O / T - 0.5% increase more sensible? IMO certainly not! for someone whose $400,000 mortgage balance still has say 25 years (of 30 originally) left to run.
Assuming an interest rate payable 7 months ago of 2.5%, which as of next P & I instalment date becomes 5.0%, monthly P & I instalments over that period will have increased from $1,795 to now $2,339, or $125 a week!
So, even minimum wage-earners will soon be worse off by close to $100 a week, after allowing for the recent mandatory $1+/hour minimum-wage increase, less 30% for the tax man.
