Category: Australian News

Today’s decision by the Reserve Bank will be extremely difficult news for many Australian families.

Shadow Treasurer Angus Taylor said Australians will rightly be concerned about what this means for their budgets and the difficult decisions they may have to make over the coming months.

Australians with a mortgage of $750,000 will now be paying $1,856 more each month. That’s over $22,000 more a year they will need to find.

“Today’s rate hike makes it very clear that Labor’s Budget did nothing to fight inflation,” Mr Taylor said.

“In the three weeks since the budget, we have seen markets, economists, and now the RBA itself react to the Budget by increasing their forecasts for inflation and interest rates.

“Labor has been in government for more than a year now. It’s delivered two budgets.

“This is Labor’s rate rise. This rate rise belongs to the government.

“This is the consequence of a government that has let inflation get out of control and has failed to take leadership on addressing the biggest economic challenge facing Australians.

“Australians cannot afford Labor’s complacency on inflation. The RBA has made it very clear that there is more pain in the pipeline. This is far from over.

“It is clear high inflation and rising interest rates are not coming from the War in Ukraine. They’re not coming from Vladimir Putin. Inflation is coming from Canberra.

“Interest rates will be higher for longer as a result of the decisions of this Labor Government.”

Introduction:

The financial landscape in Australia is undergoing a significant upheaval as interest rates continue to rise. Interest rates will always be higher under a Labor government, and people expect that. People didn’t expect the sudden and vicious rise of interest rates. 

The consequences of this alarming trend are dire, particularly for the hundreds of thousands of Aussies teetering on the edge of a looming ‘mortgage cliff.’ Let’s look at the 5 top aspects of the interest rate rises this year.

1. The Burden of Expired Fixed Mortgages:

News.com.au reports a growing number of Australians are bracing themselves for a sudden plunge into debt as their fixed-rate mortgages expire. In the next six months alone, a staggering 880,000 homeowners will have to switch from fixed to variable property loans, with a further 450,000 loans set to expire next year. Shockingly, data from CoreLogic reveals that 35% of all outstanding fixed mortgages will pass this year, repricing 23% of all home loans.

2. Soaring Costs and Financial Strain:

The consequences of the mortgage cliff are staggering. Homeowners, especially those on the fringes of major cities like Brisbane, Sydney and Melbourne, are particularly vulnerable due to their larger mortgages. For instance, a household with a $1 million loan may need to find an extra $2,000 per month or a staggering $24,000 per year to meet their mortgage obligations. These high costs paint a grim picture of many families’ financial strain.

3. Disproportionate Impact on Affordability:

The already unaffordable housing market further exacerbates the impact of rising interest rates. Average Sydneysiders, for example, must spend 52% of their income compared to 44% before the interest rate hikes. This alarming increase highlights the absurd nature of mortgages and the mounting pressure on homeowners. 

4. Struggling but Holding On:

While some Australians are cutting back and preparing for the worst that a Labor government will dish up on the mortgage front, data shows that 0.7% of homeowners are more than 90 days behind on their mortgage payments. This staggering figure will only lead to more homelessness, as 0.7% of Australians are thrown on the streets by an incompetent and chaotic Labor government, which will only exacerbate our housing crisis. 

5. House prices keep rising:

Because of reckless increases in Australia’s immigration intake, the property market has experienced a 2.3% increase since hitting a low in February. This growth means that some homeowners have seen a rise in the value of their properties. The Reserve Bank of Australia reports that only 2% of homeowners have experienced a decline in property value. This means it will be harder for Australians to buy a new home, instead of leaving our children with nowhere to live while foreigners buy all our houses.

Conclusion:

The rising interest rates in Australia have triggered a looming crisis known as the ‘mortgage cliff,’ with devastating consequences for homeowners nationwide. The burden of expired fixed mortgages, the soaring costs, and the disproportionate impact on affordability create significant financial strain.

(source: News.com.au)

Rale Rasic was a football pioneer who leaves a mighty legacy.

His playing talent brought him from his homeland in then-Yugoslavia to Footscray JUST. The joy and success he found there launched his coaching career and made Australia his home.

Only eight years after his arrival in Australia and at just 34, Rale was appointed coach of the Australian national team. A courageous choice that would launch a bold new era.

Rale had a passion for education and a great instinct for bringing out the best in his players. He set new standards for professionalism, fitness and commitment and achieved groundbreaking success.

Like all great motivators of people, Rale’s philosophy had a powerful simplicity. His players knew that he would do anything for them, if they worked hard for him.

Of course, Rale’s finest hour came when his Socceroos won through a gruelling and exhilarating set of qualifiers to make their first World Cup finals in 1974.

Against great footballing nations, that Australian team stood tall and they won many admirers here and overseas for their determination and resolve.

It would be 32 years before Australia returned to the biggest stage but Rale Rasic’s passion for the game and his belief in the potential of the country he had made his home never faded.

Like his dear friend Johnny Warren, he was one of Australian football’s keepers of the flame. Guiding and inspiring the next generation, commiserating in their setbacks and delighting in their success.

Sport loves a legend but few have done more to earn that title than Rale Rasic.

He will be greatly missed, fondly remembered and always respected.

May he rest in peace.

The political world is filled with people with sharp elbows, but Bruce Childs wasn’t one of them.

Guided in perfect tandem by the passion of his convictions and his unwavering kindness, Bruce was a gentle giant of the labour movement.

He was a trade union secretary. ALP official. Senator. National ALP Left convenor. Evatt Foundation president and life member.

A peace activist. A man of principle, commitment and loyalty.

A man who spoke up for those who couldn’t.

And a man who knew that the Labor Party could not live up to its ideals and potential until it counted more women in its ranks.

Bruce always placed what was right ahead of any sense of personal ambition.

He also knew what it was to be a representative of the minority group in Sussex Street. I believe “character-building” is one of the phrases used.

It’s telling that even at a time when politics was being played at its hardest, and anything resembling even cordiality across party lines was the rarest currency of all, Bruce was viewed with admiration and affection across the spectrum.

He was a man of so many facets.

And, like so many, I had the great fortune of being able to count him as a friend and mentor.

What he had within him was one of the most powerful combinations a human being can contain: gentleness and strength. Two great qualities that reinforced each other.

Few people were better placed to recognise that combination than another of its most noted practitioners, the great Tom Uren.

Tom described his dear friend as:

“… a patient negotiator and an outstanding administrator … [and]  one of the most outstanding collectivists I have known.”

When Bruce took his final leave of the Senate, he said something that has remained in Hansard as a guiding star for everyone since. And I quote:

“I have never identified with being a politician, but I really do identify with being a parliamentarian.”

Those are the words of a man who entered politics for the best possible reasons. A man who, amid all the noise and distraction and temptation, was guided by the truest spirit of public service – and we were all the better for it.

A man of integrity. A man who respected the best of our traditions and earnt the respect of all who had the privilege of knowing him.

We are here because we admired Bruce – all that he was and all that he stood for.

But above all, we are here because we loved him.

None more so than his family.

Yola, Steven and Bet – you are all so very much in our hearts. Bruce’s love lives on in you.

May Bruce rest in peace.

No amount of Minister Plibersek’s “formal commitments” to protect the Great Barrier Reef will provide cover from the impacts of new fossil fuel projects she continues to greenlight. 

Greens spokesperson for healthy oceans, Senator Peter Whish-Wilson said: 

“The Great Barrier Reef as we’ve been lucky enough to know it in our lifetimes isn’t dying by accident. It’s being degraded by governments content with greenlighting new fossil fuel projects which spew millions of tonnes of CO2 into our atmosphere and turbo charge the warming of our oceans. 

“It’s ironic that while Minister Plibersek was virtue signalling the Government’s commitment to protecting the Great Barrier Reef, just yesterday the BOM issued a grave warning of the increased likelihood of an El Nino event this summer, which could have devastating consequences for the Reef.

“No amount of money or Minister Plibersek’s ‘formal commitments’ to protect the Great Barrier Reef will protect it from an El Nino marine heatwave event caused by rising emissions from the burning of fossil fuels. 

“So long as Labor continues to greenlight new fossil fuel projects we will continue to see more annual coral bleaching events – end of story.

“Labor can throw all the money it likes at the Great Barrier Reef to avoid an embarrassing Unesco World Heritage ‘in danger’ listing, but the only thing that will save it from danger is a dramatic decrease in fossil fuel emissions. It’s new coral or new coal, you can’t have both.”

Today I welcomed Tuvalu’s Foreign Minister, Simon Kofe, to Adelaide. I was delighted to meet Minister Kofe again, after my visit to Tuvalu in April.

Minister Kofe’s visit was an opportunity to build on Australia and Tuvalu’s strong development and defence cooperation, people-to-people ties and discuss our shared aspiration for a safe, prosperous and resilient Blue Pacific.

Alongside all Pacific leaders, Australia recognises climate change is the single greatest threat to the livelihoods, security and wellbeing of the peoples of the Pacific. Australia is proud to be supporting Tuvalu’s Coastal Adaptation Project, to protect Tuvalu from the impact of rising sea levels and cyclones.

Australia is providing an estimated $17.1 million in Official Development Assistance in 2023-24 to Tuvalu for education, infrastructure and climate change. Australia is also providing budget support of $9.5 million to Tuvalu this financial year, including an increase of $5.5 million announced when I visited Tuvalu in April.

The links between Australia and Tuvalu also include support to manage maritime zones through the Pacific Maritime Security Program, and hosting Tuvaluans participating in the Pacific Labour Mobility Scheme, who make contributions to the economies of both countries.

During his visit to Adelaide, Minister Kofe and I toured the Nature of Culture Exhibition at the Art Gallery of South Australia. It was an opportunity to reflect on the contribution of Australia’s First Nations peoples to our international ties and the Pacific region.

The Australian Government has welcomed Qantas and Jetstar as the first airlines to sign up to the Western Sydney International (Nancy-Bird Walton) Airport (WSI) to operate domestic flights.

This agreement is expected to support more than 25,000 flights, carrying more than four million passengers, through WSI each year – and will support 700 jobs.

WSI is a transformational infrastructure project that will generate economic activity, provide long-term employment opportunities in the Western Sydney region, and meet Sydney’s growing aviation needs.

Delivery of Australia’s newest airport has now also reached another major milestone, passing the halfway mark.

Over 4,300 direct jobs have already been created by the airport’s construction, with half being from Western Sydney and around a third learning new skills on-the-job.

More than 250 Western Sydney-based businesses have been engaged by contractors across construction, catering, security and other sectors.

WSI is on track to start operations by late 2026.

Prime Minister of Australia Anthony Albanese said:

“It’s exciting to see Qantas and Jetstar being the first airlines to commit to Australia’s newest airport, which will offer international and domestic passenger as well as freight services from Western Sydney.”

“This is a strong sign of support from the airline industry and continues the commitment we are seeing from the business community to invest in Western Sydney. That means more jobs for Western Sydney locals, as well as unlocking opportunities for apprenticeships and other learning workers to advance their skills and experience.

“More than 11,000 direct and indirect jobs are expected to be created over the construction period, with thousands more set to be supported once operations begin – meaning WSI really is a game-changer for employment in the region, opening new opportunities across a range of exciting fields.”

Federal Infrastructure, Transport, Regional Development and Local Government Minister Catherine King said:

“Today we are welcoming Qantas and Jetstar as the first airlines to sign up to the airport, which will provide much-needed aviation services and bolster this critical Australian industry – all while championing sustainable features and practices.

“From the terminal to the airfield, sustainability is a key focus in the design and construction of WSI, which will consume less electricity, water and liquid fuels than comparative airports.

“With this first landmark agreement in place, Sydney’s new airport continues to pass milestone after milestone, with start of operations just around the corner. Construction has reached the halfway point just months after being assigned the three-letter WSI international airport code.”

No amount of Minister Plibersek’s “formal commitments” to protect the Great Barrier Reef will provide cover from the impacts of new fossil fuel projects she continues to greenlight. 

Greens spokesperson for healthy oceans, Senator Peter Whish-Wilson said: 

“The Great Barrier Reef as we’ve been lucky enough to know it in our lifetimes isn’t dying by accident. It’s being degraded by governments content with greenlighting new fossil fuel projects which spew millions of tonnes of CO2 into our atmosphere and turbo charge the warming of our oceans. 

“It’s ironic that while Minister Plibersek was virtue signalling the Government’s commitment to protecting the Great Barrier Reef, just yesterday the BOM issued a grave warning of the increased likelihood of an El Nino event this summer, which could have devastating consequences for the Reef.

“No amount of money or Minister Plibersek’s ‘formal commitments’ to protect the Great Barrier Reef will protect it from an El Nino marine heatwave event caused by rising emissions from the burning of fossil fuels. 

“So long as Labor continues to greenlight new fossil fuel projects we will continue to see more annual coral bleaching events – end of story.

“Labor can throw all the money it likes at the Great Barrier Reef to avoid an embarrassing Unesco World Heritage ‘in danger’ listing, but the only thing that will save it from danger is a dramatic decrease in fossil fuel emissions. It’s new coral or new coal, you can’t have both.”

Greens Treasury spokesperson Senator Nick McKim has responded to today’s decision by the RBA to raise interest rates for the twelfth time in thirteen months.

“The case is now overwhelming for Labor to step in and override the RBA,” he said.

“The RBA is engaging in a war on young people with Labor’s support.

“The total volume of retail sales is falling yet recent analysis by CBA of 7 million customers showed that older people are actually stoking demand.

“But Labor has caved to the establishment so young people are copping it in the neck, and the worst is yet to come.

“Young people are more likely to be renting or have recently bought a home, which means that they are paying the highest price for Labor’s culpability.”

“Young people are also more likely to be in insecure employment and be among the 130,000 people that are forecast to lose their job under Labor’s Budget.

“By the RBA’s own admission, interest rate increases are not the right tool to respond to the current bout of high inflation that is predominately a result of supply side pressures.

“Real wages are falling and the Treasury Secretary said last week that there are no signs of a wage-price spiral.

“Meanwhile corporate profits continue to rise.

“But the RBA is smashing renters and mortgage holders in a pathological pursuit of price stability.

“They are doing nothing to inspire any confidence among anyone but the already wealthy.

“In spite of all of the evidence that interest rates are not the right tool for the job, Labor has completely succumbed to central bank orthodoxy.

“Instead of leaving it to the RBA who will always use the one blunt instrument that they have, Labor should be dealing with the cost-of-living crisis by freezing rents, taxing super profits and the super rich, and putting dental into Medicare, wiping student debt, and raising income support.

“Jim Chalmers should also step in and use the powers that he has under Section 11 of the RBA Act to overrule the RBA to freeze interest rates.”

This World Environment Day the Greens are calling on the Government to back environmental laws that end native forests logging and the clearing of koala habitat. 

Greens spokesperson for the Environment, Senator Sarah Hanson-Young said:

“Today on World Environment Day it is time for the Albanese Government to put an end to native forest logging and the clearing of critical habitats. It’s time for the Environment Minister to cuddle fewer koalas and instead stop the logging of their homes. 

“The biggest threat to our wildlife is habitat destruction. Yet threatened species’ habitat continues to be destroyed at an alarming rate without assessment under our environment laws.

“Since April, the Environment Minister has had a list of 62 threatened species waiting for conservation protection on her desk. Yet nothing has been done to offer these species a lifeline and prevent them from becoming extinct. The Minister has the power to change this today with a ban on destroying their homes.

“The Federal Government has promised to introduce new environment laws by the end of year. The test for Labor is whether they actually protect the environment or simply fast-track approvals for mining companies and big developers. The laws will need the support of the Senate and Greens won’t be rubber-stamping anything. 

“The Environment Minister herself has acknowledged that our environmental laws are broken. If she is serious about making them fit for purpose to protect our wildlife, she must commit to a ban on native forest logging and ensure our new laws will adequately assess the clearing of threatened species habitat. 

“Words will not save our wildlife – we need urgent action. Now is the time for the Albanese Government to work with the Greens to implement a national ban on native forest logging and strong environment laws that protect our precious wildlife from extinction.”