MEDIA RELEASE
29 September 2026
Australian households and small businesses have been dealt another blow after the Reserve Bank today increased the cash rate by 25 basis points to 4.60 per cent, its highest level in almost 15 years.
Federal Member for Fisher Andrew Wallace MP said the latest increase would pile even more pressure onto families already struggling with mortgages, groceries, power, petrol and insurance. And small business owners were facing a “double whammy”.
“This is the 16th interest rate rise since Labor came to office and the fourth increase this year alone,” Mr Wallace said.
“For a family with an average new mortgage, today’s increase means finding around another $120 every month, or $1,400 a year.
“That is real money being ripped out of household budgets at a time when families are already cutting back everywhere they can.
“Young Australians trying to buy their first home have also just watched the goalposts move even further away.”
The Reserve Bank today said inflation remained elevated and that further monetary tightening could be required if inflationary pressures persist.
Mr Wallace said Australians had been forced to tighten their belts while Commonwealth Government spending continued at historically high levels.
“Families are being told to spend less because inflation is too high, yet the Albanese Government continues to spend at levels we have not seen outside the pandemic in 40 years,” Mr Wallace said.
“The Government’s own Final Budget Outcome shows spending at 26.9 per cent of GDP.
“The Reserve Bank is trying to take demand out of the economy with higher interest rates. The Albanese Government should be doing its part by getting its own spending under control.
“Instead, Australians are paying the price through higher mortgage repayments and a cost of living that continues to hurt.”
Mr Wallace said the latest rate rise came after Australians had already endured a significant deterioration in household living standards and persistent increases across essential expenses.
“Labor told Australians inflation was coming under control. Today, the cash rate is at 4.60 per cent, and the Reserve Bank is warning that it stands ready to go further if necessary.
“The Government can point to international events and external pressures, and those factors clearly matter, but it cannot pretend domestic economic policy and government spending are irrelevant.
“Life isn’t easy under Albanese. Australians are working harder, paying more and watching more of their household income disappear into the mortgage.”
Mr Wallace said the Coalition had a clear plan to take pressure off inflation, restore living standards and help Australians get ahead.
“Fixing the cost-of-living crisis starts with fixing the economy, and that means getting government spending under control,” Mr Wallace said.
“A Coalition Government will restore discipline to the Budget, lower taxes, back small and family businesses, and establish a Future Generations Fund to help pay down debt and invest in nation-building infrastructure.
“This week we also released our plan for cheaper power, focused on affordable and reliable energy, while our housing plan will link migration to the number of homes Australia can actually build.
“And when global oil prices surge, our Fuel Price Shield will automatically cut fuel excise by around 27 cents a litre, saving motorists around $15 on a typical tank.
“Responsible spending. Lower taxes. Cheaper power. More homes. Relief at the bowser.
“That is how we take pressure off Australian families and start rebuilding the living standards that have gone backwards under Labor.”
[ENDS]
Media Contact: Brendan West – 0402 556 646 – Brendan.west@aph.gov.au
