Betting The House

OPINION PIECE

Next Tuesday, being the first Tuesday in November, the race that stops the nation will be beamed into homes and workspaces across Australia. But many won’t just be watching the horses. Mortgage holders will be eyeing the Reserve Bank’s Cup Day decision and praying for relief in the form of a rate cut.

In recent months, economists have poured cold water on the chances of any more rate cuts this year, pointing to a return to higher inflation and the Labor government’s failure to rein in spending. The big four banks had been saying the economic data did not stack up for a cut in November. That was, of course, until the latest unemployment figures were released.

Unemployment rose to 4.5 per cent in September, up from 4.3 per cent the month before, renewing pressure on the RBA to deliver some relief. This is a sudden and seismic jump that has stunned economists and sent the government scrambling to change the narrative.

Employment Minister Amanda Rishworth brushed off the figures, saying they weren’t worth losing sleep over.

Not worth losing sleep over! Are you serious? People, a lot of people have just lost their jobs, and the Minister for Employment is not concerned. I wonder at what point would this government start to worry!

Since Labor took office in 2022, unemployment has been creeping up, but these latest figures (and trends) are very alarming. It’s a canary in the mine, and it’s chirping loudly.

With around 80 per cent of all new jobs created since Labor came to office being in the public sector, it is clear the government has not done nearly enough to stimulate private sector employment and investment. This government simply hasn’t been managing the economy.

It has been spending, spending, spending, and betting the Aussie house on their incompetence and waste. Labor has failed to create an environment where private enterprise can thrive, where small businesses can open and survive, and where our farmers and producers are supported. And let’s not forget, it is Labor’s energy policy driving the cost of everything through the roof. A course correction is desperately needed.

We need strong economic reform, serious fiscal responsibility, a clear plan to reduce debt and a boost to build up private enterprise and household resilience.

The Coalition has announced plans to wind back Labor’s damage. At the next election, we’ll
offer a way forward to curb spending and waste, while introducing income tax cuts to keep more of what Aussies earn in their pockets.

The odds have now shortened, and it will be photo finish as to what the RBA decides next Tuesday and economists are divided as to what that decision might be. Some say the jump in unemployment justifies a rate cut, while others say government spending, and booming property prices, only further stimulated by the recently introduced First Home Buyers 5 per cent deposit scheme, will see rates kept higher for longer.

The government needs to stop betting the Aussie house. They need to take ownership of a slumping economy and rising unemployment.

To everyone across Dawson having a cheeky flutter on Tuesday, good luck. Perhaps some good fortune will come your way on the track and on the mortgage.

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