+34
The latest HILDA survey highlights how rising interest rates and excessive government spending have increased housing stress for renters and mortgage holders, with nearly a quarter of private renters facing financial pressure.
The latest HILDA survey was released on Thursday, finding that cost of living has impacted Australia's wellbeing. The annual survey is the largest longitudinal study of its kind in the country, tracking around 17,000 people across 9,000 households every year since 2001.
This year's edition draws on data through to 2024 and covers everything from income and employment to relationships and mental health. Housing stress hit 23 per cent of private renters and a similar percentage of social housing tenants, while 9.6 per cent of mortgage holders were affected — the highest since 2017.
Across capital cities, 36 per cent of renters and 30 per cent of mortgage holders were spending over 30 per cent of their disposable income on housing,The potential 15-year high cash rate target is the fault of excessive government spending, according to the leader of the National Party.told News24: "The problem clearly is too much government spending, too much heat in the economy.
" A final budget update for the year, released on Monday, showed forecast tax receipts as a percentage of GDP jumped from May's forecast of 23.6 to 24.1, showing growth.steadfast that government expenditure — now more than 26 per cent of GDP — was not the main reason for the looming rate rise, instead citing global issues. For many mortgage borrowers, another 0.25 percentage point increase would add to monthly repayments that have already soared by hundreds of dollars this year.
According to analysis by financial comparison site Canstar, a standard rate rise would add roughly $107 to the monthly repayments on a $700,000 loan on an average variable rate, bringing the cumulative increase this year to $424 a month. For a mortgage of $1 million, monthly repayments would rise by $152, bringing the total monthly increase this year to $606. For Australians trying to enter the property market, another hike could shave thousands off the amount they can borrow.
A standard rate hike could cut an average wage earner's borrowing power by $11,200, according to Canstar analysis — a total fall of 9 per cent since the start of the year. Treasurer Jim Chalmers has defended the government’s economic record as Australians brace for an almost certain Reserve Bank interest rate rise, insisting inflation is not out of control.
Chalmers has been on a media blitz this morning, appearing across television and radio to spruik the government's record while acknowledging the challenge of bringing inflation down amid the cost-of-living crisis. He said the government was focused on two key priorities: bringing inflation under control while keeping unemployment low. The treasurer doesn’t want to see Australians "carry the can for decisions" on the other side of the world.
Source: AAP / Mick Tsikas The Reserve Bank’s dual mandate also reflects those priorities, he said, with the central bank required to pursue price stability while maintaining full employment. Chalmers also defended the government’s tax take as a share of GDP, arguing it remained below levels recorded under the Howard government. Asked whether he would accept higher unemployment in return for lower inflation, Chalmers said the government was "not for higher unemployment".
"I think that’s pretty clear. And what we’ve seen in recent years is that it’s possible to have low and steady unemployment at the same time as we see inflation moderate to more normal levels.
"The predicted cash rate of 4.6 per cent is set at the highest level a generation of borrowers has seen, and could exacerbate mortgage stress. That will lift the average owner-occupier variable rate to 6.49 per cent, assuming the increase is fully passed on by lenders, which they usually are, according to analysis by Canstar.
The difference since October 2011 — the last time rates were that high — is that soaring house prices have driven home loan debt up from $1.05 trillion to $2.51 trillion over the same period. The RBA is poised to take interest rates to a 15-year high as it meets ahead of announcing the cash rate target this afternoon.
It is widely predicted that interest rates will increase for the fourth time this year to 4.6 per cent, amid sticky inflation and global uncertainty.has said he doesn't want to see workers "carry the can" for economic disruption caused by the war in the Middle East. We will bring you analysis, commentary and data throughout the day, unpacking how today's decision could impact homeowners and prospective buyers. Stay with us.
Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.
HILDA Survey Australian Economy Housing Stress Interest Rates Cost Of Living
Australia Latest News, Australia Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Canberra Pet Surrenders Rise Over Cost of Living as RBA Rate Hikes LoomCanberrans are surrendering pets due to cost of living pressures, while small businesses brace for RBA rate hikes and rising costs, according to the Canberra Business Chamber.
Read more »
Groceries That Once Cost $30 Now Near $70 as Families Battle Lifestyle CreepA parent describes how everyday costs for young families have surged, with basic groceries now nearing $70, while subscriptions and takeaway quietly become budget baselines.
Read more »
The Double Burden: Rising Cost of Living and Lifestyle Creep Impact Young Families in 2026Amidst soaring grocery prices and stagnant wages, young families face severe financial strain. The article explores how dual incomes have become essential while lifestyle creep, driven by increased discretionary spending on subscriptions and comforts, exacerbates money management challenges.
Read more »
The 23-metre walk that cost a developer a $44m Mosman housing towerA legal showdown over a proposed luxury apartment complex on Sydney’s lower north shore has collapsed in court – all because developers were 23 metres off the mark.
Read more »