Australians will begin repaying the $900 cheques from the Rudd government after the central bank raised the cash rate, the federal opposition says.

Shadow treasurer Joe Hockey said the Reserve Bank’s decision to raise the cash rate by 25 basis points to 3.25 per cent was a direct result of the federal government’s reckless spending.

He said the increase equated to an extra $1,000 in payments a year for a family who has a mortgage of $400,000.

“There goes the $900 cheque you received from the Rudd government,” Mr Hockey told reporters in Sydney.

“The coalition has been warning that the bill would come for those $900 cheques, that the bill would come for all those school buildings, the bill would come for $3 billion of pink batts.

“Today the bill is being sheeted home to every Australian family, every Australian small business.”

Mr Hockey said the increase would also put pressure on the Australian dollar, which was bad news for farmers and other exporters, as well as the tourism industry.

He again called on the government to pull back on its stimulus spending, saying it would only put further pressure on the central bank to raise rates again.

“The Rudd government was always quick to claim credit for decreases in interest rates,”

“Now it has to accept, sadly, responsibility for increases in interest rates.

“It’s reckless spending has had a direct impact on the interest rate increase ahead of market expectations today.”

AAP