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Reserve Bank Governor Philip Lowe has advised Australian home owners to build up buffers so they are ready for when interest rates inevitably increase.

Dr Lowe remains vague on the timing of a rise in the cash rate, which remains at a record low 0.1 per cent, but says a move later this year is "plausible."

"Interest rates will go up," he told the National Press Club on Wednesday in answer to a question from the floor.

"We need to be prepared for that. And people need to have buffers."

However, he said the positive news is that most households are paying off more than is required by the current level of interest rates, or they are keeping money in their offset accounts and redraw facilities.

"So there's a lot of capacity for many borrowers to keep their current level of spending even with higher interest rates because they've built up the buffers," he said.

Asked if people should be scrambling to get a fixed rate mortgage or sticking with a variable rate loan, Dr Lowe said it wasn't something he has thought about as he no longer has a mortgage.

"I've lived in my house for more than 25 years and over those 25 years ... I'm in the fortunate position of having paid it off," he said.

Low interest rates have meant the cost of living pressures are less for people with a mortgage.

The consumer price index showed annual inflation running at 3.5 per cent, led by a 30 per cent increase in petrol prices in the past year.

However, the Australian Bureau of Statistics' selected living cost indexes released on Wednesday shows that price pressures vary between household groups.

Employee households had the lowest annual living cost increases at 2.6 per cent because mortgage interest charges fell 7.4 per cent in the past 12 months.

"Lower mortgage interest charges continue to ease living costs for households with a mortgage," ABS head of prices statistics Michelle Marquardt said.

In contrast, age pension households had the highest annual living cost rises at 3.4 per cent due to rising food costs.

"Food makes up a higher proportion of overall expenditure for age pensioner households compared to other types of households," Ms Marquardt said.

© AAP 2022

Australian music's biggest names have paid tribute to industry pioneer Glenn Wheatley, who has died at the age of 74.

The Queenslander played bass for The Masters Apprentices in the 1960s, playing on the hits Turn Up Your Radio and Because I Love You.

He established the Wheatley Organisation in 1975 and became manager of Little River Band, later taking on the management of artists including John Farnham and Delta Goodrem.

He reportedly died after being hospitalised with COVID-19.

Wheatley famously mortgaged his house to bankroll Farnham's 1986 comeback Whispering Jack, which went on to become one of Australia's biggest-selling albums.

It would revitalise Farnham's career and the last song added to it - You're The Voice - became an Australian pop anthem.

Farnham said Wheatley was one of a kind and special to many people.

"Devastating news. Our hearts are broken, our love and thoughts to all who love Glenn, especially his family," he said in a statement on ABC radio.

Wheatley also managed Goodrem, helping launch her 2003 debut Innocent Eyes, and the singer sent her love and prayers to his family on social media.

"I will always remember him calling my family about my music after hearing a demo CD from when I was just 13 years old. What followed was many treasured memories. I am forever grateful for our time together in my early career. May he Rest In Peace," she said.

Little River Band founding member Glenn Shorrock told ABC Breakfast it was a sad day for Australian music.

"We first met back in the mid '60s, he came from Brisbane and I came from Adelaide with the Twilights. The Masters Apprentices, he played bass for them, not very well I might add," he said.

Shorrock said his old friend was passionate about Australian music and thought musicians got a raw deal, saying he negotiated some great deals for artists.

"He fought for better royalty rates and more money for struggling musicians and because of people like him, we have what they call an industry now, rather than a hobby."

But Wheatley's life was a rollercoaster of extraordinary ups and downs and he "lost everything" after investing in a nightclub just before the global financial crisis, leading him to living in his in-laws' house.

He also spent about 10 months in jail in 2007 after pleading guilty to charges of tax evasion.

Victorian Premier Daniel Andrews said it would be a difficult time for Wheatley's family, but they should be proud of his contribution to the music industry.

"What I'll offer today is obviously the sincere condolences of all Victorians particularly those who are fans of Aussie music," he said.

"To him we say thank you and to those who loved him and were close to him we say how sorry we are that he was gone too soon."

The Masters Apprentices said on Facebook that Wheatley had "left his mark forever on Australian music".

"We will miss him greatly. Our deepest sympathies to his wife Gaynor, son Tim and daughters Samantha and Kara.

"Always a Masters Apprentice! With thoughts, memories and love - Brian, Mick, Gavin, Rick, Craig and Bill."

Kate Ceberano paid tribute to Wheatley on Twitter.

"Glenn the rock'n'roller, the rascal, the dreamer, the hustler, the optimist, the manager, the visionary. Deepest condolences to the Wheatley family, Glenn the great!"

Singer Marcia Hines also posted her condolences.

"I woke to the sad news that Glenn Wheatley has passed away. My condolences to his wife Gaynor, and all of his family, during this ever so sad time," she wrote.

"May he rest in peace."

© AAP 2022

A manufacturing plant to produce rapid antigen tests will be set up in Melbourne, with the capacity to make 50 million of the sought-after test kits per year.

RATs have been in scant supply in the state, with the lack of tests for COVID-19 leading to shortages of supermarket supplies, business closures and even flight cancellations at Melbourne Airport.

The companies Lumos Diagnostics and Planet Innovation will establish a plant in Melbourne to make the tests, using money from the state's investment fund.

The Victorian government says the plant will be able to produce a million tests monthly from April, three million from July, ramping up to 50 million tests a year from October.

"We know we are going to be using these things for quite some time," the Premier Daniel Andrews told reporters on Wednesday.

He said the RATs would initially be used to meet demand within Victoria, but any surplus could be sent interstate or even exported.

Innovation Minister Jaala Pulford acknowledged the tests have been hard to come by and said they would remain in high demand in different sectors of the economy.

"Whether it's critical industries or schools and workplaces, and of course people needing confirmation of a diagnosis or confirmation of a free pass to leave home after a week of isolation," she said.

The government would not disclose how much money would be spent on the facility, citing commercial confidentiality, but said it would create 95 full-time jobs at first, and 70 ongoing jobs.

The facility will also be able to produce tests for infectious diseases, tropical diseases, chronic diseases and reproductive health.

Thousands of school students are currently being told to use several RATs per week to stop the spread of COVID-19 on campuses.

The state government is "strongly" recommending primary and secondary students and staff undergo twice-weekly rapid antigen tests at home before school, with those at specialist schools asked to test five days a week.

About 100 students and 50 staff from 121 schools across the state returned a positive rapid result on Monday as classes resumed.

Six million RATs were delivered to campuses by the start of school, enough for a fortnight, with 14 million tests to arrive over the first four weeks of the term.

© AAP 2022