Cost of Living

NAB’s revised interest rate outlook is significant because it signals a shift in how one of Australia’s major banks views the economy’s direction. Sally Auld and her team have moved away from expecting a Reserve Bank rate increase and now believe the next move is more likely to be a cut.

Australian consumer confidence has plummeted to historic lows, nearing levels not seen in 50 years, as cost-of-living pressures and inflation concerns intensify. Westpac’s latest survey reveals deep pessimism regarding family finances and property investment, which hit a record low. With interest rate hikes looming and federal budget changes weighing heavily, households are bracing for further financial challenges.

Anglicare Australia is calling for an urgent increase to JobSeeker and income support payments as new research reveals recipients cannot afford basic living expenses. The 2026 Cost of Living Index shows single people on benefits fall $251 short weekly, forcing many to skip meals and healthcare. The organization warns that the crisis is hitting the lowest-income households hardest.

Housing Minister Clare O’Neil has confirmed the Albanese government is refining its capital gains tax reforms to ensure a neutral investment landscape while protecting small businesses. Addressing housing affordability, O’Neil rejected calls to restrict negative gearing and defended the government’s low-deposit homebuyer scheme, emphasizing that interest rates remain the primary driver of property price fluctuations.