Earlier this week, for the first time in over four years, the Reserve Bank of Australia cut interest rates, offering much-needed relief to families across New South Wales. For many in south-west Sydney, including the hardworking families in my electorate of Leppington, that cut could not come soon enough. The average mortgage in Sydney now sits between $600,000 and $700,000, so the rate reduction means an extra $1,200 a year in the pockets of the average home owner. That money can go towards crushing cost-of-living pressures like groceries, bills and petrol. The median monthly mortgage repayment for households in the Leppington electorate is over $2,300, among the highest in the State. That places enormous financial strain on local families who are already feeling the pinch from rising costs in other essential areas.
That financial pressure is a direct result of the previous Liberal Government's economic mismanagement, after more than a decade of wasted opportunities and poor decision-making. As a result, New South Wales was left with skyrocketing housing prices, a rental crisis and crumbling infrastructure. The Liberals prioritised corporate handouts and privatisation over the needs of working families, driving up tolls, energy bills and essential service costs. They sold off our electricity networks, leading to record‑high power bills. They privatised WestConnex, increasing tolls year after year and making it more expensive for people to travel to work. They failed to invest in social and affordable housing, worsening the rental crisis and leaving thousands struggling to find a home. They let developers dictate planning policy, allowing unchecked growth without the necessary infrastructure, schools or healthcare services to support new and growing communities. Their legacy is one of debt, higher costs and fewer services, making life harder for people in my region of south-west Sydney.
The interest rate cut comes on top of the suite cost-of-living relief introduced by the Minns Labor Government—real steps to ease financial pressure on families. That includes $500 in energy rebates for eligible households, toll relief with the $60 weekly cap for regular commuters, and support for first home buyers through expanded stamp duty concessions. The Government has also introduced increased rental assistance and more affordable childcare options, ensuring families can keep more of their hard-earned money. Additionally, investments in public transport affordability and healthcare support measures have helped reduce day-to-day expenses for many in our community.
I welcome the immediate decision by the big four banks to pass on the rate cut in full. That is the right move and will ensure that families in Leppington and across south-west Sydney feel the benefits as soon as possible. The quicker those savings reach households, the sooner we can help arrest the cost-of-living crisis. While I understand that banks have a duty to their shareholders, they also have a responsibility to their customers and the country. After years of bank closures and the damning findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, this is the least they can do to rebuild trust in the community. However, the big banks still have plenty of work to do.
Today Westpac announced its decision to offshore 190 jobs to the Philippines, including roles from South Australia and New South Wales. That is troubling to say the least, especially after reporting a $1.7 billion quarterly profit. The Finance Sector Union has rightly criticised the move, highlighting potential risks to customer data security and negative impacts on staff and customer relations. Moreover, the closure of bank branches continues to affect communities across the State and the nation. My colleague the member for Blacktown shared his residents' frustration over the closure of the Commonwealth Bank branch in Doonside. He said that it was turning its back on the locals as well as the local business community.
In new areas in south-west Sydney, such as Leppington and Camden, where new houses and shopping centres are being built, the absence of nearby bank branches poses similar significant challenges for residents and businesses alike. Families in Leppington and across south-west Sydney are doing it tough. They have endured stubbornly high interest rates, rising rents and increasing grocery bills. The interest rate cut offers a chance to provide some much needed breathing room, and I am pleased to see the banks passing on those reductions in full. However, banks must also consider the broader impact of their operational decisions on local communities and the economy. Maintaining local jobs and accessible banking services is essential for the wellbeing and prosperity of our communities.
