Competition under the Coalition Government had meant Australians enjoyed interest cuts much faster than under Labor, Joe Hockey, the Minister for Financial Services & Regulation, said today.
Many of the country's lenders had moved quickly to pass on today's 25 basis point rate cut.
But under Labor it took an average 51 days for the banks to deliver interest rate cuts.
"After today's rate cut an average $100,000 home loan is $60 a month cheaper than it was at Christmas," the Minister said.
" So, a family with a $100,000 mortgage is now paying $270 less in interest repayments under the Coalition than under Labor Party when they left office.
"Under a Coalition Government a family with a $100,000 home loan is saving $3200 a year - and thatÂ’s after tax money."
At their peak in March 1990, average home loan repayments under Labor were $800 a month more than today under the Coalition.
For small business overdraft rates the story is just as significant.
Under Labor in 1996 the small business overdraft rate was 11.25%. Today it is 8.45% - a saving on a $100,000 overdraft of $2800 a year
At its peak in 1990 small business was paying 20.5% for a $100,000 overdraft, or about $12,000 a year more than today.