Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Is the Prime Minister aware that new figures produced by the Reserve Bank from last week’s June quarter national accounts show a new record 9.1 per cent of household income is consumed by mortgage interest repayments? Is the Prime Minister aware that, under the new interest rate reality, this level is 50 per cent higher than the peak reached under Treasurer Keating in 1989? Is the Prime Minister concerned that the interest burden is likely to go even higher, once the last rate hike on 2 August is included in the figures? Why does the Prime Minister continue to deny interest rate rises under his government hurt middle Australia more than they did under Mr Keating?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The figure is higher because the size of mortgages is much higher, because the cost of housing is much higher. That is the reason. The question must be rhetorically asked: can you imagine what it would be at if we were paying 17 per cent, as we were under Mr Keating.