In short:
Tasmanians are being hit hard by the latest interest rate hike, with average wages lower than the mainland Australian states.
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wages → hit → states
Local home and business owners say they're having to find ways to absorb the additional costs.
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they → say → costs
A consumer research expert is encouraging the government to look at different ways to manage inflation.
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expert → encourage → inflation
Alex Gill and her partner built their family home in Tasmania's south three years ago.
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Gill → build → south
Like a lot of new builds, it ended up costing the family more than they'd budgeted for.
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they → end → more
The latest interest rate rise will make things tighter for the family of four.
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things → make → four
Ms Gill said she may have to consider increasing her part-time working hours.
And while on average Tasmania's wages are on average lower than other states, Ms Gill said the family have no plans to move interstate.
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family → say → plans
"We're just going to have to make it work because we love being here, we love Tasmania," she said.
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she → go → Tasmania
But, if interest rates continue to climb, the family may need to consider more drastic action.
uncertain
family → continue → action
"It definitely makes us think about maybe selling in the future and not staying in the home that we're in because things are getting up there,"she said.
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things → make → that
Ella Tenni, who also lives in Southern Tasmania, is weighing up what the interest rate rise will mean for her family.
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rise → live → family
"We're in the process of selling and buying at the moment," Ms Tenni said.
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Tenni → sell → moment
"So I did have a bit of a pause, maybe feeling a bit worried about that, but in the scheme of things we're in a position that we'll be able to absorb it."
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we → have → it
She said she sometimes worries about further interest rate rises.
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she → say → rises
"But then I do sometimes put my head in the sand and try not to think about it."
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I → put → it
Lower wages, big mortgages
Consumer research company Canstar has looked at what impact the 0.25 per cent cash rate hike will have on monthly mortgage repayments.
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hike → look → repayments
For someone who took out the average new loan size for Tasmania at the start of the year of $505,000, the rate hike will translate into an increase to their minimum monthly repayments of $81.
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hike → take → 81
That's based on a 30-year loan at a variable rate of 5.50 per cent.
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That → base → cent
"While plenty of households might be able to handle this kind of increase in isolation, across what has now been four cash rate hikes in 2026, that same borrower has seen their monthly repayments rise by a total of $322," Canstar's Sally Tindall said.
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Tindall → handle → 322
That's how much extra they have to pay the bank every month for the foreseeable future."
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they → have → future
According to the Australian Bureau of Statistics, Tasmania's average weekly earnings are $1846.30 — compared with a national figure of $2083.70.
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earnings → accord → 2083.70
The latest figures from Cotality show the median property value in Hobart is over $750 000, while still cheaper than most states and territories, it has been on the rise since the pandemic.
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it → show → pandemic
Businesses bracing for belt-tightening
Andrew Turner owns a café and brewery in Burnie.
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Turner → brace → Burnie
He said every time interest rates rise, there's a change in sentiment among his customers.
"
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rates → say → customers
I don't know if we get a huge drop in revenue, but it's definitely something everyone is talking about," he said.
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he → know → revenue
"Even our staff are talking about now having issues affording their homes."
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staff → talk → homes
"I think in north-west Tasmania, because our general mortgage rates aren't as high as some of the big cities, we're still a little bit protected."
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we → think → cities
He said he's expecting future rate rises will start to affect customer spending and his business won't be in a position to drop prices.
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business → say → prices
"All of our costs have gone through the roof as well, and now with the surcharge ban we're looking at absorbing a significant cost as a part of that."
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we → go → that
Tips for mortgage holders and advice for government
Canstar's Sally Tindall said it was time the government considered looking at a different way to manage inflation, other than the RBA lifting interest rates.
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RBA → say → rates
She said in the last nine months inflation reduction had stalled but at the same time borrowers and renters are paying more.
"
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borrowers → say → more
But yet savings rates go up for people who are mortgage-free," she said.
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she → go → people
"Some people need that extra interest; there's no doubt about it.
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people → need → it
But it does seem crazy that the screws get tighter for, you know, a cohort of borrowers and renters and then the screws get a little bit looser for a different cohort."
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screws → seem → cohort
Her advice to borrowers is "take a deep breath and get planning".
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advice → take → breath
She said even though rates are on the way up, it's still a good time to find a better home loan deal.
"
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it → say → deal
We've seen a large number of lenders actually cut variable rates — yes, cut.
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number → see → rates
"In a sea of hikes, we're seeing them cut them, but only for new customers."
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them → see → customers
The Aporia
