The Reserve Bank raised interest rates for a 13th time in 18 months in November, imposing more financial pain on many Territorians in the midst of a cost of living crisis.
ACOSS recommended the Commonwealth step in and tackle inflation at its roots including working with state governments to: curb soaring rents; invest in a jobs and training offer to ease labour shortages; lift Jobseeker and related payments; and bring down the costs of energy, healthcare and medication bills, and childcare for those who can least afford it.
NTCOSS advocates for economic equality and social justice on behalf of communities affected by poverty and disadvantage. Monthly repayments for households with $500,000 mortgages have increased by about $1200 during this time and that figure increases for larger mortgages.
Our recent Cost of Living reports showed that access to private rental properties in the NT was nearly impossible for people on Job Seeker or the minimum wage.
Raising interest rates exacerbates this problem when landlords impose rent increases. Tenants in the NT have the worst rental protections in the country. We are hopeful of reforms to the NT Residential Tenancies Act being introduced.
High fuel and food prices in the NT and construction costs to build new houses that would increase supply and reduce house and rental prices are impacted by international factors not significantly eased by interest rate rises.
The position of NTCOSS and our partners, including ACOSS and the seven state and territory Councils of Social Service, is that the continued use of the blunt tool of interest rate rises is hurting people with low incomes the most.
It leads to significant job losses.
Before the November announcement, unemployment was set to rise to 4.5% by July 2025, which equals an additional 130,000 people including Territorians forced out of paid work nationally.
The RBA must pause raising rates and allow the effects of the 12 previous hikes to occur, which can take 1-2 years.