Australia is entering a more uncertain global environment with around $1 trillion in Commonwealth debt and the cost of servicing that debt rising. Recently, Australia’s 10-year government bond rate climbed to around 5.4 per cent, levels not seen in 15 years.
Shadow Assistant Treasurer and Shadow Minister for Financial Services Kevin Hogan, a former bond trader, said rising borrowing costs should concern every taxpayer.
“Rising bond rates are a problem because they make it more expensive for the Government to borrow. The last time they were at these levels the Commonwealth’s debt level was around $200 billion – now it’s $1 trillion.”
“When Howard and Costello were in power, Australia had no net government debt.”
“Today, under Albanese and Chalmers, Commonwealth gross debt is $1 trillion so taxpayers are paying more than $30 billion a year in interest. That will only go up as bond rates rise.”
“Every extra dollar spent servicing that debt is a dollar that cannot be used to help families, protect jobs or strengthen the economy when times get tough.”
“Howard and Costello understood that you build Australia’s financial defences in the good times, before you need them.”
“Labor has had four years to strengthen those defences. Instead, debt is higher, borrowing costs are rising, and Australia has less room to respond to the next global shock.”
“We cannot control when the next global crisis hits, but we can control how prepared Australia is for it.”
