October 2026 – Tim James MP column

Spring is well and truly underway in Chatswood, bringing longer days, warmer weather and hopefully plenty of activity for our local shops, cafés, restaurants and businesses.

But for many local businesses, economic conditions remain challenging. The Reserve Bank’s latest decision to lift the cash rate to 4.60 per cent means interest rates have now risen by a full percentage point this year.

For businesses, higher rates make it more expensive to borrow, invest, purchase equipment and expand. At the same time, higher mortgage repayments and household costs leave customers with less money to spend in our restaurants, shops and other local businesses.

That matters because many small businesses rely heavily on discretionary spending: the purchases people choose to make after covering essentials such as housing, groceries and utilities. When household budgets tighten, that spending is often the first to be cut.

Energy and fuel prices and international uncertainty are clearly contributing to inflation. But governments also have a responsibility to ensure their own decisions are not adding unnecessarily to demand and making the task of bringing inflation down harder.

Australia’s inflation rate remains above the G7 average and our 4.60 per cent cash rate is now among the highest across comparable developed economies.

The RBA has made clear that inflation remains too high and demand needs to be restrained. That makes discipline in government spending particularly important when households and businesses are already being asked to tighten their belts.

The best environment for business is one of stable prices, lower borrowing costs and confidence to invest. Getting inflation sustainably under control must remain a priority so local businesses and their customers can get some much-needed breathing room.

I’ll continue raising these issues in Parliament on behalf of our local business community. Please contact my office at [email protected] to share your experience or let me know how I can assist.

Tim James MP

Member for Willoughby

Shadow Minister for Fair Trading, Work Health and Safety and Building

Shadow Minister for Local Government

Shadow Minister for Veterans