“The Reserve Bank has been forced to raise interest rates on Australian families and small businesses for the 17th time under the Albanese Labor government because the Taxaholic Treasurer still can’t kick his spending addiction”, said Shadow Treasurer, Tim Wilson.
Mr Wilson’s comments come in the wake of the Reserve Bank’s decision to raise the cash rate by 25 basis points to 4.85 per cent, the fifth interest rate rise this year, the 17th since Labor came to power, and the highest level in 18 years.
In its statement, the RBA noted “Inflation is now forecast to remain elevated through much of 2027 and is not expected to reach the top of the 2-3 per cent target range until late 2027, around three quarters later than previously forecast”.
“The only sure bet on Melbourne Cup Day was Australian families would be forced to make tough choices because the Treasurer won’t kick his spending addiction”, Mr Wilson said.
“The RBA has now warned that because of the Treasurer’s spending addiction rates are going to be high and stay there”.
“Today’s rise adds around $150 a month to the average new mortgage. That family is now paying about $32,000 a year more in interest than when Labor was elected. That’s $2,700 a month ripped out of the family budget”.
“In March last year the Treasurer said we’d turned the inflation corner, but by July last year inflation started rising and so did pressure on interest rates”.
“While most developed countries have had one or two interest rate hikes this year, Australia has now had five because we have a Treasurer that can’t kick his spending and inflation addiction”.
“Australia now has higher interest rates and higher underlying inflation than every major advanced economy. This isn’t a global story. It’s a homegrown inflation problem, and its name is the Albanese government’s active inflation agenda”.
“Underlying inflation is 3.6 per cent and has been above the Reserve Bank’s target band in 15 of the 18 quarters since Labor was elected. Prices set here in Australia are up 4.5 per cent, and government spending is at its highest share of the economy since 1986-87 outside the pandemic”.
“The Reserve Bank, the IMF and business leaders have all warned that government spending is fuelling inflation. The Treasurer keeps pouring debt petrol on the inflation fire, and families and small businesses keep paying the bill at the bank and at the checkout”.
“Real wages are down 1.5 per cent under Labor. Australians are working harder, paying more at the supermarket, getting less in their trolley and going backwards”.
“The Albanese government will never pull in its belt, but it keeps telling Australians to pull in theirs. It stokes inflation, taxes inflation and spends inflation in a vicious cycle that keeps Australians poorer”.
“The Coalition has a plan to get inflation down and take pressure off interest rates. We’ve found $31 billion in savings by cutting Labor’s waste, we will put a speed limit on spending so government can’t spend faster than the economy is growing, and we will deliver our Tax Back Guarantee, so every Australian worker gets a bigger, permanent tax cut, every year”.
“The Treasurer has a choice in MYEFO. He can rein in his spending, or he can keep running the economy down the recession runway and leave families and small businesses to pay for it with even higher interest rates”.
“Australians deserve an economy where hard work gets them ahead, not one where they run faster just to stand still”.
ANNUAL INFLATION, LAST 12 MONTHS
| Annual Inflation | Headline SEP-26 | Core SEP-26 |
| Japan | 2.1% | 2.1% |
| France | 3.1% | 1.5% |
| Canada | 3.1% | 2.2% |
| Germany | 3.3% | 2.4% |
| UK | 3.5% | 2.8% |
| US | 3.7% | 2.6% |
| Italy | 4.2% | 1.6% |
| Australia | 4.3% | 3.6% |
Sources
RBA decisions, Tables F1.1 and F6 (August 2026).
ABS CPI, September 2026 and September quarter 2026.
ABS WPI, June quarter 2026.
ABS Lending Indicators, June quarter 2026 (average new loan).
Trading Economics (other countries).
Final Budget Outcome 2025-26, Appendix B, Table B1 (spending).
