Your Opinion Matters

Subject: A fairer, time-limited approach to reducing inflation pressure

A media report last year claimed over 20,000 Queensland families sold under distress in the prior 12 months. While later data shows distressed listings are not surging overall, the household stress behind those sales is very real for families like mine facing high rates and soaring living costs.

We keep being told that to fight inflation Australians must spend less. In practice, rate rises transfer cash from mortgage-holders to banks, reducing our disposable income via the ‘cash-flow channel’ of monetary policy. The RBA explains this is one way tighter policy slows demand—though the timing and size are uncertain.

Meanwhile, the banks are not struggling. Commonwealth Bank posted a record FY2025 cash profit of about $10.25 billion.

Supermarkets are also under scrutiny. The ACCC’s 2025 supermarket inquiry found our majors are among the most profitable globally and recommended reforms to improve competition and outcomes for consumers and suppliers.

A constructive alternative: If the goal is to curb demand fairly, please consider temporary compulsory saving—an automatic diversion of a small share of wages into superannuation for a defined period, with hardship exemptions. This would lower current spending while building retirement balances instead of boosting bank interest income. It’s a fiscal lever, but it directly targets consumption and supports long-term adequacy.

Practical fairness for borrowers: Encourage lenders to expand medium-term, reasonably-priced fixed-rate options (with transparent break-cost rules) so households can plan. That stability reduces the risk of forced sales and smooths policy transmission.