Families at Breaking Point as Interest Rate Hike Crushes Household Budgets

Federal Member for Dawson, Andrew Willcox, has warned that North Queensland families are being pushed to a financial breaking point following today’s decision by the Reserve Bank of Australia to raise interest rates to 3.85 per cent.

The 25-basis-point hike is the first in over two years and signals a deepening cost-of-living crisis that is being directly fuelled by the Albanese Government’s inability to control its own spending.

Mr Willcox said the rate rise is a devastating blow for mortgage holders who have already seen an extra $21,000 stripped from their pockets since Labor took office. He noted that while the Prime Minister promised Australians that "life would be cheaper" under a Labor government, the reality in Dawson is an unsettling erosion of the family budget.

For many families, the "Australian Dream" is being replaced by an economic nightmare, a daily struggle to balance the books as inflation continues to act as a silent thief. The pressure is particularly acute for those who have young families, navigating the Christmas credit card and "back-to-school" expenses.

Recent data shows that education costs have surged by 5.4 per cent, while childcare fees have exploded by an incredible 11.2 per cent.

“It is a disgrace that in a country as prosperous as ours, a childcare place can now cost as much as a year at an elite private boarding school,” Mr Willcox said.

“These are barriers preventing parents from returning to work, making this cost-of-living nightmare even harder on families.”

Mr Willcox argued that these rising costs, combined with higher mortgage repayments and a saturated rental market, are making it nearly impossible for working parents to get ahead.

“This economic pain is not an accident, but a direct result of Labor’s record-breaking spending,” Mr Willcox said.

New budget data has revealed an unbelievable $50 billion blowout in government spending over just six months; a rate of more than $200 million per day.

“While families are being forced to make hard decisions and cut back on essentials, this Labor Government continues to pour fuel on the inflationary fire with taxpayer money,” he added.

The Member for Dawson has supported Senator Matt Canavan in calling for the immediate resignation of Treasurer Jim Chalmers. Senator Canavan initiated the call in the Senate today, following revelations of a staggering $50 billion blowout in government spending over just six months, a rate of more than $200 million per day.

“I am standing with Senator Canavan in saying enough is enough. “Jim Chalmers has overseen the biggest spending blowout in Australian history, and it is hard-working families who are settling the bill,” Mr Willcox said.

Senator Canavan noted that if a CEO in the private sector presided over a $100 billion blowout, they would be sacked on the spot.

“We should expect the same standard of accountability for the person holding the nation’s chequebook,” Mr Willcox said.

“This crazy level of spending is exactly why interest rates went up today. You cannot pour $200 million of taxpayer money onto the fire every single day and not expect inflation to burn.”

Mr Willcox warned that the rate hike would not only hurt mortgage holders but would also place even more pressure on an already suffocating rental market.

“It’s never easy under Albanese.

“Every time the Treasurer spends, the families in Mackay, the growers in Bowen, the tourism operators in the Whitsundays, the soldiers in Townsville and the workers in the Burdekin pay the price.

“My team and I will continue to fight to hold this Government to account for every dollar they waste and every promise they break.”

ENDS

Contact: Amanda Wright | Media & Communications Adviser
P | 07 4944 0662 M | 0455 456 705 E | Amanda.Wright@aph.gov.au