutes on The World Today.

CEO pay surges, boards "tone deaf" to social licence - ACSI report

Here's my story on ABC News Online

Chief executive pay has hit record highs as wage growth for workers continues to flatline and trust in big business ebbs.

That's the latest finding of a CEO pay survey from the Australian Council of Superannuation Investors which shows pay for company bosses is at its highest level in seventeen years thanks to "persistent and increasing bonus payments".

The startling results come against the backdrop of the financial services Royal Commission which has revealed unlawful, unethical and possible criminal activity in the banking and insurance sectors.

Chief executive Louise Davidson told me its evidence that big business is out of touch and "tone deaf" to community standards.

Indigenous bank customers in remote areas fazed by jargon, Royal Commission told

The financial services Royal Commission has heard about massive language, cultural and logistical challenges that indigenous Australians have when dealing with banks. 

ANZ Bank has been under pressure to explain its dealing with remote customers who are fazed by financial jargon and providing 100 points of identification. 

ABC's Peter Ryan is covering the Royal Commission.

Listen to today's installment broadcast on The World Today

Viva Las Vegas - big incentives see insurance sales staff target vulnerable indigenous communities

Listen to today's installment where Let's Insure chief executive Russell Howden is grilled by senior counsel assisting Rowena Orr QC


Incentives including a Las Vegas gambling trip, Vespa motorscooters and ocean cruises were responsible for a spike in unethical funeral insurance sales to indigenous communities, the financial services Royal Commission has heard. 

Let's Insure chief executive Russell Howden conceded that the rush to win awards under the program was a significant factor in ramped-up sales to Aboriginal and Torres Strait Islander customers. 

ABC's Peter Ryan says Let's Insure sacked two staff who abused the incentives program by targetting postcards with the biggest indigenous populations.

Former PE teacher now insurance boss targeting indigenous communities admits he has no formal qualifications

Here's my lunchtime take on the Royal Commission broadcast on The World Today

The head of an insurance company which targets indigenous communities has conceded he has no formal qualifications in the sector.

Bryn Jones, chief executive of the Aboriginal Community Benefit Fund, said he was a physical education teacher who got the job after meeting a contact of his father in a coffee shop.

ABC's Peter Ryan is covering the Royal Commission and says ACBF has no affiliation with indigenous communities.

Follow the live ABC blog

Credit card users struggling under mountain of debt that may never be repaid, ASIC report shows

Listen to my report on this morning's edition of AM

Full story here


One in six consumers is struggling under a mountain of credit card debt that might never be repaid, according to alarming research by the corporate regulator.

The Australian Securities & Investments Commission (ASIC) says 18.5 percent of consumers are overwhelmed by their credit card debt load with outstanding balances now totalling $45 billion.

The study says banks and credit card companies are in the midst of a revenue bonanza with interest being reaped on $31.7 billion of that $45 billion debt figure.

ASIC warns that enticing credit card offers - notably balance transfers from one card to another - are "a debt trap" with 550,000 people in arrears and 930,000 with persistent debt as of June 2017.

A review of 21.4 million credit card accounts opened in the five years to June last year estimates that consumers could have saved $621 million in a single year if they had switched to a more appropriate credit card with fewer frills and a lower interest rate.

The revelations come as financial institutions face daily heat from the banking Royal Commission which has uncovered persistent unethical and in some cases unlawful behaviour.

To counter the growing debt mountain that is lucrative for banks but bad for customers, ASIC is proposing tougher regulations to ensure consumers are only given credit limits that can to repaid within three years.

ASIC deputy chairman Peter Kell says despite rules introduced in 2012, not all credit providers have taken proactive steps to counter persistent revolving debt.

Mr Kell outed four lenders - Citi, Latitude, American Express and Macquarie - for retaining old rules for credit cards opened before June 2012 with 525,000 customers paying more interest than they needed to.

"There are a number of failures by lenders to act in the best interests of consumers," Mr Kell said.

"We expect them to respond swiftly to our finance and we will be following up to ensure the problems we have identified are addressed."

ASIC says while the four credit card providers identified are not breaking the law, they are over-charging longstanding customers and "their conduct is out of step with the rest of the industry."

However in response to a new Banking Code of Conduct, Citi and Macquarie will dump the grandfathered methodology from next year. American Express is also expected to update its policy and Latitude is reviewing its position.

The research also says credit card debt carried by young Australians is "of particular concern".

"Young people were more likely to be in delinquency and multiple card were over-represented," the ASIC study warns.

The ASIC paper cites the findings of a senate inquiry about the dangers of balance transfer cards where consumers transfer some or all of their credit card balance and pay low or no interest over a promotional period.

"In the senate inquiry's view, these transfers can be present a debt trap for consumers .. if they fail to pay off the balance in the promotional period, keep the card the balance was transfered from .. or make new purchases on one of more of the cards," the research says.

ASIC says that over 30 percent of consumers increase their debt by ten percent of more after transferring a balance to a promotional "balance transfer" card.

ASIC says the profit motive by banks and credit card companies means few have taken proactive steps to protect the interests of their customers finding that:

* nine of the 12 providers do not proactively contact consumers that make payments at or near the minimum amount to repay more of their outstanding balance

* eight of the 12 providers do not look for signs of potential consumer harm other than training frontline staff to look for signs of financial difficulty

"Consumers who are in persistent debt, or repeatedly making low repayments, are profitable for credit providers," the research says.

"However, providers have obligations to conduct themselves efficiently, honestly and fairly."

ASIC has released a consultation paper to tighten rules on credit card lending to prevent consumers from being signed up to unsuitable credit card contracts.

The proposal - which is likely to be opposed by credit card providers - is scheduled to come into effect from January 1 next year.

NAB interrogates customer who claims bank sent him broke

National Australia Bank has cross-examined a business customer who says he was sent to the wall when the bank pulled in his debts at the height of the global financial crisis. 

Ross Dillon who ran National Music sold his house to put $300,000 into the business but the NAB clawed back all the proceeds to pay off his outstanding debts. 

ABC's Peter Ryan says it's the first time a bank has aggressively defended its actions during the hearings.


Here's my story from The World Today

ASIC boss James Shipton says cancelling a financial services licence an option not taken lightly

ASIC chairman James Shipton confirms the regulator has the option of suspending or cancelling a financial services licence, but says it is not a unilateral or automatic power. 

ABC's Peter Ryan says if ASIC wins tougher powers from the federal government, it would be truly seen as a tough corporate cop on the beat.

Listen to my coverage on this morning's AM

Hotel developer says Bankwest harsh tactics during global financial crisis sent him broke

The financial services Royal Commission has been hearing about harsh tactics used by the Commonwealth Bank-owned Bankwest to pull in a hotel developer's business loan at the height of the global financial crisis. 

The action by Bankwest to claw back loans has been described by developer Michael Doherty as a "cash grab" that ultimately sent him broke. 

ABC's Peter Ryan says it's the latest evidence of banks playing hard at the time of the financial crisis.

Here's my report from The World Today

Super timebomb? Australia's superannuation system outdated says landmark Productivity Commission report

Australia's superannuation system is an "unlucky lottery" for many members, with nest-eggs being eroded by unnecessary fees and underperforming funds. 

A damning draft by the Productivity Commission out today says the $2.6 trillion industry created by Labor Prime Minister Paul Keating in 1992 now has major structural flaws. 

Commission deputy chair Karen Chester tells ABC's Peter Ryan that workers should be given a single default account when they start their careers to eliminate multiple accounts and fees that run into billions of dollars each year.

Listen to my report from this morning's AM program where I speak with Productivity Commission deputy chair Karen Chester

Read my story from ABC News Online

Here's the Productivity Commission's draft report

Financial services ombudsman agrees widow needed more time to repay Suncorp loan

A grieving widow should have been given more time to repay her late husband's outstanding loans to Suncorp, the financial services Royal Commission has heard. 

Philip Field from the Financial Ombudsman Service agreed in hindsight that giving Jennifer Low twelve to eighteen months to settle the loans was not realistic and that he should have contacted Suncorp to change the terms of the repayment.  

Here's my report from The World Today

Racial discrimination proven in migrant worker exploitation case; Fair Work Ombudsman Natalie James cites "uncomfortable truth"

Two Malaysian workers of Chinese descent in Australia on temporary visas were deliberately exploited, underpaid and discriminated against by a Tasmanian hotel operator because of their race, a Federal Circuit Court judge has ruled. 

Read my story on ABC News Online

The landmark outcome of action by the Fair Work Ombudsman's first racial discrimination litigation has seen the now former hotel operator fined a total of $211,104. 

ABC's Peter Ryan speaks with Fair Work Ombudsman Natalie James who says it highlights "an uncomfortable truth" about the exploitation of migrant workers on 457 visas.

Fair Work Ombudsman v Yenida Pty Ltd

Westpac cut corners in classifying loan residential rather than commercial

The financial services Royal Commission has heard how the race for banker commissions might have contributed to a loan being wrongly classified as residential rather than commercial. 

Westpac executive Alastair Welsh conceded that a Bank of Melbourne banker got it wrong and may have been driven by performance targets in cutting corners to get the loan approved. 

Away from the Royal Commission, the Commonwealth director of public prosecutions Sarah McNaughton says there is no confirmation that her budget for fighting financial crime will be extended beyond this financial year.

Here's my report from The World Today

Bank of Queensland admits error on approving franchise loan which went into immediate default

The financial services Royal Commission has heard that the Bank of Queensland mishandled a small business loan for a teacher to buy two Wendy's franchises which went into immediate default. 

Away from the Royal Commission, ABC's Peter Ryan says Westpac has had a partial victory after being accused of manipulating the bank bill swap rate. 

The Federal court says while Westpac breached the ASIC Act four times, ASIC was unable to prove the market manipulation or market rigging.

Here's my report from The World Today

Read the key except from the Westpac BBSW ruling from Justice Beach

Reserve Bank governor Dr Philip Lowe warns surging China debt risks "serious accident"

Reserve Bank governor Dr Philip Lowe has warned that surging debt levels in China raises the risk of a "serious accident". 

Speaking at the Australia-China Relations Institute, Dr Lowe did not directly comment on political tensions between Australia and China but said there "can be ups and downs" in all relationships. 

ABC's Peter Ryan says Dr Lowe's direct comments are significant given concerns about Australia's diplomatic impasse with China.

Here's my report from this morning's AM

Read the speech from Dr Philip Lowe

Royal Commission questions "personal responsibility" of small business borrowers when loans go bad

The personal responsibility of small business borrowers who take out loans to buy franchises has been questioned at the financial services Royal Commission. 

ANZ executive Kate Gibson says the ability of borrowers to service repayments is a critical feature in approving a loan. 

Counsel assisting Michael Hodge QC suggested it was important for borrowers to take personal responsibility for repayments and to identify potential problems in a business.

Here's my take of this morning's hearings

Banking Royal Commission: Westpac maintains its followed policy in decision to seize disability pensioner's home

Westpac continues to maintain it acted appropriately and within policies when it agreed to make a disability pensioner guarantor for her daughter's business loan. Appearing at the financial services Royal Commission, Westpac executive Alastair Welsh said the bank followed process which included advising pensioner Carolyn Flanagan to seek her own legal advice. ABC's Peter Ryan says Westpac's reputation has been damaged by suggestions that it treated Ms Flanagan harshly and did not take into account her financial and medical circumstances.

Same sex vote helps stem Australia Post snail mail losses - for now

The same sex marriage survey has provided a one-off boost to Australia Post's traditional business which continues to be hit by a decline in "snail mail" letter volumes.

Australia Post says without the Australian Marriage Law Postal Survey creating a $26.3 million revenue surge late last year, a ten percent fall in traditional letter volumes would have been "even sharper".

But chief executive Christine Holgate - who took over last year from Ahmed Fahour - has warned that despite the boost from the same sex vote and $113 million in savings she expects Australia Post to swing back into loss in the second half of the year.

"Due to the strong seasonal nature of our business, we expect to again make a loss in the second half. The results demonstrate the significant challenge for Australia Post to continue to transform," Ms Holgate said. 

In its half year results to December 31 released today, Australia Post said addressed letter volumes have fallen more than 26 percent in the past three years as large organistions continue to move their communucations online.

Australia's Post has reported a 65 percent improvement in half year profit after tax of $217 million helped by property sales and one off benefits.

An eight percent increase on its parcels business has seen revenues increase by three percent to $3.6 billion.

Australia Post is continuing to struggle with maintaining its traditional bricks and mortar portfolio of post offices while transforming into a parcels business.

"It is critical for Australia Post to continue to meet the needs of Australians by maintaining a healthy and viable Post Office network, including our Licensed Post Office partners," Ms Holgate said.

"We are currently working to find new revenue streams for our Post Offices, as their role in communities becomes increasingly important to serve an ageing population and with traditional services closing branches." 

Australia Post has an obligation to provide a service that is "reasonably accessible to all people in Australia, wherever they reside or carry on business."

In today's report, Australia Post said it has 15,160 street post boxes; 4,369 post offices nationwide including 2,541 post offices in regional and remote areas.

Ms Holgate pointed to strong growth from Asia with inbound parcel volumes up by 45 percent in the period with most of the growth coming from China.

She said almost two-thirds of Australia Post's revenuee coming from competitive markets but highlighted concerns about its share in the deliveries business with trading flat with growth of just one percent.

Seven West human resources policies "stress tested" and "fine" in wake of Amber Harrison scandal says Tim Worner

Seven West Media chief executive Tim Worner says the company’s human resources policies have been “stress tested” after reputational fallout from his ill-fated affair with former executive assistant Amber Harrison.

In response to questions from the ABC, Mr Worner added that the network’s policies were “fine” despite allegations that the network mishandled sexual harassment allegations by Seven cadet journalist Amy Taeuber who was sacked last year after making an official complaint.

“I think that we’ve definitely stress tested our human resources policies but actually we found that they were fine,” Mr Worner said.

“We’ve undertaken a little more work in terms of making sure that our people know what the rules are. Certainly, in the last six months we’ve undertaken a fair bit of work in that regard.

“But in terms of your question pointing to some sort of deficiency I think that is wrong.”

Asked if he was confident all necessary steps have been taken to ensure all Seven staff were treated properly, Mr Worner replied told the ABC “that’s correct”.

Mr Worner was briefly quizzed on Seven’s handling of complaints in the wake of the Amber Harrison scandal after revealing a surge in half year net profit to $101.7 million.

Seven won orders against Ms Harrison last July to ensure she complied with a confidentiality deal that prevented her from revealing confidential documents gained during her employment with the network and her affair with Mr Worner.

The company’s human resources policies were also in the spotlight last September after cadet journalist Amy Taeuer claimed she was dismissed from Seven’s Adelaide newsroom after complaining about sexual harassment by a male colleague.

Seven’s half year profit turnaround to $101.7 million from $12.4 million in the previous correspondent period comes after significant cost cutting and a decision to temporarily suspend its dividend to shareholders.

Seven West Media shares rocketed on the profit result and ended the day 18.6 percent higher at 60 cents a share.

1987 crash - veteran commentator Robert Gottleibsen says it could happen again

I speak with Robert Gottliebsen on The World Today

Listen to the ABC's "AM" program from October 20, 1987

A weather blip? IMF downgrades Australia's economic growth outlook

Weaker mining exports and housing investment hurt by bad weather earlier this year have prompted the International Monetary Fund to cut its growth forecasts for the Australian economy.

In what appears to be a blip, the IMF's latest World Economic Outlook released overnight has sharply revised Australian growth down to 2.2 percent in 2017 from projected of 3 percent just six months ago.

Read the IMF report here

While Australia's economy is expected to recover in 2018, the forecast has also been softened to 2.9 percent down from an anticipated 3 percent.

"Growth is expected to soften temporarily to 2.2 percent in Australia, where housing investment and mining exports in the first half of the year were undermined by bad weather," the IMF says.

Treasurer Scott Morrison, in Washington for the IMF's annual meetings, said he remains committed to the government’s own budget forecasts but will take the IMF's outlook into account.

"We'll obviously revise or review that as necessary as we go into the mid-year economic statement. That's the time to do that," Mr Morrison said.

While not rejecting the IMF's revision, Mr Morrison pointed to "encouraging" economic data including the latest business survey from the NAB which described business conditions as rock solid.

"So the better days I spoke about in the budget is being borne out by this data and let's not forget 325,000 Australians getting a job last year," Mr Morrison said.

The IMF has cited the impact from Cyclone Debbie in March as a factor where delays in coal transportation triggered a decline in the coal price index which has since recovered by 16.5 percent.

The report says strong demand from China assisted in the price recovery in addition to labour dispute at Australian mines restricting supply.

The IMF has urged Australia to use low interest rates to deal with an "infrastructure deficit" alongside Canada, Germany, the United Kingdom and the United States.

It urges greater attention to upgrading surface transportation and improving technologies such as high speed rail, ports, telecommunication, broadband and green investments.

"After three decades of almost continuous decline, public investment in infrastructure and the stock of public capital as a share of output are near historic lows in advanced economies," the IMF says.

"Many countries could take advantage of the favourable funding environment to improve the quality of the existing infrastructure stock and implement new projects."

The IMF also raises concerns about stalling reforms to productivity and work practices once again singling out Australia in addition to Greece, Italy, Japan and Spain.

"Persistently sluggish productivity in some countries has led to greater emphasis on product and labor market reforms," the IMF says.

"These reforms have been found to raise productivity and employment and to improve resilience to shocks."

The IMF's slight revision comes after 26 years of continuous economic growth in Australia where fallout from the global economic crisis was largely avoided because of the mining investment boom and government support to banks.

Cautious confidence about the global economy is based on the IMF forecasts for pickups in investment, trade and industrial production after a long period of slow growth and low inflation.

Australia well-placed to adapt to driverless car world says former US Transport Sec Rodney Slater

Australia is well positioned to adapt to the new world of driverless vehicle technology given its widespread use in the resources sector, according to former US transportation secretary Rodney Slater.

Speaking in Sydney, Bill Clinton's transport czar in the 1990s says while regulators grapple with the issues of automation, Australia is in a positin to teach the rest of the world.

"If you look at most of your mining, you already have autonomous vehicles doing a lot of that work," Mr Slater told the ABC.

"It's in a structured and limited environment but that's exactly the kind of environment we have to create for automation to be used in cities like Sydney and Melbourne.

"I think you have the kind of public leadership and the kind of dynamic corporate leadership to help Australia to not only be a player but a leader."

But Mr Slater said Australia and the world needed to look beyond comparing automation to fantasies played out on The Jetsons and Star Trek.

"Imagine your elderly parents who may have had to give up the ability to drive or someone who has a disability and can't drive can now being able to enjoy it in a way that is independent for them," Mr Slater said.

"That's really the magic of this expansion of transportation and portability that automation provides."

Mr Slater says a challenge for governments. regulators and motorists will be how traditional cars driven by humans share roads with automated vehicles.

"I think we'll get to a point where we'll have to have set routes in certain parts of certain areas you're likely to have set routes for all vehicles that will allow for greater automation."

However, Mr Slater says trust is a major factor and worried that some technology like drones could be "weaponised" and possibily exploited alluding the last week's deadly mass shooting in Las Vegas.

"But we cannot live being paralysed by fear. We cannot allow something just because it can be used for ill to not have the benefit of being used for good," Mr Slater said.

"I think both the public and private sector have a responsibility to help the public with these types of vehicles and with this new technology."

Mr Slater says 94 percent of motor vehicle accidents are caused by human error meaning automated vehicles could be important in lower the road toll.

China tourism to boom says ACBC as John Brumby rejects concerns about Chinese influence

Former Victorian premier John Brumby has rejected concerns about China's influence in Australia higher education sector as he projected the flow of Chinese tourism is about to boom.

Speaking as president of the Australia China Business Council, Mr Brumby sought to downplay comments from Foreign Affairs& Trade secretary Frances Adamson that universities need to remain secure and resilient against potential foreign interference.

"We don't see that in business. I think with influence every country around the world exerts its own influence internationally and China is no different," Mr Brumby told the ABC's AM program.

"What we've got to make sure in Australia is that we stick to our values and our views around the world."

Mr Brumby said that in his role as a university lecturer he has seen no evidence of influence or interference that concerned him.

"My first hand experience as someone who has a lot of contact with students from masters level down is that I don't see any influence. I see happy students , keen students, students who want to learn."

Earlier this week, the federal education minister Simon Birmingham agreed with Ms Adamson that Australian universities needed to be vigilant about their academic integrity and independence.

Concerns about China's growing influence came as the Australia China Business Council released research showing the number of Chinese tourists visiting Australia is set to more than triple to 3.3 million per year by 2026

The report conducted with LEK Consulting and Trade Victoria says over a million Chinese tourists visited Australia last year and spent $9.2 billion underscoring the deepening economic and trade relationship.

However, Australia’s ability to handle the projected Chinese tourist boom has been highlighted as a concern, with a China Readiness Score delivering a score of 65 out of 100.

John Brumby points to recommendations urging better Mandarin signage, improved transport and the availability of Chinese payment options like Alipay.

Mr Brumby says Australia's accommodation sector is particularly under pressure from the expected boom in Chinese tourist numbers,

"We're not really ready. We've had issues with Chinese new year when you get 150,000 or 200,000 tourists and the hotels struggle," Mr Brumby said.

"So if they are struggling now they're really going to struggle with 3.3 million visitors ."

The rise of Chinese tourism is also likely to overtake the importance of Australia exports of iron ore to China, according to Mr Brumby.

                           

"Put education, financial services and tourism together and the services market for a state like Victoria is already much more important than the resources market."

Concerns about growing Chinese influence were fuelled when Frances Adamson used a speech in Adelaide to warn that universities needed to be on alert.

"We have seen attempts at untoward influence and interference," Ms Adamson said told an audience at Adelaide University's Confucius Institute.

"When confronted with awkward choices, it is up to us to choose our response, whether to make an uncomfortable compromise or decide instead to remain true to our values, "immune from intolerance or external influence" as Adelaide University's founders envisaged."