The Federal Member for Maribyrnong, Bill Shorten, today welcomed the Reserve Bank’s decision to cut official interest rates by 0.25 per cent, saying it will provide further help to lessen the strain on household budgets.

“A family on a $300,000 standard variable rate mortgage are now paying more than $3,500 a year less in repayments than when the Liberals left Government” Mr Shorten said.

“This will be a welcome relief to the residents of my electorate of Maribyrnong who are presently feeling the pinch from household costs.”

Mr Shorten said this month’s rate cut, coupled with the Labor Government’s Household Assistance Package,  meant cost of living pressures for Maribyrnong families would be eased over the next few months

“The Reserve Bank has been able to take this action because the Federal Government has looked after its own budget, returning it to surplus this coming financial year.”

“This gives the Reserve Bank some extra wriggle room when deciding on whether to cut rates, and by how much,” Mr Shorten said.

“But it’s very important for the banks to pass on the cut in full, rather than keep some of it for themselves. This rate cut is supposed to go to those with mortgages, business loans and credit card debt, not onto the banks’ bottom line.”

Mr Shorten said the interest rate cut has come at the same time householders and pensioners are seeing extra payments in their bank accounts, which are calculated to more than compensate for the introduction of a carbon price.

“Around 6,100 families in my electorate have already received the Schoolkids bonus of $410 for a primary school child and $810 for a child in secondary school.

“And at the moment 23,000 pensioners are receiving extra cash upfront of $250 for singles and $380 for couples, while those on Parenting Payment and Newstart are also getting a lump sum.

Mr Shorten said that from July 1, the tax-free threshold will jump from $6,000 per annum to $18,200, providing a massive boost to lower income earners in Maribyrnong.

“All of this shows that we are listening to people’s concerns and getting on with making decisions that make a real difference to people’s lives,” Mr Shorten said.

[ENDS]

 

Suburbs in the Maribyrnong electorate include: Aberfeldie, Airport West, Albion, Avondale Heights, Brooklyn (part), Essendon, Essendon North, Essendon West, Kealba, Keilor East, Keilor Park, Maribyrnong (part), Moonee Ponds, Niddrie, St Albans (part), Sunshine, Sunshine North and Tullamarine (part).

 

Media Contact:

Jayne Edwards

Kieran Barns-Jenkins

9326 1300