What’s happening?
Federal MP Henry Pike says Labor’s spending decisions are driving higher costs for families across the Redlands.
In a media release, he links rising interest rates, household bills and mortgage stress to the Federal Government’s growing debt and spending levels.
Mr Pike said government spending under Labor is now at its highest level outside a recession in almost 40 years. He said spending growth is running 13 times faster than was budgeted under the previous Coalition Government.
Why it matters?
Mr Pike says higher government spending is keeping inflation higher for longer. He argues this is forcing the Reserve Bank to lift interest rates, adding pressure to households already facing rising everyday costs.
“These pressures come on top of soaring grocery prices, higher power bills and rising insurance premiums,” he said.
Local impact
Mr Pike says Redlands households are being hit hard by higher mortgage costs and rental pressure. He said the flow-on effects are being felt through housing stress and reduced household budgets.
“The consequences for Redlands are serious,” he said.
By the numbers
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$50,000 every minute is what Australian taxpayers are paying to service interest on the Federal Government’s $1.2 trillion debt, according to Mr Pike. He said this money could instead support local roads, health services and community infrastructure.
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$50 billion in new spending decisions has been added this year alone, which Mr Pike said is almost the size of the entire defence budget.
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$23,000 per year is the additional interest the average Redland mortgage holder is paying compared to when the Albanese Government came to office, according to Mr Pike.
Zoom in
“The average Redland mortgage holder is paying around $23,000 more per year in interest than they were when the Albanese Government came to office,” Mr Pike said.
“One in eight Redland households is already experiencing mortgage stress, and that number is expected to rise further following this week’s interest rate decision.”
He also pointed to rental pressure across the region.
Mr Pike said the National Rental Affordability Index now rates every mainland Redlands suburb as unaffordable.
Zoom out
Mr Pike said official figures show inflation accelerated again in December.
He said this led to the 13th interest rate rise since Labor came to office.
The Reserve Bank now expects inflation to remain above target for at least another two and a half years.
“Redlanders are paying the cost of Labor’s reckless spending three times over through higher taxes to service Labor’s debt, through higher prices at the checkout, and again through higher interest rates as the Reserve Bank is forced to clean up the mess,” Mr Pike said.
“It’s no wonder Australia has suffered the biggest collapse in living standards in the developed world since Labor came to office.”
What to look for next?
Mr Pike said further cost pressures could follow if inflation remains above target.
“Redlanders deserve better than reckless spending, ballooning debt and endless interest rate rises,” he said.
“We can and must do better.”
