On the 29th of September Australians were dealt another devastating blow. Australian families and businesses now grapple with the 16th rate rise under this government. Our cash rate is now at a 15 year high.
For families with a mortgage, this means even more pressure on household budgets. But for small businesses, the impact could be devastating. Higher borrowing costs make it harder to invest, expand, employ and plan for the future.
At a time when our small business community is already facing significant cost pressures and record levels of insolvencies across Australia, further rate pain is the last thing they need.
Four years ago, the cash rate was just 0.35 per cent. Now it is 4.6 per cent. For a homeowner with a $680,000 mortgage, the difference between a 0.35 per cent and 4.60 per cent interest rate represents roughly $29,000 a year in additional interest, before allowing for repayments of principal.
So how did we get here?
The facts are clear: Australia’s inflation problem is not a result of consumer spending. It is out of control government spending.
And whilst the Treasurer points to anything and everyone but himself, he cannot be unlucky 16 times.
Government spending has forced the hand of the RBA, and as a result rates continue to rise and Australian families and Australian businesses must tighten their belts. All the while facing higher costs, more expensive finance, and less certainty.
For our local small businesses, certainty matters. They need an economic environment where they can invest, take on staff, grow and compete – not one where rising costs and borrowing expenses make every decision harder.
Australia needs a government that takes the pressure off households and businesses – not one that adds to it. When Australians are being forced to cut back, governments should be looking at how they can do the same.
We have a plan to fix the economy and protect our way of life with lower taxes, cheaper energy, less government waste and more support for businesses.
If rising rates and higher costs are putting pressure on your business, I want to hear about it. Please get in touch with my office and share your experience or complete my small business survey.
Yours sincerely,
Angie Bell MP
Federal Member for Moncrieff
