Interest rates higher under Labor

05/02/12

Wayne Swan’s comments on ABC Insiders that families with mortgages are better off under the Labor Government shows that the Gillard/Swan Government is out of touch with cost of living pressures faced by Australian families.

Wayne Swan claimed:

If you look at the last two interest rate cuts somebody on a $300,000 mortgage is paying less - is paying $3,000 a year less than they were paying when we came to government.

On average, effective interest rates paid by home buyers and small businesses were lower under the Coalition from 1996 –2007 than they have been under Labor since the 2007 election.

Under the Coalition, the average standard variable mortgage rate was 24 basis points lower than Labor.

For the typical home loan of $294,800 this difference would represent a saving of over $700 a year, or $59 a month.

Under the Coalition, the average small business unsecured overdraft rate was 134 basis points lower than Labor.

For a typical small business unsecured overdraft loan of $200,000 this difference would represent a saving of $2,680 a year, or $223 a month.

These interest rates pressures are on top of significant price increases since Labor came to power. Since December 2007 electricity has increased 61%, water and sewerage has increased 58% and gas has increased 37%.

Now is not the time to add to these cost of living pressures by imposing a job-killing carbon tax that will drive up the price of everything.