Skip to content
CharitiesAidWelfare, Political

Slowing economy highlights need to cut rates

ACOSS 2 mins read

Media release | Wednesday, 6 March 20204

Weak economic growth shows the RBA needs to cut interest rates to stem rising financial distress and job losses, ACOSS has warned. 

ACOSS CEO Cassandra Goldie said the weak 0.2 GDP growth in the December quarter showed the RBA went too far in hiking interest rates last year. 

“The living standards of people on low incomes have taken a huge hit over the past year. Real household income, employment and housing construction are in a nosedive while rents soar,” she said.

“Excessive interest rate rises last year have brought financial distress and job losses as we enter 2024 and they are likely to continue to suppress growth in jobs and incomes unless the RBA changes course.

“Since the rate increases commenced in mid 2022, unemployment has risen from 3.5 to 4.1 per cent - or 90,000 more people out of paid work. The RBA expects unemployment to reach 4.4 per cent by 2025. 

“Monetary policy decisions involve challenging trade-offs but we believe the RBA raised rates too aggressively last year and should start bringing them down when it meets later this month.

“People on low and modest incomes cannot absorb any more pressure. People with the least are being forced to make heartbreaking choices between eating and paying the rent to avoid becoming homeless.

“For people already unemployed, it is impossible to survive on $54 a day. It’s wrong for a nation as wealthy as Australia to condemn 872,000 people replying on JobSeeker to abject poverty. 

“The government should play its part in restoring growth in jobs and incomes. It should boost the our unemployment payment to the pension rate of $78 a day to ease hardship and bolster jobs growth in regions worst impacted by rising unemployment.

“It should ramp up direct investment in social housing and better regulate the private rental markets to stem the surge in homelessness and help meet flagging home construction targets. Public investment in energy efficiency upgrades for low-income homes would provide relief for people suffering during heatwaves while also strengthening jobs growth.”

Media contact:
Georgie Moore
0477 779 928

More from this category

  • Community, Political
  • 19/04/2024
  • 14:00
Flying Elephant Media contact@flyingelephant.com.au; Media contact 0413 050 922;

Australia Stands for Peace

Australia Stands for Peace Australia erupts into demonstrations and violence about an overseas war, on our Opera House steps, at the Christmas Carols in…

  • Contains:
  • CharitiesAidWelfare, Foreign Affairs Trade
  • 19/04/2024
  • 08:14
Australian Council for International Development

Australia urged to commit $50 million for war in Sudan

Media release | Friday, 19 April 2024 More than a dozen humanitarian groups have written to Foreign Minister Penny Wong urging the Australian Government to commit $50 million for lifesaving aid in war-torn Sudan. The Australian Council for International Development (ACFID),Sudanese Australian Advocacy Network (SAAN) and Micah Australia called on the federal government to find new funds for the growing humanitarian crisis. The letter – signed by groups including Oxfam Australia, Unicef Australia and Save the Children – warned Australia was falling behind its allies following combined commitments of more than €2 billion (AUD$3.3 billion) from Germany, France, the United…

  • Contains:
  • Political
  • 19/04/2024
  • 08:00
Homelessness Australia

Young renters falling behind as rent rises outstrip income support increases

Young renters who receive income support in Brisbane and Perth are doing it tougher now than they were a year ago, despite receiving income support increases in the 2023 Budget, with other young renters grappling with a rental affordability crisis that has barely improved. A new Homelessness Australia analysis cross referencing youth income support against the cost of rentals has prompted urgent calls for increases to income support to tackle the crisis. In its submission to the forthcoming Commonwealth Budget, Homelessness Australia calls for Youth Allowance and other benefits to be increased to the aged pension rate of $80 a…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.