Federal Member for Parkes Jamie Chaffey MP says the Reserve Bank’s decision to lift the cash rate for the fifth time this year will be another painful blow for families and businesses already struggling with the cost-of-living crisis.
“This means interest rates are at an 18-year high,” Mr Chaffey said. “It’s another huge kick in the teeth to people across the Parkes electorate who are already at breaking point. At 4.85%, Australia’s cash rate is higher than any major advanced economy.
“Now, a family with a $600,000 mortgage will have to pay another $125 a month in interest, and rest will also escalate as costs are passed on.
“Young people – particularly those who took up the Labor Government’s 5% Deposit Scheme – have been caught in a trap of negative equity. They have bought before this Labor’s Government caused the market to drop and now the value of their mortgage outweighs the value of their home.
“They are trapped in debt with no way out and that causes enormous stress.
“This is happening because inflation remains too high and, as economists and the Reserve Bank have warned, government spending is adding to inflation, further driving interest rates up.
“In addition to this, the extra taxes Labor promised we were never going to have is forcing small businesses into insolvency. The rate of insolvencies in Australia is at the highest level it has ever been – 46 insolvencies every day since the May Federal Budget was handed down. There have been 52,478 insolvencies since Labor came to government in mid-2022.
“We need small businesses. They make up the bulk of our economy, and employ more than five million Australians.
“It doesn’t have to be this way,” Mr Chaffey said. “The Liberals and Nationals have already found $31 billion in savings, with more to come. This would help take pressure off inflation and interest rates.
“We will fix the economy by cutting taxes, backing small business, and reducing red tape.”
You can read more about the Nationals plan here.