PHOTO: Australia’s mortgage belt is about to be given a helping hand with tax and interest rate cuts. Mick Tsikas, file photo: Reuters

Australian households are under siege and running low on ammunition.

Spending is running ahead of income growth and all of a sudden jobs are looking less secure.

The financial fortifications of rising house prices are shaky, particularly as many are built on a powder-keg of debt — household debt is at record 190 per cent of household income and rising.

At last it appears the cavalry is on its way, cobbling together an array of monetary, macro-prudential and fiscal weapons hopefully to boost confidence and liberate spending.

Two rate cuts should deliver the average mortgage holder (with a $350,000 debt) around $100 a month soon — that’s assuming the Reserve Bank delivers and the banks pass on 80 per cent of those cuts.