Joanne Ryan (Lalor, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. What does today's independent Reserve Bank interest rate decision mean for Australians?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Thank you to the member for Lalor. Congratulations to her tomorrow, on the ninth anniversary of her election to this place as part of the mighty class of 2013. The independent Reserve Bank has just announced its decision to increase interest rates by another 50 basis points, and that brings the cash rate to 2.35 per cent. This will be very difficult news for a lot of Australians with a mortgage. Once again, it isn't a surprise to anyone. The bank had flagged more increases, the markets had anticipated it and homeowners were expecting it as well. But the fact that we knew it was coming doesn't make it any easier for people. This is tough. This will tighten the screws on family budgets. This will put more pressure on a lot of Australians who are already stretched enough.

As the House would be aware, a half-percentage-point increase in the cash rate means average homeowners owing $330,000 will have to find about $95 a month more for repayments. For Australians with a typical $500,000 mortgage, it's about an extra $145 a month in addition to the extra $475 they have had to find since rates are started rising before the election in May. Interest rate rises do mean that Australians will have to make more hard decisions about how to make ends meet. It also means more difficult decisions for governments because higher interest rates mean a higher cost of servicing the trillion dollars of debt that has been left to us.

As I've said previously in this place and elsewhere, it's not for the government to interfere with the independent decisions of the Reserve Bank. It is our job to do what we responsibly can to help Australians deal with these pressures in the near term and to build a much more resilient economy into the future that is able to withstand some of these global and domestic shocks. Our jobs summit, our economic plan and our budget are all deliberate and direct responses to these economic circumstances that were left to us: high and rising inflation, flat and falling real wages and productivity paralysis. That's why we are doing so much to ease the cost of living, whether it comes to child care, wages or medicine costs.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business will cease interjecting.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

It's why we are working to help deal with the issues in our supply chains, which the Prime Minister mentioned in response to the question from the member for Kennedy.

All along we have been upfront about the nature of this inflation challenge. We have been realistic about the decisions taken by the independent Reserve Bank and we will continue to work around the clock to make this economy more resilient so that Australians, especially right now with a mortgage and doing it especially tough, know that the government is doing what it can to deal with those parts of the inflationary pressures where we can have a meaningful influence.

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. Today more than three million Australians with a mortgage face a fifth consecutive interest rate increase. Can the Prime Minister tell those Australians how much more they will pay on a typical mortgage as a result of all of those increases?

Government Members:

Government members interjecting—

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The member for Moreton and the Minister for Climate Change and Energy will cease interjecting. Members on my right will cease interjecting. I call the Prime Minister.

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

They're nothing if not agile! I refer to the Treasurer's answer. He just said that if you've got a $330,000 mortgage you'll pay an extra $95. If it's $500,000, it's $145—

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

That's not a typical mortgage.

Ms Catherine King (Ballarat, Australian Labor Party, Minister for Infrastructure, Transport, Regional Development and Local Government) Share this | Link to this | Hansard source

That's the average—maybe not yours!

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

In Angus Taylor land it's not the average, but in the real world it's the average.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The Prime Minister will refer to members by their titles.

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

In the member for Hume's world it mightn't be the average, but it is actually the average mortgage, which is what he asked.