| 02.05,12. 06:31 AM |
Fifty reasons banks must pass on cut
May 02, 2012
THE nation's business leaders called on the Big Four banks to 'do the right thing" and pass on the full rate cut. We give 50 reasons as to why.
1 Water: Prices have risen by 25 per cent over the past decade, with Sydney Water seeking to increase the average household bill by 31 per cent over the next four years.
2 Electricity: From July, Sydney households can expect to pay 20 per cent more for power. The average household bill will rise by $130 a year according to recommendations put to IPART.
3 Petrol: The average petrol price paid by motorists at the bowser hit 139.8c per litre last month, the highest since October 2008. The national average pump price rose to 145.8c per litre.
4 Rent: The average price of renting in Sydney hit $500 a week for the first time earlier this year.
5 Home prices: House prices in capital cities have fallen 4.5 per cent in the last year, according to RP Data.
6 Childcare: Childcare could cost an extra $50 a week, according to the Productivity Commission, if the government's reforms proceed.
7 Council rates: The average rates for residential properties in NSW were $786 this year, but more than a third of councils have applied to raise them past the 3.6 per cent ceiling.8 School fees: Fees at top private schools are about to crack the $30,000 mark for Year 12 students.
9 Dollar: The strong dollar continues to hurt traditional sectors of the economy, including manufacturing, tourism and agriculture.
10 Gas: Households look set to pay an extra $47 a year after the government set the price on it last month. The average gas bill will hike 8.3 per cent.
11 Tax on super contributions: The government has proposed doubling the tax rate on super contributions for those earning above $300,000.12 Increased tolls: Motorists can pay more than $16 to get from the northwest into the city and that will jump again once the M2 widening is complete.
13 Job cuts: Cuts in the manufacturing and building sectors have offset other gains, with unemployment barely changed in a year.
14 Rising coffee prices: The latte set could see prices jump by up to 50c a cup after heavy rains wiped out crops in Central America.
15 Increased fuel charges on flights: Qantas increased its fuel surcharge on international flights by up to $30 and domestic flights by about 5 per cent.
16 Increased recycling costs: The price of garbage collection nationally will rise by $200 million because of the carbon tax.
17 Retail spending: National retail sales posted their weakest annual growth in 27 years last year as consumers cut spending in favour of saving and paying off bills.
18 Softening economic environment: The high dollar, weakening commodity prices, cautious consumers and the European debt crisis are all creating a drag on the Australian economy.
19 Falling home sales: Sydney new home sales hit the lowest levels since 1994. The number of contracts signed for new homes was down 9.4 per cent from the month before.
20 Rising public transport costs: IPART has foreshadowed big increases in the cost of catching public transport to make up for years of modest rises.
21 Sydney Airport fees: A report has found the nation's airports earned $1.1 billion last year, with more than 70c in every dollar pure profit. Sydney was the most expensive, with the airport levying airlines $14.46 a domestic passenger.
22 Rising bank profits: The combined profit of the Big Four banks exceeded $24 billion last year, with Westpac and ANZ this week also tipped to announce bumper half-yearly results.
23 Falling consumer confidence: Pessimism has far outweighed optimism this year, with the Westpac/Melbourne Institute finding national consumer sentiment fell 5 per cent in March.
24 Falling business confidence: Dun & Bradstreet this week found a third of firms cited the lack of further interest rate cuts since December as the primary influence on diminishing of their operations.
25 Budget cuts: A lack of confidence in the government's ability to hand out a budget surplus, despite economists suggesting it was not needed to emphasise the positives surrounding the nation's economy.
26 Cut in private health insurance rebate: One of the nation's biggest health insurers, Bupa, have suggested customers could pay between 10 and 30 per cent more under proposed means-testing changes, which kick in from July.
27 Carbon tax: From household bills to petrol prices and even the price of a haircut, day-to-day services and products will cost more under the carbon tax.
28 Mining tax: Miners are tipped to boost government coffers by $10.6 billion over three years, with miners warning the tax was putting the industry's strength at risk.
29 Train fare hikes: The cost of a single adult rail ticket has risen between 20 and 40c a day, costing an average $144 extra a year.
30 Highest interest rates in the Western world: While 3.75 per cent may seem like a low cash rate, Australians still pay a high rate when compared to the near-zero rates in Japan, Europe and the US.
31 Alcohol: Taxes on alcoholic products have forced consumers to pay 15 per cent more on average for low-strength spirits.
32 Revenue-raising speed cameras: Mobile speed cameras swelled state government coffers by close to $1 million in seven months - double the revenue of the year before.33 Expensive: Sydney was recently ranked the seventh most expensive city in the world, with the cost of living in Sydney said to be more than 50 per cent higher than that of New York.
34 Struggling retail sector: Department store giant David Jones last year warned it was facing the worst retail malaise in recent history, with customers flocking to online shopping en masse.
35 First oversized cut since the GFC: With the Reserve Bank holding back from a double-dip cut for more than four years, indicators are the RBA expects the Big Four to follow suit.
36 Perception: The Australian Chamber of Commerce and Industry has warned that if retail banks don't follow in the RBA's footsteps, they stand to be perceived as above the central bank.
37 Slowing growth in China: With early indicators suggesting China's economy was slowing, economists have warned Australia's economy risks falling into a deeper slump unless Australians start reopening their purse strings.
38 Road toll hikes: The average toll for a daily commute is tipped to rise by 6 per cent per year.
39 Eating out: The cost of dining at restaurants has risen by 1.6 per cent per year, with inflation figures suggesting Australians are increasingly eating at home.
40 Manufacturing: The manufacturing industry has called on the government for assistance, with thousands of jobs in the firing line as the sector struggles to be drawn into the 21st century.
41 Fish: Small fisherman have warned industry fee hikes will likely cause the price of fish to rise over the next six months.
42 Europe: With banks suggesting funding pressures were easing in Europe, top economists say there is now no excuse for banks not to ease mortgage holders' concerns.
43 Fruit and vegetables: IBISWorld figures suggest that the cost of items such as broccoli, cauliflower, nectarines and grapes could rise 70 per cent because of flood damage.
44 Car prices: Used car prices will spike in the coming months, as supply disruptions from Japan reach Australian shores.
45 Obesity: The cost of obesity in Australia was estimated to be $37.7 billion last year. The more money in your pocket, the more likely you are to eat healthily.
46 Movies: Ticket prices continue to increase at movie theatres across the country, as the entertainment industry looks to cash in on growing demand for 3D movies.
47 CTP greenslip: Sydneysiders have been forced to pay an extra $77 a year under state government changes.
48 Flood levy: Australians earning $60,000 have been made to pay $50 a year extra, until June 30, under the government's flood levy changes from last year.
49 Apple tax: Australians inexplicably pay on average 60 per cent more for iTunes songs than their US counterparts
50 BECAUSE IT'S THE RIGHT THING TO DO