16 News

The RBA’s string of 12 interest rate rises in 13 months will mean an additional $11 billion lost revenue for the Commonwealth budget, PBO figures show.

Max Chandler-Mather, Greens spokesperson for housing and homelessness said:

“This week’s interest rate rise is set to cost the government an extra $550 million in tax handouts for property investors next year alone – on top of the $12.4 billion that negative gearing and capital gains will  cost the budget next year.” 

“This is another half a billion dollars the government should be spending on building public and genuinely affordable housing, not handing out massive concessions to property moguls.”

“Rather than spending tens of billions every year on hand outs for property investors that turbocharge house prices and go overwhelmingly to the top 10%, the government should be spending billions every year on building public and affordable housing and incentivising states to freeze rent increases.”

“When 1% of taxpayers own a quarter of all investment properties, it’s clear that our broken housing system only works for the wealthy. The government needs to explain how they can justify spending an extra half a billion a year on tax breaks for investors when they can’t find a single dollar of guaranteed funding for public housing or to freeze rents.” 

Nick McKim, Greens spokesperson for Treasury and Economic Justice said:

“These figures show that renters just can’t win.”

“In addition to getting smashed by massive rent rises, their taxes are being used to subsidise their landlords’ profits.”

“Current policy settings are ripping apart our country’s social fabric. It’s time we reformed the tax system to transform housing from an investment class into a human right.”

The PBO costings are available here.

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.