RBA Interest Rate Decision 2025: What It Means for Farming Families and Small Businesses
- Future Accounting
- 9 hours ago
- 4 min read
Written by: Chris Mulcahy
Implications of the Rate Decision for Farming Families
The RBA interest rate decision 2025 has held the cash rate steady at 3.60 per cent, offering short-term certainty while highlighting that inflation pressures remain a challenge. For farming families and small and family businesses, this decision provides a welcome pause but reinforces the importance of strong financial planning as we move into 2026.
Below, we break down what this means for different client groups and how to take proactive steps to stay confident and in control.
How the RBA interest rate decision 2025 affects farming families
The decision to hold rates gives farming families some stability, but elevated costs and rate uncertainty still require careful planning.
Working capital and cashflow
Operating finance remains expensive, so cashflow discipline is essential. Seasonal budgets should reflect conservative assumptions, and liquidity buffers remain important for managing unexpected expenses, shifts in commodity prices or variable seasonal conditions.
Machinery and capital finance
Machinery and equipment finance rates hold steady, but with no guarantee of rate cuts in early 2026, it may be worthwhile reviewing fixed-rate options. Aligning repayment schedules with production cycles continues to be a strong strategy.
Land values and succession planning
While rural land values remain firm, higher borrowing costs may reduce the pace of growth. This can support more balanced planning for succession, buy-outs and family equity distribution. Building these considerations into long-term planning now can help ensure smooth transitions in the years ahead.
Impact of the RBA interest rate decision 2025 on small and family businesses
Small and family businesses continue to experience strong cost pressures, even with the cash rate unchanged.
Operating costs remain elevated
With stubborn inflation, pressure on wages, supplies, insurance and energy continues. Business owners should revisit budgets; update pricing strategies were
needed and monitor margins closely.
Borrowing and business investment
Rate stability offers breathing room, but borrowing for growth may still require higher serviceability. Lenders remain cautious, so business owners should plan carefully and model various interest rate scenarios before committing to new debt or expansion opportunities.
Demand holding but still mixed
Domestic demand has remained stronger than expected, which is encouraging for many operators. Even so, discretionary spending remains sensitive. Careful inventory planning and strategic staffing decisions will help businesses respond to changing conditions.
What clients should do now
With the RBA interest rate decision 2025 reinforcing both stability and uncertainty, now is the perfect time to strengthen financial foundations.
Review debt strategically
Review loan structures, check your balance of fixed and variable rates, and ensure family and business debt arrangements remain fit for purpose. Restructuring or refinancing may create opportunities for improved stability and confidence.
Strengthen cash buffers
Building liquidity provides greater flexibility, protects against unexpected rate movements and supports confidence during seasonal or market fluctuations.
Plan for multiple scenarios
Prepare for steady rates, potential increases or delayed cuts. A simple base, upside and downside model helps families and businesses make calm, informed decisions.
Stage major decisions
If planning expansion, machinery upgrades or new property acquisitions, consider staging commitments while maintaining capacity to adapt to future rate changes.
How our FP process supports you through rate changes
The RBA interest rate decision 2025 flows directly into our advisory work with clients through our structured FP process.
Understanding your family and business ecosystem
We analyse how rate settings affect your entire ecosystem, including business operations, farm finances and household goals.
Mapping cashflow and risk pressures
We identify where interest costs, inflation pressure and seasonal volatility might impact your family or business.
Designing structures and strategies
We develop tailored lending, tax, investment and succession strategies that create resilience and position you for long-term success.
Ongoing monitoring and guidance
As economic conditions shift, we review and refine strategies to ensure your plan remains robust and relevant.
Preserve
We help you strengthen cashflow, build buffers and preserve family wealth through smart planning and proactive decision-making.
Protect
We safeguard your position by reducing exposure to rising costs, interest-rate risks and structural vulnerabilities across your family group.
Prosper
We set you up to take advantage of opportunities when conditions improve so your farm, business or family enterprise can thrive in the long term.
Take the next step with confidence
If you would like personalised guidance on how the RBA interest rate decision 2025 affects your farming operation, small business or family enterprise, we would love to help. Book an appointment with our team today and let’s build a clear, confident plan for 2026 and beyond.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
