Debt Consolidation Australia

... where your financial freedom begins!

Knowledgebase

Derivative:
A financial security whose value is dependent upon or derived from an underlying asset or group of assets.

Debt Consolidation Australia :: News

Share this news item!

RBA's Tug of War with Australia's Market Growth

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

As Australia's Reserve Bank grapples with economic challenges, its decisive interest rate hikes have led to a contraction in demand, achieving their intended result but with considerable impact on the private sector.

The private sector, a critical component of the nation's economy, has been particularly hard-hit. Industries such as construction and hospitality have seen a surge in insolvencies over the past two years, reflecting the broader struggle within this sector.

Job creation paints a stark picture of this downturn. Since the first quarter of 2023, only 91,433 jobs have emerged in the market-driven sectors, vastly outnumbered by the rise in the civilian population by 956,000 during the same period.

However, the larger economic narrative reveals a different trend. The overall demand across Australia remains relatively robust, primarily buoyed by the thriving non-market sector, which includes government activities and significant net overseas migration.

This divergence has been highlighted by Alex Joiner from IFM Investors, who notes that the non-market sector has generated 624,574 jobs since Q1 2023. This represents a striking 87% of the country's total job growth and is largely attributed to the expansion of initiatives like the National Disability Insurance Scheme (NDIS).

The dichotomy extends to GDP growth as well. Public sector spending is the primary driver of Australia's gross domestic product during this period, overshadowing the private sector's stagnation.

Independent economist Tarric Brooker describes the current situation as "burnout economics," where the Reserve Bank's efforts to cool the economy with elevated interest rates are met with increased public spending by government bodies.

Such significant public sector expansion is affecting productivity negatively. Australia's recent performance in labor productivity places it among the lower ranks compared to other advanced economies, raising concerns about long-term economic sustainability.

If evaluating the market sector alone, the RBA might have opted to lower interest rates; however, the overall economic picture necessitates a broader view. The non-market sector's unprecedented growth has counteracted the central bank's measures to temper demand and inflation.

The original analysis, sourced from the Australian Financial Review, fundamentally underscores the conflict between the RBA's intention to control inflation and the government's expansionary fiscal policies, which continue to bolster the non-market sector, leaving the private sector in a recessionary state.

Published:Tuesday, 21st Jan 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

ANZ's Australia Commercial Division Sees 11% Profit Growth

14 Feb 2026: Paige Estritori

ANZ Banking Group has reported an 11% increase in profit for its Australia Commercial division over the past year. This growth is attributed to robust lending activities, particularly in the agribusiness and health sectors. - read more

APRA Implements New Cap on High Debt-to-Income Home Loans

06 Feb 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting such loans to 20% of new home lending. This measure applies to both owner-occupiers and investors, with an exemption for new housing developments. - read more

RBA's October 2025 Financial Stability Review: Key Insights

06 Feb 2026: Paige Estritori

The Reserve Bank of Australia (RBA) has released its October 2025 Financial Stability Review, providing a comprehensive assessment of the nation's financial system amidst a backdrop of global uncertainties. The report underscores that while Australia's financial institutions remain robust, external factors pose significant risks that warrant vigilant monitoring. - read more

Decline in Personal Insolvencies: A Positive Sign for Australia's Economy

06 Feb 2026: Paige Estritori

The Australian Financial Security Authority (AFSA) has reported a notable decrease in personal insolvencies for October 2025, signaling a positive trend in the financial health of Australians. A total of 1,116 new personal insolvencies were recorded, down from 1,169 in September 2025 and higher than 1,009 in October 2024. - read more

Australian Mortgage Market Hits Record $2.41 Trillion

29 Jan 2026: Paige Estritori

The Australian mortgage market has reached a new milestone, with the total value of residential mortgages climbing to $2.41 trillion in November 2025. This growth is largely attributed to escalating property prices and a surge in lending activity. - read more

Click for more Finance News

Debt Consolidation Articles

Consolidating Debt: Choosing the Right Strategy for Your Financial Future

Debt consolidation is a financial strategy that has gained widespread attention, especially within the diverse economic landscape of Australia. It involves combining multiple debts into a single, more manageable loan, with the aim of simplifying the repayment process and potentially securing a lower interest rate. This approach can be particularly relevant for Australians juggling various forms of credit, from personal loans to high-interest credit card debt. - read more

The Reality of Debt Consolidation: Does it Affect Your Ability to Borrow in Future?

Welcome to a comprehensive guide aimed at dismantling the common myths that cloud the concepts of debt consolidation and debt reduction. Amidst widespread financial stress, debt consolidation emerges as a popular strategy for Australians in search of relief from their monetary burdens. - read more

The Importance of Emergency Funds in Your Monthly Budget

When it comes to managing your finances, planning for the unexpected is a crucial part of staying on top of your budget. An emergency fund serves as your financial safety net, poised to offer support when unforeseen expenses arise. These funds are specifically set aside to cover unexpected costs, like medical emergencies, car repairs, or urgent home maintenance issues. - read more

How to Track Monthly Expenses for Better Debt Management

In the realm of financial wellness, tracking your monthly expenses is a crucial step towards effective debt management. Many Australians grapple with the challenges of keeping their debts under control, particularly in a dynamic economic environment. - read more

The Ultimate Guide to Achieving Financial Freedom Through Debt Restructuring

Financial stability is a common aspiration, yet many Australians find themselves weighed down by the burden of debt. Whether it’s due to loans, credit cards, or unexpected financial emergencies, the struggle to stay afloat is a reality for countless individuals striving to achieve their dreams of a secure, debt-free future. - read more

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.