In a push to put debt and deficit reduction at the centre of the economic debate, the conservative free-market think tank said a 5 per cent overnight cash rate by 2030 could push Australia’s annual interest bill to $75 billion.
The yearly interest bill on more than $1 trillion in federal government debt could quadruple by the end of this decade if the Reserve Bank’s official cash rate returns to pre-GFC levels, the Institute of Public Affairs has warned.
An annual interest bill of $75 billion is triple the current forecast of $25.6 billion by 2025-26; it is more than double government spending on aged care in 2022-23; and triple spending on schools and students in the same year. “The government’s debt obligations can only be repaid by increasing taxes or reducing spending. Both measures will be disproportionately felt by the middle and working classes,” Mr Wild said.demonstrate economic leadership by showing restraint and self-control when it comes to committing to spendingFederal government gross debt is now close to $900 billion and the March budget – handed down by then-treasurer Josh Frydenberg – forecast it to climb beyond $1.16 trillion by 2025-26.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How Labor will hit its 2030 climate targetThe federal government is set to create a legally binding emissions reduction target. Its plan to deliver over the next decade hinges on two key mechanisms.
Read more »
Labor’s climate bill passes lower house as Coalition votes against enshrining 2030 targetThe bill to enshrine a 43 per cent emission reduction target in law has passed the lower house, with the legislation supported by the Greens, the majority of the crossbench and Liberal MP Bridget Archer.
Read more »
Greens will vote with Labor on climate billThe bill updates Australia&x27;s obligations under the Paris Agreement - committing to a 43 per cent emissions reduction by 2030.
Read more »
Labor’s climate bill passes lower house as Coalition votes against enshrining 2030 targetThe bill to enshrine a 43 per cent emission reduction target in law has passed the lower house, with the legislation supported by the Greens, the majority of the crossbench and Liberal MP Bridget Archer.
Read more »
Albanese government passes climate bill through the lower houseThe new bill locks in a 43 per cent emissions reduction by 2030 and net zero by 2050. 9News
Read more »