Received

Details: Written by Grant Broadcasters; Category: Received; Published: 07 September 2022; Hits: 98

Thousands of childcare workers have staged a nationwide shutdown, urging the federal government to increase their pay and job security.

An estimated 70,000 children and families were impacted by the industrial action as up to 1000 centres partially or completely closed on Wednesday.

Workers rallied in all capital cities asking for a reason to stay in a sector grappling with staff shortages, which a union official described as a crisis.

The United Workers Union called on the federal government to give a solid commitment on when wages will rise and when they will implement major reforms.

"They're exhausted, they're sick of being undervalued, and they're calling for change," the union's early education director Helen Gibbons told AAP of workers.

"They need to know what this government's plan is to fix their wages and give them a reason to stay in the sector, but also to reform the sector."

The minimum wage for a childcare support worker begins at $21.85 an hour, which is $830 a week before tax.

Early Childhood Education Minister Anne Aly said she was committed to developing solutions to recruit and retain workers.

"Fees for centre-based care have risen by 41 per cent in the last eight years alone, we have a plan to deliver a stronger early childhood education workforce with a secure pipeline of workers," Dr Aly said.

The federal government has also flagged a review into pricing across the system.

In Melbourne's Federation Square thousands of workers donned blue tops and chanted as they marched through the city on Wednesday.

Educator Kiki Fairbrass said she was sick of being thanked with food and cupcakes for working during breaks, leading working bees on weekends, staying back late and cleaning centres.

"We're fighting for recognition because as educators we need qualifications to work in this industry" Ms Fairbrass told AAP.

Another worker told AAP she was forced to buy her own PPE at the height of the pandemic because it was not supplied by her employer.

Parent Daniel Scoullar attended the rally with his three-year-old son Elliot as a gesture of gratitude.

"Early childhood educators are part of the glue that holds everything together, enables people to go to work, supports kids' development and just doesn't get that level of respect," he told AAP.

"It's not treated like the skilled profession that it is."

Caterina Mamone has been an early childhood educator for 14 years and says she's sick of being described as a babysitter.

"We are basically raising other people's children from zero to five," she said.

"I shouldn't have to think, 'what happens if I leave the sector and find a job with better stability?'"

Leading operators Goodstart Early Learning and G8 Education expressed support for workers staging the shutdown.

Thrive Early Learning owns eight centres around Sydney and backs the industrial action but questioned how wages can rise without costs being passed on to families.

"I fully support educators as they use the only tactic they feel works to get governments to listen. But I wonder how the increased pay will be funded?" founder Carl Elassal said.

Goodstart Early Learning expected workers from about 200 of its centres to attend rallies.

"We know that a lot of parents have opted to pick up their children early so that more of the educators can attend their rallies. A lot of parents are very supportive," Goodstart's head of advocacy John Cherry told AAP.

Details: Written by Grant Broadcasters; Category: Received; Published: 06 September 2022; Hits: 73

The central bank has hiked interest rates for the fifth month in a row and signalled more rises are on the way.

The 50 basis point lift brings the official cash rate to 2.35 per cent - the highest level since 2015.

The Reserve Bank of Australia started lifting interest rates in May in response to fast-rising inflation.

RBA Governor Philip Lowe said the board was committed to returning inflation to between its target band of two to three per cent.

"It is seeking to do this while keeping the economy on an even keel," he said.

"The board expects to increase interest rates further over the months ahead, but it is not on a pre-set path."

Dr Lowe said inflation was expected to peak later this year and then decline back towards the target range.

But he also said household spending remained an "important source of uncertainty".

Treasurer Jim Chalmers said the cash rate decision would "tighten the screws on family budgets".

"The markets had anticipated it and homeowners were expecting it as well but the fact that we knew it was coming doesn't make it any easier for people," he said in parliament.

He said governments do not interfere with the independent decisions of the Reserve Bank.

"It is our job to do what we responsibly can to help Australians deal with these pressures in the near term, and to build a much more resilient economy into the future," Dr Chalmers said.

Provided banks pass on rate hikes to customers, the interest rate increase will lead to higher repayment for variable rate mortgage holders.

For a typical mortgage holder with a $750,000 debt and 25 years to go on their loan, RateCity data shows another 0.5 percentage point hike will see them pay $922 more a month than they were in May before rates started rising.

PropTrack economist Eleanor Creagh said the aggressive hiking cycle has triggered a fall in house prices, with house prices now sitting 2.7 per cent below their March peak.

But outside the housing market, the impact of rate rises is yet to show.

Consumer confidence is down, but the labour market remains tight, unemployment is still exceptionally low, spending shows no signs of a slowdown and business conditions remain healthy.

"These conditions have allowed the RBA to continue raising the target cash rate toward their estimates of the neutral rate, while monitoring the evolution of household spending as interest rates rise - a key source of ongoing uncertainty," Ms Creagh said.

She said Tuesday's rate hike would push property prices down even further because borrowing would get even more expensive.

Rising interest rates and soaring inflation are taking their toll on Australians' mental health, with frontline services ranking cost of living and personal debt as the biggest risk to suicide rates.

Prime Minister Anthony Albanese acknowledged the financial pressure Australians were under and said there would be some measures to ease cost of living pressures in the October budget.

"We will soon be preparing our first budget and we need to address the cost of living issues Australians are facing while being mindful of the trillion dollars of debt we have inherited," he said during a party room meeting.

Opposition Leader Peter Dutton called on the government to come up with a plan to ease living pressures, especially high energy bills.

"The prime minister promised on 100 occasions before the last election that the power prices of families would come down by $275. Now, he's not mentioned that figure one day since," Mr Dutton told reporters on Tuesday.

More rate rises are likely, with Westpac economists expecting to see the cash rate lift to 3.10 per cent by the end of the year before peaking at 3.35 per cent in February

The bank then expects rates to start dropping in 2024.

Details: Written by Grant Broadcasters; Category: Received; Published: 06 September 2022; Hits: 72

The central bank has hiked rates for the fifth month in a row.

The 50 basis point lift brings the official cash rate to 2.35 per cent - the highest level since 2015.

The Reserve Bank of Australia started lifting interest rates in May in response to fast-rising inflation.

Another rate rise was broadly expected, with core inflation sitting at 4.9 per cent - well above the target band of two to three per cent.

The central bank's aim is to lift rates high and fast enough to dampen demand and cool inflation, but not so aggressively as to trigger a recession and job losses.