13/08/2025

Tuesday’s rate cut of 0.25% by the Reserve Bank is good news to those 3 million households with mortgages across the country. Provided the banks pass along the full cut, it represents a saving of $74 per month for those with a $500,000 mortgage.

Shadow Minister for Financial Services Pat Conaghan welcomed the announcement, noting that this is the RBA’s third cut this calendar year.

“After a record thirteen consecutive increases from May 2022 to January 2025, this third reprieve will leave many mortgage-laden households with a sense of relief. It will be felt as a step in the right direction,” Mr Conaghan said.

“However, in coastal regional electorates like mine on the Mid North Coast of NSW, we have seen house prices and rents skyrocket above the national average due to the surge in sea-change migration from our major cities. Conversely, the average household income has stagnated, particularly acutely in the regions, meaning a larger percentage of weekly wages are required just to keep a roof overhead.”

Mr. Conaghan noted the RBA’s grim adjustment to the economy’s medium term growth potential and their concession that Australian living standards will improve at a much slower rate than prior decades.

“Three years of rampant inflation and record low productivity overrides any potential gains when it comes to the household budgets of Australians. While it is welcome, a decrease in mortgage rates does not signal a decrease in the overriding cost of living,” Mr Conaghan said.

“Small businesses right across the country are being hit hard, illustrated by the fact that insolvencies are now at an all-time high. For regional Australia, small to medium businesses are the backbone of our local economies. They are the ‘canary in the mine’ for our local townships. When they suffer, our communities suffer.”

“After years of disastrous policy, the cost of insurance and energy remains stubbornly high. Most businesses are unable to pass the additional hits to their bottom line onto consumers and continue to remain competitive. It’s no surprise we are seeing increasingly empty high streets in regional towns as a result.”

Additionally, the continued closures of regional bank branches has reduced access to face-to-face banking services, with some towns now without service. In May 2024, the senate inquiry into bank branch closures in regional Australia received over 600 submissions and made 8 recommendations to address this issue. However, the Government has still not responded.

“Too many local branches have closed across regional Australia, and not just the Big Four. Bendigo Bank has joined the ranks of regional deserters, leaving many frustrated and without adequate access to services,” Mr Conaghan stated.

“The Coalition is acutely aware of these negative impacts on regional Australians and will be driving policy reform that safeguards them from being left behind.”