The Reserve Bank’s latest decision to lift the cash rate by another 0.25 percentage points will heap further financial pressure on Australian families already struggling under the weight of rising mortgage repayments, persistent inflation and higher living costs.
SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER TO THE SHADOW TREASURER SHADOW ASSISTANT MINISTER FOR THE COST OF LIVING LIBERAL SENATOR FOR WESTERN AUSTRALIA 8 May 2026 SURVEY SHOWS PERTH COSTS RISING FASTER THAN WAGES Perth families are being hit hardest by Australia’s cost-of-living crisis, with consumer prices rising 27 per cent over the past five years—the highest increase of any capital city. This analysis of CPI figures from the Australian Bureau of Statistics (ABS) was undertaken by the Federal Parliamentary Library for Senator Dean Smith. It provides a unique insight into price increases in Perth between the March 2021 and March 2026 quarters—most of which have occurred under Labor. The findings highlight the growing financial pressure on Western Australian families, with adult weekly earnings rising by just 18.5 per cent over the same period—well below the increase in household costs. Basic groceries have become significantly more expensive since 2021, with prices for eggs up 38.4 per cent, coffee, tea and cocoa up 39.4 per cent, bread up 31.2 per cent, breakfast cereals up 32.2 per cent, milk up 28.3 per cent, vegetables up 27.3 per cent, and beef and veal up 25 per cent. Perth recorded the fastest increase of any capital city for several key items, including milk, lamb and goat, food additives and condiments, cleaning and maintenance products, holiday travel and accommodation, and new dwelling purchases by owner-occupiers. The cost of dairy products rose by 27.6 per cent, while families with pets were also hit, with pet products increased by 23.7 per cent—adding further pressure to household budgets. Education costs have also climbed sharply, with secondary education up 28 per cent and tertiary education rising 29.5 per cent over the past five years. On top of these increases, Western Australians are facing an acute housing crisis, with the cost of building a new home in Perth surging by 71.9 per cent—the fastest increase of any capital city. Recent ABS data underscores the scale of the problem nationally, with the CPI rising by 4.6 per cent in the 12 months to March 2026—the highest annual inflation rate since September 2023. Housing—the largest component of the CPI—rose by 6.5 per cent over the year, while transport costs surged by 8.9 per cent, driven by sharp increases in fuel prices. In March alone, fuel prices surged by 32.8 per cent – the largest monthly increase on record – lifting petrol from 171 to 228 cents per litre and diesel by 41 per cent, while electricity costs rose 25.4 per cent over the year as rebates were withdrawn. Quotes attributable to Senator Dean Smith: “Western Australian Families are being hit hardest where it hurt the most – at the checkout, at the bowser, and in their mortgage repayments.” “Prices in Perth are up 27 per cent over five years while real wages have gone backwards, meaning families are working harder but falling behind.” “This data confirms what households already know – Labor has lost control of inflation, and Western Australians are paying the price.” “Inflation is not just a number on a page; it is the difference between putting food on the table or going without.” “This cost-of-living crisis didn’t happen by accident – it is the result of Labor’s spending problem and its failure to keep the economy under control.” ‘Out- of- control government spending has fuelled inflation, and Western Australian families are now paying the price.” “Until there is discipline in government spending and a serious plan to bring inflation down, the pressure on WA families will only get worse.” Parliamentary Library research on ABS CPI index by capital city March 2021 to March 2025 Capital City % Change March 2021-March 2026 March 2021 March 2026 Perth 27.0 79.86 101.81 Brisbane 25.9 80.56 101.42 Adelaide 25.4 81.14 101.79 Sydney 23.7 82.33 101.81 Hobart 23.3 82.61 101.86 Melbourne 22.9 82.85 101.79 Canberra 22.6 82.99 101.71 Darwin 21.9 83.07 101.27 Australia 24.2 81.87 101.70 Parliamentary Library research on ABS CPI data March 2021 to March 2026 – revealing where Perth recorded the fastest increase of any capital city and the national average in these expenditure items. ITEM Perth Increase Next Highest Capital Australia Increase New Dwelling purchase by owner- occupants 71.9 Hobart 59.5 42.4 Holiday travel and accommodation 26.1 Melbourne 25.9 23.7 Milk 28.3 Adelaide 28.1 28.2 Lamb and Goat 21.1 Adelaide 20.0 17.8 Food additives and condiments 21.6 Adelaide 21.1 21.0 Cleaning and maintenance products 23.2 Sydney 23.0 18.8 Parliamentary Library research on ABS CPI index data March 2021 to March 2026 recording Perth increases against national average by expenditure items. ITEM Perth Increase Australia Increase Bread 31.2 30.1 Breakfast cereals 32.2 30.2 Beef and veal 25.0 23.8 Pork 16.5 16.3 Fish and other seafood 19.4 18.9 Dairy and related products 27.6 27.4 Cheese 25.9 25.7 Ice cream and other dairy products 28.6 28.0 Vegetables 27.3 22.1 Eggs 38.4 43.0 Jams, honey and spreads 20.4 18.6 Food additives and condiments 21.6 21.0 Snacks and confectionary 33.0 32.5 Coffee, tea and cocoa 39.4 36.7 New dwelling purchase by owner-occupiers 71.9 41.8 Cleaning and maintenance products 23.2 18.8 Personal care products 15.6 14.7 Pets and related products 23.7 23.5 Secondary education 28.0 29.5 Tertiary education 29.5 31.6 ABS Average Weekly Earnings, Western Australia Nov 2020-Nov 2025 Year Earnings, Adult, Full time WA November 2020 1847.00 May 2021 1875.00 November 2021 1899.10 May 2022 1937.70 November 2022 1987.60 May 2023 2043.80 November 2023 2095.30 May 2024 2107.50 November 2024 2145.80 May 2025 2162.20 November 2025 2189.20
SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER TO THE SHADOW TREASURER SHADOW ASSISTANT MINISTER FOR THE COST OF LIVING LIBERAL SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 8 May 2026 RBA RATE HIKE PILES PRESSURE ON LABOR’S MORTGAGE BELT The Reserve Bank’s latest decision to lift the cash rate by another 0.25 percentage points will heap further financial pressure on Australian families already struggling under the weight of rising mortgage repayments, persistent inflation and higher living costs. With inflation remaining stubbornly high, concerns continue to grow that excessive government spending is making the Reserve Bank’s task harder and keeping interest rates higher for longer. New analysis commissioned by Senator Dean Smith from the Federal Parliamentary Library reveals that the communities most exposed to rising interest rates are overwhelmingly concentrated in Labor-held electorates across Australia’s outer suburban mortgage belt. Using the latest available ABS Census data*, the analysis identifies the 20 suburbs with the highest proportion of households paying off a mortgage. Strathnairn in the ACT recorded the highest concentration, with 85.4 per cent of households servicing a mortgage. It was followed by Denman Prospect in the ACT (78.2 per cent); Brabham-Henley Brook in Perth’s north-east (75.5 per cent); Clyde North-South in Melbourne’s outer south-east (73.8 per cent); Piara Waters-Forrestdale in Perth’s south-east (72.7 per cent); Googong in NSW (71.6 per cent); Flagstone West-New Beith south of Brisbane (70.8 per cent); Eynesbury-Exford on Melbourne’s fringe (70.2 per cent); and the ACT suburbs of Taylor (70.0 per cent), Throsby (69.4 per cent) and Moncrieff (68.8 per cent). The list also includes Marsden Park-Shanes Park in western Sydney and Fraser Rise-Plumpton in Melbourne (both 68.6 per cent); Byford in Perth’s south-east (68.4 per cent); Landsdale in Perth’s north-west (68.1 per cent); Mickleham-Yuroke north of Melbourne (67.7 per cent); Harrisdale in Perth’s south-east (67.2 per cent); Box Hill-Nelson in Sydney’s north-west (67.1 per cent); Aveley in Perth’s north-east (67.0 per cent); and Carramar in Perth’s north-west (66.0 per cent). With the exception of Flagstone West-New Beith and part of Clyde North-South, every suburb identified in the analysis sits within a federal Labor-held electorate. That includes four suburbs in the ACT seat of Fenner, three in Burt in Western Australia, two in Hasluck, and one suburb each in Bean, Holt, Eden-Monaro, Hawke, Chifley, Gorton, Cowan, Calwell, Greenway and Pearce. The Parliamentary Library analysis also examined changes in mortgage repayments between August 2021 and April 2026 — a period covering almost the entirety of the Albanese Government’s term in office. In Strathnairn, median monthly mortgage repayments increased by more than $1,000 over that period, rising from $2,191 in August 2021 to $3,253 by April 2026. Following the Reserve Bank’s latest rate rise, median repayments in Strathnairn are now estimated to have climbed to $3,289 per month — intensifying pressure on households already grappling with rising grocery prices, insurance premiums, electricity bills and fuel costs. The modelling also examined the impact of three additional 25 basis point increases. Under that scenario, median repayments in Strathnairn would rise to $3,383 per month by January 2027 — up $1,192 compared with August 2021. Because the Census benchmark dates back to August 2021, the number of households now exposed to higher repayments is likely substantially larger, reflecting strong population growth and extensive new housing construction in outer metropolitan growth corridors. At the same time, Australians are taking on larger mortgages than ever before, with ABS Lending Indicators showing the average home loan increased by $42,000 in the December quarter alone to reach $736,000. Comments attributable to Senator Dean Smith: “The Reserve Bank’s latest rate rise is another blow for Australian families already under enormous financial pressure.” “Labor’s spending problem is making it harder to get inflation under control and keeping interest rates higher for longer.” “This analysis shows the suburbs carrying the heaviest mortgage burden are overwhelmingly located in Labor-held seats across Australia’s outer suburban growth corridors.” “In suburbs like Strathnairn, mortgage repayments have now surged to an estimated $3,289 a month following the latest rate rise.” “Many families are now paying hundreds — and in some cases more than a thousand — dollars extra every month on their mortgage compared with just a few years ago.” “The Reserve Bank has repeatedly warned that inflation remains persistent and that excessive government spending is adding pressure to the economy.” “Unless the Albanese Government restores fiscal discipline and gets spending under control, Australian households face the real prospect of even higher repayments in the months ahead” ENDS
