Tasmanian households and businesses feel impact of fourth rate rise

Tasmanian households and businesses are assessing the effect of another interest-rate increase after the Reserve Bank of Australia raised rates to 4.6%. It was the fourth rate rise of 2026 and took borrowing costs to their highest level in 15 years, according to the supplied material. Average wages in Tasmania are lower than in mainland Australian states, increasing pressure on borrowers.

Canstar calculated that a borrower with the average new Tasmanian loan of $505,000 would face an additional $81 in minimum monthly repayments. The calculation assumes a 30-year loan and a variable interest rate of 5.50%. After four increases, the same borrower would be paying $322 more a month than before the rises, Canstar said.

Tasmania’s average weekly earnings were reported at $1,846.30, compared with a national figure of $2,083.70. Homeowners said the increases were affecting family budgets. Alex Gill, who lives in southern Tasmania, said she might consider increasing her part-time hours.

Another homeowner, Ella Tenni, said the increase added uncertainty while she was buying and selling property. Businesses are also feeling pressure. Burnie café and brewery owner Andrew Turner said customers and staff were discussing housing affordability and that rising costs were limiting the ability of businesses to reduce prices.

Canstar consumer finance expert Sally Tindall said policymakers should consider approaches to inflation beyond repeated rate increases. She advised borrowers to plan and seek better loan deals, noting that some lenders had reduced variable rates.