October 2025

Read the Room: Technically right, tactically wrong

Two former governors of the Reserve Bank of Australia (RBA) popped up this month and showed why senior bureaucrats probably shouldn’t involve themselves in political debates. Or at least not until they get a little strategic comms training.

First up was Philip Lowe, still smarting from being cast as the villain during the rate hike cycle, and continuing to point the finger at undisciplined governments for making his time in the job harder by spending tax dollars. Meanwhile, Glenn Stevens couldn’t understand why Australians obsess over interest rates. His theory? There’s just “not enough else to talk about”.

Together, the pair of central bankers offered some revealingly out-of-touch commentary. Lowe was technically correct: government spending can make a central bank’s job harder since it tends to leave the hard work to monetary policy. But that spending is often on services that people depend on, and calls to rein it in can sound crass, especially from a senior bureaucrat on a salary north of $1 million a year.

Lowe suffered the same “technically right” curse during his tenure as governor when he said he couldn’t see interest rates rising until 2024. His observation came with a phalanx of caveats under which interest rates could rise, but that’s not what journalists, and the public, latched onto. Someone on that sort of money should have been more thoughtful in their communication (or hired someone who was).

Meanwhile, Stevens’ comment downplayed economic anxiety as media filler. The real reason Australians “obsess” over interest rates is because they affect the single largest debt most households are ever going to take on. When people are weighing up whether they should put the heating on in winter, the size of their monthly repayments matters to them. A lot.

Both forays suggest a fundamental disconnect with public sentiment — and a striking lack of self-awareness from two men whose decisions shaped household budgets more than most ministers ever will.

And herein lies the lesson. Being technically right isn’t enough. It’s not just what you say that matters, it’s how, when, and why you say it. Lowe’s complaints about being cast as the “baddie” may reflect a real tension between fiscal and monetary policy, but there’s little public sympathy when the messenger lacks empathy. Stevens’ shrug at public interest in mortgage rates reads as condescending at best.

This disconnect is exactly why the RBA overhauled its communications strategy. Michele Bullock now front-loads transparency with post-decision pressers and clearer messaging. Even so, economists risk losing the room when they lapse into technocratic detachment, something Bullock herself has been guilty of when she suggested unemployment needed to rise. Again, technically right, but seriously, read the room.

If you can’t see your message through the eyes of the people affected by it, you’ve already lost control of the narrative. Being technically right but tactically wrong is not a recipe for success.

The Spin: Copping it sweet

The Australian Securities and Investments Commission (ASIC) has slapped ANZ with a historic fine of $240 million after the bank admitted to multiple breaches, from misleading the Commonwealth on a $14 billion bond deal, to mishandling customer hardship claims, paying the wrong interest rates, and charging fees to dead customers.

It was, in the words of ASIC Chairman Joe Longo, “grubby” behaviour, while Prime Minister Anthony Albanese described it as “a shocker”. Being in the PM’s line of sight when you’ve been busted stiffing the Commonwealth government — not to mention charging fees to dead people — is not a place you want to be.

Yet beyond the initial headlines and reaction, the story pretty much disappeared. There are plenty of reasons why this was the case. Australian Financial Review senior reporter Jonathan Shapiro put it down to sterling work on the part of ANZ’s government relations team, which no doubt put in the hours keeping the lines of communication open between head office and Canberra.

But a couple of other factors came into play as well. One of which was probably a “meh” reaction from the public on the story. Yes the fine was huge, which is part of the reason for the headlines, but a bank ripping people off falls very much in the “dog bites man” category of news. What’s more, ripping off the Commonwealth is likely seen as a victimless crime in most people’s eyes. And most would probably dismiss charging fees to dead customers as standard banking practice.

Then there was ANZ’s response, which was to own the wrongdoing (they didn’t really have a choice) and promise not to be naughty boys and girls in the future. Oh, and those responsible would be held accountable. Whether that comes to pass is irrelevant to the immediate response. What mattered was that the bank didn’t deny or deflect, it “copped it sweet” quickly.

Doing so meant the government was in a position to let the story die. The bank misbehaved, got caught, admitted it, copped a massive fine and said they’d learned their lesson. The system works, let’s move on. Intransigence on ANZ’s part would have not only dragged the story out, it would have forced the government to spend political capital re-prosecuting a case ASIC had already won.

The upshot: three things are going to help you defuse a scandal:

• Own it early (so politicians don’t have to),

• Work your government relations channels, and

• Hope the issue doesn’t hit the public nerve.

Ok, hope is not a strategy, but the lesson is that even if it doesn’t strike a nerve with the public, make sure you don’t stick a pin in it with your response.

Eyes Up: Opportunities, tenders, and calls for input

The Commonwealth government has asked the Board of Taxation to find ways of reducing unnecessary compliance burdens and red tape in the tax system. While details are likely to be forthcoming, the board will consult with businesses and the broader community to identify areas of business tax law and administration where there are opportunities for red tape reduction.

The Productivity Commission is carrying out an inquiry into the 2018 Goods and Services Tax (GST) distribution reforms. The inquiry will examine if changes to the GST distribution system are operating efficiently, effectively and as intended. It will also examine ways in which the federal financial relations system can best promote fiscal sustainability across the states and territories and the Commonwealth.

The House Standing Committee on Education has launched an inquiry into how Australia can build stronger Asia capability through the education system and beyond. The inquiry will explore the teaching and learning of Asian languages, cultural literacy, and regional engagement across the life course — from early childhood through to tertiary education and into the workforce.

The Joint Standing Committee on Trade and Investment Growth is looking at ways to strengthen economic growth across rural and regional Australia. The inquiry will look at how to promote Australia’s “clean and green” agriculture, food and drink sectors; support rural and regional small and medium businesses in domestic and international markets; and better align tourism with food and drink experiences to boost agricultural exports.

Worth Your Time: Smart finds we’ve bookmarked for you

Stonefruit Media’s Aarti Betigeri interviews Indian author Arundhati Roy. The interview itself was the Spectrum cover story in The Sydney Morning Herald, and you can hear the entire interview on Soundcloud, where Roy expands on her writing style and her parental relationships.

Jack Appleby is a social media strategist who built one of the most-read newsletters in marketing, Future Social. Each week, he breaks down the latest platform changes, campaigns, and creator trends, but always with a focus on what they mean and how to apply them in practice. Instead of just sharing news, Appleby gives readers actionable insights they can use to shape their own strategies.

"Calling the president, or any member of this administration, a fascist is tantamount to inciting violence. We are not fascists, and if you call us fascists, we will throw you in jail." McSweeney’s Internet Tendency skewers the current US administration.