This week’s Reserve Bank of Australia (RBA) rate rise and its latest financial stability review are further danger signs that the Labor Government’s out-of-control spending is dragging Australians further into financial trouble, Federal Member for Parkes Jamie Chaffey MP says.
Mr Chaffey said Australians were now suffering under the highest interest rates in 15 years, with not only higher interest rates than major advanced economies, but higher inflation.
“It’s clear Aussie battlers are being asked to tighten their belts – again – while the Federal Government continues spending,” he said.
“I have heard from so many people throughout the electorate of Parkes, from small business owners and family investors to first home-buyers – they are facing financial hurdles at every turn, and it is near impossible to get ahead.
“This week, as well as the rate rise, the Reserve Bank released its October 2026 Financial Stability Review confirming the downturn in the housing market is leading to negative equity for first home buyers who have been lured into a falling property market by the government’s 5% Deposit Scheme.
“The RBA warned that recent buyers and high loan-to-value ratio borrowers were more likely to be in negative equity. This includes first home buyers who have taken up the 5% Deposit Scheme – often young people who have 95% mortgages in a market that is falling. It’s a scary prospect for young people who have borrowed to the absolute extent of their ability to get into the market.
“The RBA has also noted real disposable income per person fell in the first half of 2026, ‘mostly driven by higher inflation and increases in interest rates’.
“Things are not easy under Mr Albanese. Every single expense from insurance to power, to groceries and taxes is escalating, and the money coming in is going down.
“I’m worried about home owners, those trying to get into the market, small business owners, investors and retirees across the Parkes electorate. That’s why the Nationals have a plan that is aimed at fixing the economy and protecting our way of life.
“It is built around lower taxes, cheaper power, more sensible migration, and putting Australians first. You can read the plan at https://nationalsplan.org.au/”