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Tasmanian home and business owners are assessing how to absorb the latest interest rate hike, in a state where wages are already lower than other states.
Wed 30 Sep 2026 at 2:15pmAs news of the latest interest rate hike sinks in, Tasmania ns are assessing what it means for them. Tasmania ns are being hit hard by the latest interest rate hike, with average wages lower than the mainland Australian states.
What's next? A consumer research expert is encouraging the government to look at different ways to manage inflation. Like a lot of new builds, it ended up costing the family more than they'd budgeted for. Tasmanian homeowner Alex Gill says the repeated interest rate rises are definitely having an impact.
And while on average Tasmania's wages are on average lower than other states, Ms Gill said the family have no plans to move interstate. But, if interest rates continue to climb, the family may need to consider more drastic action.
"It definitely makes us think about maybe selling in the future and not staying in the home that we're in because things are getting up there,"Tasmanian homeowner Ella Tenni is in the process of buying and selling at the moment, and says the interest rate rise does add some uncertainty into the mix. Ella Tenni, who also lives in Southern Tasmania, is weighing up what the interest rate rise will mean for her family.
"So I did have a bit of a pause, maybe feeling a bit worried about that, but in the scheme of things we're in a position that we'll be able to absorb it. ""But then I do sometimes put my head in the sand and try not to think about it. "Lower wages, big mortgages Consumer research company Canstar has looked at what impact the 0.25 per cent cash rate hike will have on monthly mortgage repayments.
For someone who took out the average new loan size for Tasmania at the start of the year of $505,000, the rate hike will translate into an increase to their minimum monthly repayments of $81.
"While plenty of households might be able to handle this kind of increase in isolation, across what has now been four cash rate hikes in 2026, that same borrower has seen their monthly repayments rise by a total of $322," Canstar's Sally Tindall said. Sally Tindall says the repeat rate rises are having a compounding impact on households across the country.
"That's not a one-off expense. That's how much extra they have to pay the bank every month for the foreseeable future.
"According to the Australian Bureau of Statistics, Tasmania's average weekly earnings are $1846.30 — compared with a national figure of $2083.70.while still cheaper than most states and territories, it has been on the rise since the pandemic. Andrew Turner says the topic of inflation and rate rises is on the minds of customers and staff alike. He said every time interest rates rise, there's a change in sentiment among his customers.
"I don't know if we get a huge drop in revenue, but it's definitely something everyone is talking about," he said. Andrew Turner says he's expecting customers to keep tightening their belt, due to the cost of living.
"Even our staff are talking about now having issues affording their homes. " "I think in north-west Tasmania, because our general mortgage rates aren't as high as some of the big cities, we're still a little bit protected. " He said he's expecting future rate rises will start to affect customer spending and his business won't be in a position to drop prices.
"All of our costs have gone through the roof as well, and now with the surcharge ban we're looking at absorbing a significant cost as a part of that. "Canstar's Sally Tindall said it was time the government considered looking at a different way to manage inflation, other than the RBA lifting interest rates. She said in the last nine months inflation reduction had stalled but at the same time borrowers and renters are paying more.
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