Support for disadvantaged needed after rate hike

The St Vincent de Paul Society in Australia today called on the Albanese Government to provide urgent support to disadvantaged Australians and those at risk of falling into poverty, after the Reserve Bank of Australia lifted its cash rate for the second time in five weeks.

National President Claire Victory said: ‘Today’s hike in the cash rate is another blow to Australians already struggling to make ends meet as the cost of daily essentials—such as housing, food and energy—skyrockets.

‘More than three million people, including one-in-six children, live in poverty in Australia. We are seeing a growing number of Australians call on our services as they struggle to cope with the cost-of-living crisis,’ Ms Victory said.

This crisis is an early challenge for the new Albanese Government, which has come to power as economic conditions worsen, food and fuel shortages push prices for essentials higher, and affordable and social housing slip further from reach.

‘We were heartened to see the new Government’s commitment to leave no Australian behind and to address these long-term trends through structural reforms, such as a National Housing and Homelessness Plan,’ Ms Victory said.

‘But urgent and immediate action is now required to ensure vulnerable Australians do not fall into the growing gap between low incomes and high inflation. We call on the Australian Government to increase JobSeeker and to ensure that vulnerable Australians are protected as efforts to combat Australia’s 20-year-record inflation and repair the Commonwealth’s budget position are implemented,’ Ms Victory said.

Increased borrowing costs will most likely be passed on from landlords to renters, who are already under enormous pressure.

‘Rental affordability has plummeted, with a recent survey showing that only five rentals across Australia were considered affordable for a single person on JobSeeker out of more than 45,000 listings,’ Ms Victory said.

‘We call on the Government to take immediate action to address the rental crisis by increasing Commonwealth Rent Assistance and reinstating the National Rental Affordability Scheme.

‘The St Vincent de Paul Society in Australia is committed to work with the new Government to support reforms to end disadvantage in Australia and avoid a ballooning of poverty and social crisis,’ Ms Victory said.