Mortgages are breaking millions because of a one-sided inflation control policy.

1/3 of the population have a mortgage (per census records) and are the only direct subjects of the current inflationary control system in Australia. The majority of the population stands by not just uneffected , but progressing the problem when higher interest is being paid to them, and who contribute to the surplus-cash spending measure that the RBA assess.

Stop Interest Rate Pain on the young and poorly circumstanced minority — Demand a Fair Inflation Solution for All Australians

Australia’s current approach to controlling inflation relies on base interest rate manipulation- it is unfairly applied and ineffective !

What We’re Asking For

We are calling on Members of Parliament to recognise the failure of the current monetary policy and to commit to reforming the inflation control methods. To consider an alternative - 2nd “variable GST” system.

GST vs Interest Rates:

GST applies to 100% of Aussies not just the 30% of the population who are mortgage holders (and other businesses ventures).

It has an instant effect on the economy across the board, (the next GST quarter) in lieu of pickings within that 30 percent of the population of whom are not all on a variable loan. The current method is EXTREMELY delayed, adding to its ineffectiveness. 

With GST, all people will have the choice to buy non-essential goods and services . If there is some price change, artificially increases due to GST they can choose not to purchase, reduce demand and then reverse inflationary growth.

Mortgage holders don’t have any choice about keeping the roof over their heads as first spending. They then place the lower priced goods in the shopping trolley as a secondary need. It’s tinned food not fresh food, not health food.

GST, not interest rates , moves the pressure-point on consumption away from fundamental needs.

Our Proposal

Return interest rates to the 2% retail rate in line with earnings and mortgages and as declared by the RBA (in 2020) to remain steady.

Introduce a second GST, (leave the first one simple at 10 %) that can be made variable by each quarterly  period  under the RBA assessment tools, allowing the government to manage inflation INSTANTLY by adjusting this rate instead of relying on interest rate changes.

To have an equal “inflationary control”, ie to take surplus money out of the economy, by reducing interest rates back down from 6% to 2% the additional GST would be around 2.5% (possibly only 1% - the same as we currently pay for credit card surcharges).  Once inflation is stabilised it can be brought back to zero.

Positively,  this additional GST revenue can support communities and not have our money lost to banking profits .

This second GST, let’s call it “Inflationary Control Tax” (ICT) can be politically positively promoted and support of more urgent pressing needs for revenue such as hospital emergency development, fast train, EV charging rollout, renewables, national debt paydown, school funding and with the possibility that OTHER TAXES  can be relaxed or abandoned.

We could even  link this to climate policy, so Australia can meet its net-zero goals while easing cost-of-living pressures. That is, this ICT could be applied to carbon mitigation ( ie carbon tax on selected items being a further publicly supported movement already - it’s 2026 now not 20 10 when first proposed and opposed and the climate is equally in a catastrophic state.

Even for investors, lower interest will be good for their profits, and the additional 36% tax on that will also contribute to revenue. Then being profitable for investors will enable lower rent charges for the rental community. More improvements on these houses,  and work for builders ( while other housing developments have stalled due to interest costs - affordability issue surrounding interest !)

The typical scenario now:

A house bought with a $1M mortgage in 2020 had around $20K annual interest repayments on it. The RBA said it wouldn’t change for 3 years. Families considered this doable at the time,  their decision to buy was reasonable. By 2023 (and ever since then) interest is at 6%-6.5%. That’s $60K a year plus the principal component. That’s 40K a year MORE  AFTER TAX than they made a decision on. That’s around a 75K before tax income.  Incomes have not changed (and effectively lowered due to inflation, augmented by other cost of living increases).

Safety nets are depleted, personal savings reserves are depleted… Next step is default and housing collapse effecting everyone, (including businesses being owed money and also going broke and closing down.)

It’s insane governance by our Members of Parliament who think that is ok because none of them are personally in this position. 

What else does that do ?

We loose people from critical industries - desperate to find more income.  Roles such as nursing and teaching and emergency services can’t pay their own personal bills,  all are under serious financial (and mental) 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. Good nurses are exhausted for the extra hours they take on. Life has dissolved.

This is not just another 4 hours a week we are talking about it’s another 40 hour week again that is needed to make up the extra $70k. 

It’s not fair !!!  Not when the other 70% of the population are benefiting and bein counter-productive on the inflation.

Mothers are missing out on being mothers as a dual income is the only option., Our children don’t see their parents in critical early years ! These are critical years for the home-buyers-generation in every way. It is a cultural pandemic.

The RBA itself recognises its effectiveness is over-imagined, and that inflation is also strongly driven by external forces on our prices, not just internal supply of money. The inflation momentum after Covid stopped supply, and then results of printing money for stimulus packages, and right through to now in the US - Iraq War has caused supply driven inflation where the lucrative petroleum industry is laughing all the way to the Bahamas in the latest event. Fossil fuel, war industries and banking cartels are winning!

Using interest rates to control this WAS, AND STILL IS  WRONG!  Prices have not come down, they are just continuing upwards.

Small businesses such as cafes and restaurants were supported   by that 30% enormously…but  have now lost that revenue, and they are also at ends meet No affordable loan option to keep afloat - because high interest opposes them too.  See the shops closed and abandoned. Even the iconic David Jones and Myers are grasping for survival.

Really, it’s good to have some life about our communities, some “music in the air”. Give Australia back those little freedoms in life - the social money we need, the social times we need.

This is a great proposal and even if you don’t have mortgage stress yourself, sign this petition and let it fly.

Keep interest steady and reliable, NOT TRIPPLE over short terms. 

Why This Matters

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

It is An EXTREMELY SERIOUS SITUATION!

Call to Action

Sign this petition to demand a fairer system, a productive system,  to say  that 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. 

Send this link or email your representatives and  say you are OK with the politics of change here. 

Please pass on this change proposal to everyone you are comfortable with in your social networks and let them support it if they agree.

And if it saves you $70k a year please support this petition with a few dollars and Change.Org will send it to suitable people as a promotion.

It must change. Its only fair and it’s really good for Australia as a whole with revenue rather than lost money interest. It may even save a property crash… as affordability is somewhat repaired.