The Reserve Bank of Australia’s recent decision to cut interest rates by 25 basis points to 4.10 per cent has garnered significant attention, reflecting the need for economic relief amidst high costs of living. The move will provide relief to many households, but much more
needs to happen to address the broader social issues impacting the Eden-Monaro region, according to local organisations.
In Eden-Monaro, the Salvation Army social justice stocktake highlighted deep-seated challenges, with 74.1 per cent of residents identifying housing affordability and homelessness as critical issues, a sharp increase from previous data.
PHOTO: Salvation Army social justice stocktake findings – Eden-Monaro.
The Salvation Army emphasises that not having a secure home exacerbates other social issues. They state, “Addressing the housing system is fundamental to solving other justice concerns.”
While the rate cut offers some relief for homeowners, providing an estimated saving of $960 yearly on an average $500,000 mortgage, it does little for the significant portion of the population who do not own homes.
Dr Cassandra Goldie, CEO of the Australian Council of Social Service (ACOSS), stresses that mortgage relief does not mitigate the struggles of low-income individuals reliant on government support, stating, “Millions on low and fixed incomes, without mortgages, need more than rate cuts—they need direct government support.”
PHOTO: Cassandra Goldie.
Goldie continued, emphasising the need to increase support payments like JobSeeker and Youth Allowance to align with the pension rate.
The urgency for broader intervention in regions like Eden-Monaro is underscored by the climbing rates of homelessness, child poverty, and inadequate access to essential services. With 543 people experiencing homelessness and a deficit of 2900 dwellings in the region.
Mental health issues, closely tied to housing stress, have also risen, with the Salvation Army noting the interplay between mental illness and other disadvantages, arguing that “medical responses must be complemented with addressing underlying disadvantages.”
Liberal candidate for Eden-Monaro Jo van der Plaat said she has heard a number of stories of hardship from residents in the region.
“It illustrates just how dire a lack of mental health services is in Eden-Monaro when strangers approach me and confide in me about the struggles they face trying to access mental health services for their teenager,” Ms van der Plaat said.
Federal Treasurer Jim Chalmers insists the rate cut is part of broader efforts against inflation, stating, “This is the soft landing we’ve been preparing for, but more work is to be done.” However, the gap between systemic change and immediate aid needed by those struggling within Eden-Monaro remains vast.
PHOTO: Jim Chalmers.
With financial hardship reported by 55.6 per cent of Eden-Monaro respondents as an issue within the community, Mr Chalmers highlighted the progress made, he acknowledged the ongoing struggles faced by Australians, emphasising that government efforts will remain focused on “the cost of living” as a primary objective.