1. 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 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 bear 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 outright are shielded from these cost increases. (IE: Part of the 70% without a mortgage). So, to create a real effect the mortgage holders have to also carry the load for the non-mortgage holders. Its a tripple load of pain. 

 

Banks are making record profits in the billions, gearing their loans so that their interest rate borrowings from the monetary fund is only fractionally applied to their lending. The Loan periods are pushed further and further out and any chance of early paydown of principal is knocked out of the way for more interest ! It needs to change!!!

 

On another level, 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. Lower cost of business means lower cost of product. So inflation is stayed.

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 inflation control system. That is, a move from managing variable ineffective interest rates to managing an effective variable GST system.

 

About GST vs Interest Rates.

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

It has an instant effect on the economy across the board, in lieu of pickings of 30% amongst the community and in some of those cases it has no immediate effect for years as they have taken fixed interest terms. The RBA see an inflation report in short term periods and respond by adjusting interest rates which manipulates only part of the economy extremely negatively, and that effect is almost balanced out by the benefits to the other 70%.

With GST, people will have a choice to buy goods and services and how much if they really need things. Those people (the free) are not scrutinising pricing in reality, and for convenience they support the increased prices. “They” are the real effect on inflation!

 

Mortgage holders don’t have any choice about keeping the roof over their heads first, and then  place the lower priced goods in the shopping trolley second need. It’s tinned food not fresh food. It’s physical and mental heath pressure.

 

Move the pressure point on consumption away from the fundamental needs and get immediate and fairly shared results via the whole population with broader areas of everyday spending.

Our Proposal

Introduce a second GST, (to leave the first one simple at 10 %) that can be made variable by each Quaterly  period  under the RBA assessment — 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. The bottom line price increases due to the tax not inflation. The price is scrutinised, the base price needs to fall to meet the market, inflation is controlled.

This additional GST revenue can support communities and not be lost to corporate banking profits via five times geared bank loans. (Also where foreign bank-share ownership on that profit is adding to our own national loss of economy)

This second GST, let’s call it “Control Tax” so we don’t end up with a three letter acronym, can be politically promoted in support of more urgent pressing needs for revenue such as fast train, EV charging rollout with the possibility that OTHER TAXES  can be relaxed or abandoned. 

We could possibly link this 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 “Control Tax” applied. The possibilities are endless.

Even our own National Debts can be paid down with the extra revenue, and that interest is saved. 

The point of inflation being controlled via GST / “ Control Tax” can become very positive rather than damaging like raising interest rates radically, ineffectively as they are.

The typical scenario in case you are not following what this pain and call for help is:

 

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 income  that is required. It’s insane! For many it’s impossible! All this applied in 3 years, and remember the loans were assessed by banks at the threshold of affordability in the first instance.

 

 

We loose people from critical industries out of desperation, such as nursing and teaching,   all 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. Good nurses are exhausted for the extra hours. This is not just another 4 hours a week we are talking about it’s another 40 hour week again needed to make up the extra $70k. 

It’s not fair !!!

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 RBA recognises that inflation is strongly driven by external forces. The inflation during Covid and again right now in the US - Iraq War has caused supply driven inflation.

Using Interest rates to control this WAS, AND STILL IS ,WRONG!  Prices have not come down. 

Small businesses such as cafes and restaurants, as they were supported by that 30% middle class enormously… who are now at ends meet with no surplus income.  See the shops closed and abandoned. Even the iconic David Jones and Myers are grasping for survival.

 

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.)

 

Keep interest steady and reliable, NOT do things like TRIPPLE over short terms as has happened, and say people should be happy? A realistic risk in interest rate would be 1% change. So on an original 2% that’s a 50% risk allowance. And remember the RBA advised no changes back during COVID, all

wouls be steady and low for years to come. So do it, please. !

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 to your representatives., to say you are OK with the politics of change here. To please help !!!

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

 

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.