Dave Sharma (NSW, Liberal Party, Shadow Assistant Minister for Citizenship and Multicultural Affairs) Share this | Hansard source

Around the world last week, central banks met in Japan, in the eurozone, in Canada, in the United States and in the United Kingdom, and central banks in each of those countries, faced with the same global economic headwinds and turmoil that Australia faces, all decided to keep rates on hold, because they have the room and the inflationary space to wait. But here the Reserve Bank met and decided it couldn't wait. It raised interest rates by 25 basis points, the second rise in as many months, because Australia is an outlier here.

The interest rate rise of last week means an average mortgage holder is paying $106 more in interest per month. If you add that to the rate rise the month before, you're looking at $210 a month in additional interest repayments. If you add up all of the 14 rate rises that have taken place under the Albanese Labor government, the average mortgage holder today is paying $27,000 more a year in interest.

Jim Chalmers, the Treasurer, had the audacity to say last week that Australia is better placed than most to deal with this global economic turmoil we are facing. That is not true. We are worse placed than most. Look at our inflation figures: 3.8 per cent annualised. If you look at other advanced economies, in the US it is 2.4 per cent, in the UK three per cent, in the eurozone 1.9 per cent and in Canada 1.8 per cent. As the Reserve Bank governor said last week, inflation was already out of control in Australia. So what this government has done is that it has shredded our economic shock absorbers. Inflation was too high. Government spending, as again the Treasurer has conceded, was too high. Government debt is approaching $1 trillion. What this means is that the government does not have the fiscal or monetary space to respond to this crisis, and our fuel stocks are too low. That is why this crisis is going to hit Australia harder than most other developed nations.