Families are struggling, mortgages are breaking us, and renters are being squeezed harder than ever — all because of a one-sided inflation control policy.

While interest rates soar half of the population bear it, and half the population barely feel a thing. It’s time for real change: a fairer system where everyone shares the load.

Stop Unfair Interest Rate Pain — Demand a Fair Inflation Solution for All Australians

Australia’s current approach to controlling inflation — relying almost entirely on interest rate hikes — is deeply unfair and economically damaging.

Only around one-third of Australians carry a mortgage, yet they are bearing nearly all the financial burden of the Reserve Bank of Australia’s (RBA) inflation strategy. Meanwhile, wealthier Australians who own their homes outright or hold multiple investment properties are shielded from these cost increases — and, in many cases, benefiting from rising rents and capital gains. Their higher interest rates are tax deductible. Banks are making record profits in the billions in gearing their loans. It needs to change.

Lower interest rates for businesses will see the private sector able to help with project builds of new housing and many other business models get lift of.

What We’re Asking For

We are calling on the Australian Government and Members of Parliament to recognise the failure of the current monetary policy and to commit to reforming the control system so that the RBA can consider the alternative, fairer measures of inflation control, and also manage the variable GST charge instead.

GST reaches 100% of Aussies not just the 30%.

It is instant on the economy and doesn’t take years for fixed term mortgage holders to come into it’s effect. The RBA see an inflation report of the last quarter and respond by adjusting interest rates - an action that has no immediate reaction as many mortgages are locked in and still it effects only the 30% anyway.

People will have a choice to buy goods and services while mortgage holders don’t have any choice. Living in a home is a basic human need. Move the pressure point and get immediate and fairly shared results.

Our Proposal

Introduce a second GST (similar to the Canadian provincial tax) that can be variable by Quaterly period — allowing the government to manage inflation by adjusting this rate instead of relying solely on interest rate changes.

To have an equal effect of reducing interest rates back down from 5-6% to 2-3% the additional GST would be expected to be around 2.5% (possibly only 1% - the same as we currently pay for credit card surcharges) to make an immediate effect and can be brought back to zero easily once inflation is controlled. 

This additional revenue can support communities and not be lost to corporate banking profits (where foreign bank-share ownership is adding to our own national loss of economy)

This second GST can be progressively replaced by a Carbon Tax as carbon life-cycle costs become better understood, thereafter OTHER TAXES  can be relaxed or abandoned. 

We can then link this Carbon Tax to climate policy, so Australia can meet its net-zero goals while easing cost-of-living pressures. The original GST of 10% can possibly be balanced with the proportion of Carbon Tax applied. The possibilities are endless and our digital systems can now deal with this for accounting purposes. (Or just make it NOT tax deductible or transferable, added on before the standard GST, so that it actually has an effect).

Let’s not forget, as we have, that we are in a climate EMERGENCY. We’ve pushed it aside to face more immediate worries. We’ve realised we might have lost the battle, just as we realise that we will actually die one day, and so be it… But the Earth NEEDS to live on beyond a human lifetime, so do so many threatened species… And the near future threats of climate change, rising sea levels and population displacement is not over.  We are not responding in a way that an Emergency demands because we can’t see the smoke yet. Our model now of a new tax that drives carbon reduction strongly, by reducing consumption, can be observed and followed by the rest of the world. And we win over inflation control and 30 % of the population get reprieve.

Back to the point of interest rates in particular: 

A house bought with a $1M mortgage in 2020 had around $20K annual interest repayments on it. Families considered this doable - at the time!. By 2023 the annual interest repayment was $60K, plus the principal component. That’s 40K p.a MORE every year AFTER TAX. That’s around a 75K before tax earnings that are required MORE. It’s insane! For many it’s impossible!

No wonder inflation is out of control, it’s driven by industries (like construction) where workers are forced to jump-ship to other employers just to meet the higher earnings needed, or simply charge more in their rates. (The construction industry affects the economy enormously.  It was used as a stimulus in the 2008 GFC (Global Financial Crisis) with the schools projects in Australia. The money was said to circulate in the economy seven times over. It still happens -an increase in construction costs cause a chain reaction in other areas of the economy.)

 Interest rate hikes are causing inflation not controlling it.

We loose people, (people we are talking about, not some robot) from other critical industries out of desperation, such as nursing and teaching.  All are under serious stress as staff seek better pay, or take on more and more work hours, or second jobs. Good, high achieving teachers can’t afford to be teachers any more. It’s all to do with the extra 75K before tax needed to survive ! (See above). Mothers are missing out on being mothers as a dual income is now the only option., Our children don’t see their parents in those critical early years ! These are the critical years for that generation in every way.

The inflation seen during Covid and post Covid times was internationally driven and supply driven through shipping and back orders  at the time. The RBA have stated this themselves. IT WAS, AND STILL IS ,WRONG! The hiked interest rates were not the reason those prices came down again, the international pressures relaxed. Screwing our 30% of the population didn’t solve this !

Raising interest rates have killed our small businesses as they were supported by that 30% middle class enormously… who are now at ends meet as a client base, now with no surplus income at all. See the shops closed and abandoned. It’s good to have some life about our communities, some “music in the air”. Give us back those little freedoms in life - the social money we need, the social time we need.

Fix long-term mortgage rates to be more reliable and NOT TRIPPLE over short terms as recently occurred, and then come back 3 points out of thirteen raised, and say people should be happy? No!.

Low, reliable interest will allow Australians to budget and plan their financial futures with certainty when buying a house at the over inflated price that they are only to have a home not subject to a landlords whims. The banks will still make their 20K every year from every house and make their billions (averaged), just not a unsustainable 50k cost after tax going to … where ? The reserve bank revenue and the retail banks profits.

With more reliable low interest rate fixing the affordability assessments are also more reliable enabling more people (Australian Citizens that is) to afford to buy. Also, consider that banks apply an additional 3% for potential interest rate hike when assessing  affordability. (That is similar to another doubling of interest payments again if working on the 2020 period interest, a rate that was promised not to change by the RBA at the time.) Let’s remove that risk of rising interest by having it as the only means to control inflation that is caused by so many other factors, and only 30% effective on the population.

Why This Matters

This crisis affects millions of Australians — families, first-home buyers, and renters alike.

It is An EXTREMELY SERIOUS SITUATION!

We deserve an economic system that shares responsibility fairly and looks to innovative, sustainable solutions, not outdated monetary levers that punish the same group again and again.

Australia can do better — and it starts with our representatives having the courage to rethink inflation control and stand up for fairness in the face of a broken system.

Call to Action

Sign this petition to demand a fairer approach to managing inflation — one that protects working Australians, promotes climate responsibility, and ensures the economy works for everyone.  Sign this and it says you are open to a proposal like this with a new GST in place of the serious pain of interest looming over a family home.