ACOSS welcomes the RBA decision to pause interest rate rises

ACOSS welcomes the RBA’s decision to hold the official cash rate at 4.1% and avoid further increases in unemployment in the coming year. Every additional interest rate rise leads to job losses down the line. 

Interest rate hikes this year have already caused harm, which will be evident over the next 12 months. The RBAs own estimates indicate that unemployment will rise to 4.5% – that’s 150,000 more people out of paid work.  

To assure the community that more people won’t be sacrificed to unemployment to curb inflation, the Government and RBA should urgently reach a new agreement on monetary policy that includes a clear commitment to full employment – that is, enough jobs for all who seek them. 

The peak body is also urging the government to take action to prevent people facing additional financial distress and address inflation at its source. 

They’re calling for better regulation of rents, further action to reduce energy costs, and strengthening competition in markets where a handful of companies dominate, and abolish the Stage 3 tax cuts. 

“These tax cuts will hand an extra $9,000 a year to people on more than $200,000 and will needlessly fuel inflation.” 

ACOSS is calling on the government to: 

  • Abolish the inflationary and inequitable Stage 3 tax cuts  
  • Lift Jobseeker, Youth Allowance, and related payments to at least $76 a day. Following the recent Federal Budget, JobSeeker will still only be $53.85 per day when it is increased in September, with Youth Allowance just $42.85 per day. 
  • Work with the states and territories to implement better regulation of the private rental market to protect against exorbitant rent increases. 
  • Take further action to reduce energy costs and bills especially for people on low incomes including invest further to make homes energy efficient and electric, and reduce crippling energy debt.