Homeowners brace for another interest rate rise
Australians are bracing for more rate pain when the Reserve Bank meets on Tuesday.
Another predicted increase has many nervous, but there is some relief on the horizon for young families.
Federal Deputy Opposition Leader Sussan Ley said small businesses and manufacturing were really struggling with the cost of living in particular.
“It is going to be another tough week for the Australian people with news of yet another interest rate rise,” Ley said.
But as parliament returns some cost of living relief will likely become law, with changes to the paid parental leave scheme before the Senate.
More Australians will access the scheme under a more flexible income test and sole parents will be entitled to 20 weeks.
Meanwhile, the debate over superannuation tax continues.
Treasurer Jim Chalmers announced balances above $3 million would have their concessional rate doubled from 2025.
Shadow Treasurer Angus Taylor called the policy flawed and said it “will have a far bigger reach than Labor is saying”.
With the proposed cap for super accounts not indexed, more workers will have super accounts above $3 million in the future as wages rise.
But that could, and likely would, be altered by future governments.
“If they want to go to the wall for people with tens of millions of dollars in superannuation, if that is their highest priority then they should say so,” Chalmers said.
