Jennie George (Throsby, Australian Labor Party, Shadow Parliamentary Secretary for Environment and Heritage) Share this | Link to this | Hansard source

A couple of months ago I undertook a sample survey in the Throsby electorate seeking responses from my constituents on the issues that were causing them financial pressure and on matters of concern to them in trying to balance their work and family responsibilities. Respondents to my survey were asked to rate 12 items. In their replies, five items stood out. These were: rising petrol prices—not of any great surprise because it is a non-discretionary item of expenditure with many of my constituents having to commute to Sydney for employment—increasing health costs, increasing interest rates, rising grocery bills and unfair new workplace laws. The survey results and the comments my constituents made clearly show that many families and individuals in my electorate—and, no doubt, across the nation—are finding it difficult to cope with the spiralling cost of living increases.

I find the Prime Minister’s comment that ‘Australian working families have never been better off’ clearly out of touch with the sentiments expressed to me by the people I represent. If you take one measure alone—mortgage stress—there has been a more than 100 per cent increase in the number of Throsby households now finding themselves in that position. In the 2001 census 1,937 households, or about 19.4 per cent of households in my electorate, were paying more than 30 per cent of their gross income on their mortgage repayments. By 2006 that had jumped to 3,896 households—32 per cent of all households in my electorate—which is a 101 per cent increase between the census of 2001 and the census of 2006. I point out that the 32 per cent proportion of households facing mortgage stress was the figure before the latest interest rate rise and the two others that came after that census data was collected. So 32 per cent is an underestimation of the real number of people who are suffering mortgage stress.

I had a look at the neighbouring electorates of Cunningham and Gilmore. Across the three electorates at least a third of all households in the Illawarra region are now technically in mortgage stress, and that number is growing. It is not surprising that housing is becoming less affordable than ever before. I see that reflected in the marked drop of first home buyers in the past decade, where the proportion has fallen from 23 per cent a decade ago to 17 per cent today. While homeowners are being increasingly priced out of the market, 43 per cent of people I represent in the Throsby electorate who are in private rental arrangements are now also paying over 30 per cent of their gross income on rent. The median property price in the area that I represent is just under $400,000, so while the price of housing is on the increase, many more young couples are being forced out of the housing market, never being able to realise their dream of owning their own home. Increasing numbers of them are in rental accommodation and that is causing them great financial stress.

Last week’s interest rate rise will add to the financial pressures that I have spoken about this evening. Do not forget that in 2004 the Prime Minister promised to ‘keep interest rates at record lows’. Since he made that promise, as we know, they have risen five times. That pledge, despite the comments that the Prime Minister made today, still features on the Liberal Party website and is something that is very much ingrained in the consciousness of people in the community. They know that the latest interest rate rise will add another $50 a month to the average $250,000 home loan, with the standard variable mortgage rate going up to 8.3 per cent. This fifth interest rate rise since the last election has added an extra $164 a month to a $250,000 mortgage and $245 to a $300,000 mortgage. Whilst the 0.5 per cent increases do not seem a lot, when you compound them over the time since the last election they are certainly adding considerably to the financial pressure facing many households in my electorate.