Australian Government Debt
The latest Budget update shows that the Federal Government’s gross debt will continue to rise over the forward estimates – clocking up at an average rate from here of $11.5 billion per year on its way to $573 billion by end-June 2022 – which is $220 million per week, $31 million per day or $364 every second. While this debt remains unpaid, Australia's average interest on that debt is $16.7 billion per year – having to be paid out (serviced) at a rate of $321 million per week, $46 million per day or $530 per second.
To put this into perspective, the interest cost on our gross debt (clocking up above) could instead pay for:
- 7.3 brand new, state-of-the-art public hospitals (the nRAH in SA cost $2.3bn to build), or
- 7.6 new 1,000 MW high-efficiency, low-emissions (HELE) coal-fired power stations ($2.2bn per station) to secure our energy grid
each and every year.
That's not to say those are the federal spending priorities of Australian Conservatives – but it does show just how much Australian taxpayers forgo as we continue to rack up (and have to service) this huge gross debt. Worse still, future generations suffer for the debt run up by this generation, which is the epitome of unfairness.