How to prepare a property portfolio for another rate rise
2 min
A property portfolio can look comfortable until several small pressures arrive together: a rate increase, a vacancy, higher insurance and an unexpected repair. The correct time to model that combination is before it occurs.
Start by recalculating every loan at 0.25, 0.50 and one percentage point above its current rate. Include principal-and-interest repayments even where a loan is temporarily interest-only, because the eventual step-up may be larger than the next RBA move.
Then calculate true net rent. Deduct management, council and water charges, strata, insurance, maintenance, land tax where applicable and a vacancy allowance. A property advertised with an attractive gross yield can produce a very different result after these costs.
Third, review the portfolio’s liquidity. An offset account can reduce interest while keeping cash accessible, but investors should obtain tax advice before moving funds between loans. The distinction between investment and private debt affects deductibility, and poorly structured redraws can create lasting complexity.
Fourth, examine refinancing risk rather than just today’s rate. A highly leveraged investor may be unable to refinance on the same terms because the new lender tests total debt at a higher assessment rate. Credit-card limits, owner-occupied debt and shaded rental income can all reduce capacity.
Fifth, rank properties by resilience. Consider net yield, vacancy risk, near-term capital expenditure, tenant demand, debt attached and the cost of selling. This is not an instruction to sell the weakest performer automatically; transaction costs and tax consequences matter. It is a way to identify where pressure would emerge first.
Investors should also review fixed-rate and interest-only expiry dates. A portfolio with several facilities resetting in the same quarter carries concentration risk even when each loan appears manageable individually.
The goal is not to predict the RBA perfectly. It is to ensure that one policy decision does not force a rushed refinancing, sale or reduction in essential maintenance. A portfolio that can absorb higher rates and temporary income interruptions gives its owner time to make deliberate decisions.
Read more: What mortgage holders should do before the next RBA decision
Portfolio checklist
Stress test: Current rate plus 0.25, 0.50 and one percentage point.
Model: Net rent after every recurring cost and vacancy.
Check: Fixed-rate expiries, interest-only expiries and loan maturity.
Preserve: An accessible emergency buffer.
Review: Insurance, land tax, strata works and major maintenance.
Seek advice: Licensed credit, financial and tax advice before restructuring.
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A new study models a potential $80.6 billion lift in Australian GDP after a decade, as national testing shows a decline in Year 10 digital literacy.
2 min
Australia trails Singapore and Malta in a new Commonwealth index, while national testing shows fewer than four in 10 Year 10 students meet the standard for digital literacy.
Australia has ranked third among 56 Commonwealth countries for youth AI readiness, with researchers estimating that artificial intelligence could lift the level of Australian GDP by $80.6 billion after a decade under their middle scenario.
The Ayre Think Tank released the index at the Commonwealth Heads of Government Meeting in Antigua and Barbuda. Australia scored 71 out of 100, behind Singapore on 77.6 and Malta on 75. The United Kingdom followed closely on 70.8, with Canada fifth on 70.2. Only 15 countries reached the study’s benchmark of 53.
What the $80.6 billion figure measures
The researchers applied International Monetary Fund estimates for broad groups of economies to Australia’s 2025 GDP. The resulting scenarios put the potential lift in Australian GDP after 10 years at between $40.9 billion and $120.3 billion, with $80.6 billion representing the midpoint.
The figures describe how much larger the economy could be at the end of the period under each scenario. They represent a change in the level of GDP in year 10.
Digital literacy falls as schools roll out AI tools
Australia scored 8.7 out of 10 for access to technology and 7.5 for digital, data, media and AI capability. Separate national testing found that 37 per cent of Year 10 students met the proficient standard for information and communications technology literacy in 2025, down from 46 per cent in 2022. About one in 10 students reported receiving substantial teaching on AI-related tasks. National assessment results
The report points to two state initiatives aimed at building those skills. Queensland began rolling out an AI education platform in state schools in 2026, while Victoria introduced free specialist training for workers looking to develop AI skills or move into related roles.
The index draws on 1,128 sources and examines the conditions facing people aged 15 to 29, including access to technology, education and pathways into work. Australia had usable data for 76 of the 102 indicators used in the rankings. The researchers found too little comparable evidence to score an eighth area covering critical judgement and people’s ability to exercise control over AI systems.
Professor C. Justin Robinson, campus principal of the University of the West Indies’ Five Islands Campus, said young people should be equipped to question and improve AI tools and supported in building alternatives suited to their needs.
The report calls for affordable access to technology, more practical education and stronger links between training, employment and entrepreneurship. It also urges governments and educators to support AI tools suited to local languages and give young people ways to challenge automated decisions.
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