How interest rate cut will affect retirees

Reserve Bank is set to cut official interest rates, which is bad news for retirees.

rate cuts

UPDATED: The Reserve Bank of Australia (RBA) cut official interest rates on Tuesday, which is good news for anyone with a mortgage but bad news for millions of retirees with money in the bank.

And unless the Social Services Minister revisits deeming rates, which have not been changed since 2015, it’s also bad news for pensioners.

Self-funded retirees in particular, and retirees in general, are advised to keep some money in the bank for emergencies. But if they are relying on using the interest that money earns to supplement their income, alternative investment strategies are required.

Five years ago, a bank term deposit could earn upwards of four per cent interest, now it is more likely to be earning a little over two per cent.

Inflation is well below the RBA’s target at 1.3 per cent and the official cash rate was cut by 0.25 percentage points to a record low of 1.25 per cent. Another cut is expected in August.


The Australian reports that since 1 January, the big four banks have slashed their five-year term deposit rates by between 85 and 35 basis points.

Sally Tindall, research director at financial comparison site RateCity, sees no signs of a economic turnaround.

“The people who will be hurt the most by an RBA rate cut are people like retirees and young Australians who are saving for something like a house deposit or a car or things like that,” she told The Australian.

“If term deposits and savings accounts continue to fall, people may start seeking alternatives that come with greater risk, like on the stockmarket or peer-to-peer lending.

“That’s something to be aware of as well because people need to be comfortable with where they are putting their nest egg.

“If people stopped putting money into the bank, it would force banks to be more competitive in this space. But if you look at the APRA (Australian Prudential Regulation Authority) data, their loan books are steadily increasing.”

The cut in official interest rates is likely to put extra heat on the RBA and Social Services Minister Anne Ruston to reassess deeming rates.

The purpose of deeming is to encourage social security recipients to invest their money in order to receive the best possible return.

Currently, if you are single, you are deemed to earn 1.75 per cent on investments of less than $50,200 and 3.25 per cent on any investments above that.

If you are a couple and one or both of you receive benefits, you are deemed to earn 1.75 per cent on a balance of less than $83,400 and 3.25 per cent on larger investments.

YourLifeChoices member PlanB had his say on deeming rates last month saying: “It is a bloody disgrace that we are being deemed to be getting 3.25%. You can get NOWHERE near that even with a term deposit. The highest I can get for three months is 2.38.”

Tricky says: “If the deeming rate is 3.25% and the Government assumes we can receive this amount, why don't they (the Federal Government) offer Australian bonds at the rate of 3.25% for eligible senior citizens? The LNP would much prefer to obtain a benefit by deceiving our senior citizens who contributed to making this a great country.”

Will the predicted interest rate cut affect your retirement? Do you believe deeming rates should be reviewed more regularly?

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    COMMENTS

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    Chris B T
    4th Jun 2019
    9:09am
    Yes and if they can't see themselves (Government) Reducing The Interest Rate at Least Allow the First $50000 for singles $80000 for couples Zero Interest Rate.
    This way you can have easy access of Your Money when needed.
    Odd thing though is the Pensioner Loan Scheme has a Higher Interest Rate.
    80 plus
    4th Jun 2019
    10:10am
    Lets not forget that A.L.P. Gillard raised the penalty REDUCTION for earnings above $304 A WEEK from 40% to 50% in the rush to lower income tax is it not time that this is revisited.
    TREBOR
    4th Jun 2019
    10:25am
    Well put, sir....
    Chris B T
    4th Jun 2019
    11:12am
    You wish per week, it's per fortnight.
    TREBOR
    4th Jun 2019
    11:19am
    Buggar - you're right!

    4th Jun 2019
    10:17am
    We don't have a lot of money in the bank but I'm aware that a lot of retirees have chosen safety and a low interest rate. That's their choice and one that is to be respected. I read today that, in the event that the RBA does reduce rates, the government expects banks to also reduce interest rates in line with the reduced rate. If the government wants to interfere with banks then it should also look at the deeming rates and reduce them in line with the RBA's figures. Bear in mind that the RBA's rates are targeted at borrowers and banks have always had a lower rate for investors. That's the way any business works; buy stock in at a low price and sell at a higher price. It would seem fair that the deeming rate should be lower than the RBA's rate.
    Discontented
    4th Jun 2019
    11:51am
    Wishful thinking OM
    Discontented
    4th Jun 2019
    11:51am
    Wishful thinking OM
    Anonymous
    4th Jun 2019
    3:40pm
    Yes, Discontented, I suppose it is wishful thinking. Doesn't affect me too much but does others and maybe if enough of us can get to politicians and convince them that there is a huge voting bloc out there in Greyhairland there could be a change. Remember that Bowen told those who didn't like their franking credits to be taken away should not vote for Labor and the unlosable election was lost. Could have been a contributing factor anyway.
    Rae
    5th Jun 2019
    1:32pm
    Popping the money in a safe deposit box at the bank might be a whole lot safer if losing the money is a concern.
    TREBOR
    4th Jun 2019
    10:25am
    The only decision required for the banks, either voluntarily or by compulsion, is for them to straighten up and fly right. The Labor decision to re-regulate them meant bastardry became the order of the day ... now it seems a tribunal of the people must compel them to toe the line....

    *rolls eyes* and all these years they said Castro was wrong....
    Anonymous
    4th Jun 2019
    10:36am
    Did I miss something Bob? I thought that the banks were deregulated under Hawke and nothing has been done to change that. The bastardry of which you speak is a lot worse than people really understand. History shows that there was a federal bank and each state had their own bank and when the RBA changed rates all banks were required to change their rates in line. Even then the banks played cute by immediately increasing rates the day after the RBA made their announcement but waiting until the end of the month should rates drop citing staff problems.

    There are no longer any federal or state banks to compete with the privately owned banks which are only interested in their shareholders, not the customers who invest and borrow to give the banks their profits. Is it time to regulate the banks again? I think it is as they are making decisions for themselves, not for customers and certainly not for the good of the nation. What use is the RBA if their monetary policies are ignored by those who are directly involved in implementing monetary policy?
    TREBOR
    4th Jun 2019
    10:40am
    Didn't miss anything - I said 'Labor decision' ..... both parties hold a degree of culpability here.... well said.

    Perhaps partial re-regulation is the answer. The RBA is nothing but a group of bank honchoes - it is NOT a Federal body, much as it is often mistaken for one, and it has zero power.

    Waste of time and money, but nice work if you can get it.
    Tom Tank
    4th Jun 2019
    11:45am
    I think the biggest disaster was the privatisation of the CBA. While it was owned by the taxpayer it imposed a brake on the other banks behaviour even altho' it actively competed with them.

    I cannot forgive Hawke and Keating for that.
    Tom Tank
    4th Jun 2019
    11:45am
    I think the biggest disaster was the privatisation of the CBA. While it was owned by the taxpayer it imposed a brake on the other banks behaviour even altho' it actively competed with them.

    I cannot forgive Hawke and Keating for that.
    Triss
    4th Jun 2019
    12:42pm
    Hawke didn't, and Keating doesn't bother about anybody's forgiveness, Tom Tank, as they both soared to multi-millionaire status [thanks to taxpayers] after they left parliament...giving the finger to said taxpayers ever since.
    TREBOR
    4th Jun 2019
    1:44pm
    None of them ever do, Triss - none of them ever do. They can talk endlessly about how their heart is with the people and how they entered politics out of conviction and a call to duty - but the reality is that they are crass opportunists lining up with their party to get a gig and a sweet ride for life and into the future for their descendants.

    If they were so sincere, how about they take a pay drop of 50% for starters? And tight controls over their perks?

    Never Going To Happen!!

    One of my mistakes in life was thinking you actually worked for your money - nobody told me how to cop a sweet ride. I even offended the public service by wanting to achieve too much on their behalf and streamline things... oh, well.....
    Cowboy Jim
    4th Jun 2019
    3:03pm
    Old Man - you might be right about the banks not caring for their customers only their shareholders. But look at your superannuation and check where YOUR money is invested in. You might find that you are the very shareholder benefiting from the bank's business. When I had Super I always checked where my money was riding. At 65 I took it out because that was a couple of years after the GFC - did not to go thru that again. Do not like what is happening to interest rates but if it helps to young getting into houses we should welcome that aspect of it.
    Triss
    4th Jun 2019
    3:09pm
    Trebor, I wonder, if we really tried to push the minor parties into campaigning for the next three years instead of the puny three weeks that they usually put in maybe we could make a change of government with a few policy changes that benefitted pensioners. Perhaps we could also put enough fear into Lib/Lab so they’d take a 50% drop in salary.
    TREBOR
    4th Jun 2019
    5:10pm
    Correction - at the top I meant De-regulate - not re-regulate... buggar...
    Anonymous
    4th Jun 2019
    5:14pm
    Hawke/Keating were the overseers of privatisation of banks.
    maxchugg
    5th Jun 2019
    8:00pm
    Old Man, you are right on the money here. When the government owned the RBA it was possible to do with competition that which cannot be done by legislation - keeping the banks under control.

    It is a reasonable hope that the deeming rate will now be reduced to the official interest rate. We won't hold our breath!
    maxchugg
    5th Jun 2019
    8:00pm
    Old Man, you are right on the money here. When the government owned the RBA it was possible to do with competition that which cannot be done by legislation - keeping the banks under control.

    It is a reasonable hope that the deeming rate will now be reduced to the official interest rate. We won't hold our breath!
    TREBOR
    4th Jun 2019
    10:38am
    Lowering bank interest rates is just another way of propping up an economy in tachycardia, and is (frankly) a frank admission by THIS government that its fiscal management has failed. They've been offered the ways out, here and elsewhere, many times.... but they refuse to accept them and to strap on the balls required for the job.

    Here is an apt quote:-

    "'When the oil begins to flow into Uganda, will the people of Kivu be better off? My friends, as the oil is drained away, they will grow poorer by the day. Yet these are our mines, my friends, our oil, our wealth, given to us by God to tend and enjoy in His name! These are not water wells that fill up again with the rains. What the thieves take from us today will not grow again tomorrow, or the day after."

    It's from John Le Carre`'s "The Mission Song", a work of fiction - but I believe it tells the story. We need, as a nation, to take back the asylum.
    Buggsie
    4th Jun 2019
    10:59am
    When the dust settles on the proposed LNP government's "review" of retirement incomes the least of our worries will be lower bank deposit rates and unrealistically high deeming rates. Instead we will all be wondering how to pay the new taxes imposed on our retirement incomes and restrictions imposed on withdrawals from retirement superannuation. The best advice is - "plan for the best, but prepare for the worst" when considering our retirement futures under this LNP government. Those on pensions won't be exempt either - prepare for tougher income and assets test and the inclusion of the family home as an asset.
    Rae
    4th Jun 2019
    2:52pm
    THe Government has run out of stuff to sell so you might be right.
    Waiting to retire at 70
    4th Jun 2019
    11:00am
    The only way to get anything from a bank in Australia is with a gun or as a senior exploiter, I mean senior employee.
    Ahjay
    4th Jun 2019
    1:40pm
    I remember when people used to rob banks,they now go there to be robbed.
    Misty
    5th Jun 2019
    9:02am
    Love it Ahjay.
    Beattitudes
    4th Jun 2019
    11:13am
    About time the media picked up on this!
    Every time there is an interest rate cut, a self funded retiree gets a pay cut.
    Oh well, on the upside, perhaps it will allow more to receive a pension.
    TREBOR
    4th Jun 2019
    11:22am
    I'm sure that's been mentioned here before.. but the mainstream may not have the same level of interest (sic).... they have bigger social fish to fry than the mere retiree.
    Mad as Hell
    4th Jun 2019
    11:24am
    With the tracking of accounts by the ATO how hard would it be to follow the actual interest earned instead of making up a fantasy deeming rate?
    TREBOR
    4th Jun 2019
    12:22pm
    Yes - raised that before - it really is a matter of one simple equation, but the government gains from not doing that, so they don't change it. It is possible to view exactly how much income an SFR, for example, receives in a year, and keep track of whether or not they fall into the part-pension category.

    Government loves to make hard and fast rules for its serfs, in order to retain as much control over them as possible.... too much fluidity and reality is too much for the government mind to handle.

    CPS has never been the same since I resigned over the manner of implementation of affirmative action.* Nobody with any real forward-looking ideas and pushing the envelope now.

    * Simply commanding that all will be treated equally from Day Zero would have resolved the entire issue(s) in a few years, without the never-ending disputation and discrimination that has now become entrenched and impossible to remove. Two 'generations' of new starters, 70% of public servants women, and they STILL receive preferential treatment in appointment and promotion to 'make up equality'..... Jesus God!!
    sunnyOz
    4th Jun 2019
    1:49pm
    Agree. A few years ago I got fined by ATO because I had accidentally forgotten about interest of less than $100. So they definitely have the ability to find out.
    Anonymous
    4th Jun 2019
    5:16pm
    I made an honest mistake and left out interest...wrote to them..explained that it was an honest mistake and said we were going to get an accountant to do our tax returns in future instead of husband...they accepted that and no fine. Always get an accountant now as things are too complex these days.
    travelman
    4th Jun 2019
    11:37am
    Well here we go again your investment is getting worth less and less. I can remember in 2012 I invested some money on fixed interest for one year in a credit union at 6.7% interest. Where can a person invest money for that kind of interest? No doubt high risk companies but I wouldn't be game. Under the mattress best - at least you can take it out when feeling down and run your fingers through those lovely notes to warm your heart for a moment.
    travelman
    4th Jun 2019
    11:37am
    Well here we go again your investment is getting worth less and less. I can remember in 2012 I invested some money on fixed interest for one year in a credit union at 6.7% interest. Where can a person invest money for that kind of interest? No doubt high risk companies but I wouldn't be game. Under the mattress best - at least you can take it out when feeling down and run your fingers through those lovely notes to warm your heart for a moment.
    casey
    4th Jun 2019
    11:58am
    I remember in 1990 I invested money with Pyramid Building Society. Terrific they were paying over 20%. I often wonder where my money ended up. Certainly not in my pocket. As the old saying goes. " When someone loses money, someone else makes money".
    Tricky
    4th Jun 2019
    12:09pm
    WTF CentreLink won't review deeming rates for bank deposits of 3.25% for pensioners nor part pensioners. It is highway robbery.
    sunnyOz
    4th Jun 2019
    1:51pm
    And from very first dollar. I don't know any every day accounts paying type of interest, just fees.
    KSS
    4th Jun 2019
    12:46pm
    But what about those retirees with a mortgage? They will be better off.
    TREBOR
    4th Jun 2019
    1:46pm
    Depends on where their income is derived....... lose more on invested money than is reduced on a mortgage.
    Nan Norma
    4th Jun 2019
    1:54pm
    KSS Their mortgage might go down but so will their savings.
    Cowboy Jim
    4th Jun 2019
    3:05pm
    There might be more retirees with savings than mortgages, KSS. But basically you are quite right with your assumption.
    Rae
    5th Jun 2019
    1:35pm
    Once again debtors are favoured over savers. It's easy to see that banks and bankers are running the economy. Into the ground as well.

    4th Jun 2019
    1:13pm
    I am a self funded retiree with a CSS superannuation. So any additional income for me is 32c in the dollar for any money earned ie interest from deposits etc.

    The worst we have to contend with is the poor economic capacity of the RBA. Who initiated the theory that you stimulate an economy by artificial actions like reducing interest rates. The point the RBA needs to remember is that productivity is stimulated by input. But the RBA wants to continue with endeavours for artificial stimulation of the economy. Increased productivity is likely to stimulate the economy. A significant part of that being that we produce more within our Nation and import less. Examples being exporting of coal and iron ore, no production from that action other than to import steel and other structures made from our exported products. Products exported by overseas managed and owned ore and coal.

    The most important point is that the RBA interest rate at 1.25% will be 1.25% above zero. Beyond zero we are operating in the red.

    One could suggest that when our interest rate gets 'in the red', the Banks will have to pay us to borrow money from them. And that statement emphasises the absurdity of using an artificial basis to lift your economy.

    The other lesson is that if you cannot afford a house because houses are too dear, increase the rates so that houses are cheaper and people have to save to afford them.
    TREBOR
    4th Jun 2019
    1:47pm
    Good work.....
    Anonymous
    4th Jun 2019
    3:04pm
    And now we can never raise interest rates because too many people will face foreclosure.

    And you need a University qualification to figure this out?

    Also do not forget that women make up 60% of the University attendees.. Another artificially achieved outcome. And in that regard we will NEVER re-alter the education framework so that boys get an equal outcome. We need to carve up more SYEM subjects so that girls dominate even more. And that is a similar principal that applies to articificial stimulation of the economy.

    Bad luck boys your outcomes are finished. you will make up most of the unemployed, hold all the minimal jobs and careers, receive less wages and be excluded from fatherhood by artificial insemination. You will never receive quotas and programs when women are running the show. Sorry that is already being done. Did the present elections identify one initiative for men. There were plenty for women.
    Cowboy Jim
    4th Jun 2019
    3:11pm
    That will never happen - if interest rates go below zero the banks will find a way to slug you just the same. In Europe my sister has to pay .5% for any money in the account above $100'000. Mortgages are still 1%, credit cards 10% and up. And they are being charged for taking their own money out of ATMs. There is also a charge for the debit card!
    BTW - $100K is not much money in Europe any more.
    Triss
    4th Jun 2019
    3:23pm
    i’m not arguing with you, gillham, but the pendulum will swing back, it always does. Even if my opinion irritates you you have to accept that males brought it on themselves. Look at the laws they brought in originally. Women were not allowed to own property. They were legally allowed to be bashed in their marriage. Weren’t allowed to train or be educated in certain trades and professions, women teachers and policewomen were forced to leave if they got married, and the list goes on.
    Anonymous
    4th Jun 2019
    3:36pm
    Dear Triss =The list goes on alright. My father worked 7 days a week and longer hours on the weekends. Oh yeah he had it all his own way. Never saw his kids other than at a quick meal time.

    The man bashing never stops. No doubt entrenched with you Triss. How about the World Wars and conscription.

    Pendulum swing back???? Never will. Women are that selfish and self centred that they will not ca[pitulate to their nature like men have, ie with women in charge. And we have feeble men still leading some sections like politics who capitulate in endemic fashion using terminology like 'diversity'.

    Our boys do not deserve it.
    Anonymous
    4th Jun 2019
    4:04pm
    Hey Cowboy I paid off houses when interest rates ranged generally from 7% to 13% , plus the 2 years @ 19% to 21%. Now we have achieved a 1.25% RBA rate.

    And just to add for Triss, 20years ago my son got an apprenticeship in a Electricity authority. 5 apprenticeships 3 for boys 2 for girls. 207 boy applicants, 5 girl applicants. ie boys 1 chance in 71, odds of 1:71 for girls odds at 1:2.5. Oh and that is not discrimination???

    Respect is earned not an entilement
    TREBOR
    4th Jun 2019
    5:21pm
    The future for men is the return to the swaggy thing - moving from part-time casual job to part-time casual job - while the women hold down all the permanent positions and the professions, especially the lovely supered and conditioned government and similar jobs.

    This rot has to be stopped now - at some point we must declare equality, and demand that genuine equality be the order of the day, and if you demand quotas for women in the soft spots, you must also enforce quotas for women in the hard spots and for men in the soft spots.

    No wonder the rest of the world, with its distinctly patriarchal and regulated roles for men and women, looks down on us as easy prey. When they advertise for women in heavy artillery, in roles that ostensibly involve moving a 155mm into location etc - you just KNOW the nation is not looking at a war any time soon - what happens when the tractor breaks down or is hit and the gun has to be man-handled into position?
    What about if the loading mechanism is damaged and the shells need to be loaded by hand?

    Ah -the good old days when MEN dragged 25 pounders up beside The Golden Stairs with block and tackle to bombard the Japanese on the Kokoda Trail....

    Somebody tell 'em they're dreaming.....
    gilstamp
    4th Jun 2019
    3:11pm
    You must have a lot in the bank to find even the current interest rate significant. Why not climb on to the franking credits bandwagon and embarrass Morrison into doing something about it when it blows out even more.
    DaddyKool
    4th Jun 2019
    5:22pm
    Exactly.
    I understood retirees were fearful of so called retiree tax and voted LNP to preserve franking credits. You need to get money out of bank deposit and into bank shares. Retirement 101.
    Ahjay
    4th Jun 2019
    3:19pm
    Whilst I am not qualified to give financial advice, I am able to share information that may help some who wish to help themselves. I am 78 years old, receive a part pension plus a modest income from my investments. According to Peter Thornhill, author of Motivated Money, $100,000 invested in 1980, is still worth $100,000. At the official cash rate, had you reinvested the interest you would have had $1.3 million in 2017.
    Had you invested $100,000 in the industrial index, and reinvested the dividends, over the same period, you would have $12 million. Had you drawn the dividends along the way, you would still have $1.9 million and be receiving around $90,000 P.A. in dividends.
    Share prices fluctuate, but with an index fund you will always get the market returns over the long term. Should the market drop, so will the dividends, but since the year 1900, there has never been a crash from which the dividends have started to rebound of longer than two years. Never look at the share prices, just wait for the dividends to roll in and claim the franking credits from the tax office every year.
    I have three holdings ASX Codes VGS VAS VHY.
    Vanguard Global Shares. Forward Yield 2.87% Some 1500 global companies, no franking credits.
    Vanguard Australian Shares. Forward yield 4.7% plus franking credits. comprises the top 300 Australian shares.
    VHY Vanguard High Yield. Forward yield 7.79% plus franking credits. Comprises about 50 of Australia's top dividend companies.
    This will not suit everyone, do your own research and make your own decisions.
    I am happy with mine.
    Anonymous
    4th Jun 2019
    5:18pm
    ..and you will still get people saying they want the pension and the card as they dont want to be self supporting.
    Rae
    5th Jun 2019
    1:40pm
    Me too Ahjay. I have found Vanguard exceptional and at a very low cost base.

    As you say a correction just has to be seen out. I actually find that the best time to buy.

    I think it was Buffett that said there have only been 5 really good buying times in his investment life. They were all during crashes.
    gerry
    4th Jun 2019
    4:52pm
    whilst backpacking for few years my allocated pension fund which I initially signed up with passed my account to Mercantile Mutual,then they passed it to Ing who blew 100,000 or 50% in just a few years in which time they had never notified me of the change or the fact that I had a ghost as my manager,,I complained to the ACCC and they said that I had a case but when all the bank turmoil sprung up initially they informed me that my case was weak...I later was told by a girl who worked for ACCC that they had to drop off the minnows due to lack of time and resources ..Due to a few funds losing me money ,I scraped everything up and put it into term,but now I have to jump back into shares and take the punt,,Having scraped and saved all my life I find it hard to spend but what will incite me to spend is that Fat Fred who has spent and swilled all his life will go into a retirement home for nothing and I will have to pay my way
    Ahjay
    4th Jun 2019
    4:57pm
    I have never used a fund manager, nor have I taken financial advice. They are rent seekers and every time they touch your money they skim something off the top.
    Educate yourself and you get to skim the cream for yourself.
    gerry
    4th Jun 2019
    4:52pm
    whilst backpacking for few years my allocated pension fund which I initially signed up with passed my account to Mercantile Mutual,then they passed it to Ing who blew 100,000 or 50% in just a few years in which time they had never notified me of the change or the fact that I had a ghost as my manager,,I complained to the ACCC and they said that I had a case but when all the bank turmoil sprung up initially they informed me that my case was weak...I later was told by a girl who worked for ACCC that they had to drop off the minnows due to lack of time and resources ..Due to a few funds losing me money ,I scraped everything up and put it into term,but now I have to jump back into shares and take the punt,,Having scraped and saved all my life I find it hard to spend but what will incite me to spend is that Fat Fred who has spent and swilled all his life will go into a retirement home for nothing and I will have to pay my way
    Paddington
    4th Jun 2019
    7:53pm
    Yes but you would not want to go into some of those from what I hear.
    80 plus
    5th Jun 2019
    9:52am
    in 1995 my Investment manager invested MY $90000 IN MACQUARIE BANK, 3 years latter it was worth $60000, despite my request for information from Macquarie I was told to talk to my investment manager who was no longer in the business, his wife had brought him out and was now running the new (same name) business. so choosing a big name bank is no protection. I pulled the money out and put it in a 3 year term deposit.

    4th Jun 2019
    5:08pm
    when it gets to zero i will be pulling my money..why should bank have the use of it for nothing
    Karl Marx
    4th Jun 2019
    8:35pm
    joke of the week, will the government review deeming rates, rofl
    ex PS
    6th Jun 2019
    5:10pm
    What for, we are all doing so well, the government told us so and they are totally believable. LOL.
    Chooky
    4th Jun 2019
    11:36pm
    You voted for this government so don’t complain when you are impacted by their atrocious ability to manage the economy. You can’t argue the reality of never seen before bottomed out interest rates. You can’t argue the reality of slow wage growth and increased unemployment numbers and there is NO plan of how to address this sluggish economy. This interest rate cut is the FIRST with more to come. Recession LNP style.
    Rae
    5th Jun 2019
    7:31am
    That is not apparently true. Retired Australians voted for the LNP and ALP the same as the young.

    Apparently the ethnic vote and Queensland gave the LNP the win this time.

    This may never change. Ethnic families look after their own, run their businesses and object to taxes to pay for others.

    And they make up 50% of population now.

    Perhaps the belief that the guvmint will fix everyone's problems is the problem.

    There will be a global recession because all countries just about are in the same situation and it's getting worse.

    Until they can get all those trillions out of markets and rich people's tax havens and back flowing through economies it just drags on.
    ex PS
    6th Jun 2019
    5:16pm
    Now is our chance to see how much better the Lib/Nats can handle global recession, they should do it standing on their head without spending any money. I think they will find it harder to actually do something rather than criticize those who had to perform.
    They will have to spend money and they will have to go into debt to do it, let's see how the rusted ons spin this one.
    Misty
    5th Jun 2019
    9:05am
    This govt is supposed to be wizards at managing the economy, how come we have to have a rate cut to get the economy going then?. A lot of people will now have less money to spend, how can that help the economy?.
    BillF2
    5th Jun 2019
    11:42pm
    Although I am a bit late in making a comment, the reason deeming rates have not been changed is that nobody in government is affected by them, and by keeping them artificially high, they can cheat pensioners by claiming they have a greater income than they actually have.
    At each post election speech, every prime minister (Morrison included) says they will 'govern for all Australians'. The operative word is 'all'. In the government lexicon 'all' means the government and its mates. The rest of the country is there to service the government. Additionally every new government says it is going to improve the economy, make life better, create more jobs, etc., but ever since my arrival in Australia in 1974, no government has ever achieved this. On the contrary, each new government is worse than the previous one, and the gap between the rulers and the ruled grows greater. Hence the philosophy of pensioner bashing - economically.
    Misty
    6th Jun 2019
    12:50am
    And today Telstra announced 10.000 jobs will go, seems as fast as the govt creates jobs they dissapear.

    8th Jun 2019
    10:25am
    Labor caused chaos in the housing market without even coming to power. The retreat of investment money from building and resultant higher rents are, as expected, having a serious and negative effect on associated industries and more broadly across the economy and society.
    *Loloften*
    18th Jun 2019
    5:23am
    No surprise.....retirees with minimal savings in term deposit just a simple example of how pensioners are being ignored.