Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for Banks for that question. Before I directly answer that question, I would like to report to the House that the Reserve Bank has now decided to keep the cash rate steady at three per cent. This means that a home owner, say, with an average mortgage of around $300,000, remains around $5,000 better off per year compared to when this government came to office. The RBA has cut rates repeatedly over the last 15 months partly in response to global volatility but also because the government has been running a very strong fiscal policy that has kept inflation contained and given the Reserve Bank of Australia flexibility and room to cut rates. I was asked by the member for Banks about why we must put in place reforms to strengthen our economy—to strengthen our economy for our children and our grandchildren, because reform can be pretty tough; it can be hard yards.

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