$1 trillion debt bomb buried in budget papers

Original article by Adam Creighton
The Australian – Page: 1 & 6 : 21-Jun-18

Analysis of budget documents shows that the net financial liabilities of Australia’s federal, state and territory governments will top $A944bn in June 2021, which is equivalent to about $A36,000 per person. Infrastructure projects will be a major contributor to the debt blowout, with New South Wales and Victoria unveiling plans to ramp up spending on infrastructure over the next four years. Meanwhile, credit ratings agency Moody’s has expressed concern about the NSW government’s increased debt in its 2018 Budget, warning that it could affect the state’s credit profile.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, QUEENSLAND. TREASURY

Almost back in black as $126bn sliced off debt

Original article by Adam Creighton
The Australian – Page: 1 & 6 : 9-May-18

The Federal Government has forecast a modest Budget surplus of $A2.2bn in 2019-20. The Budget had previously been expected to return to surplus in 2020-21, compared with a likely deficit of $A18.2bn in 2017-18. Meanwhile, Australia’s gross debt is now slated to be $A558bn in 2027-28, compared with expectations of $A684bn in the mid-year Budget update in December. Net debt is expected to fall to 3.8 per cent of GDP by 2029, down from a peak of 18.6 per cent in 2017-18.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, STANDARD AND POOR’S FINANCIAL SERVICES LLC

Budget to fail debt test

Original article by Bevan Shields
The Sydney Morning Herald – Page: 1 : 8-May-18

Former federal treasurer Peter Costello says the Coalition government has not done enough to reduce government debt. Costello claims it would require the Budget to be in surplus for 10 years in a row for it to be paid off, and he has urged the government to cut spending by at least $A18 billion to address the debt issue. Costello supports Treasurer Scott Morrison’s goal of setting the government’s overall tax collection rate at 23.9 per cent of GDP, but says it should apply the same target to government spending.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Aussie debt surges as world pares back

Original article by David Uren
The Australian – Page: 1 & 4 : 19-Apr-18

Data from the International Monetary Fund shows that the combined debt of Australian governments is expected to peak at 41.7 per cent of GDP in 2018, compared with just 16.7 per cent in 2009. Japan and Spain are the only major advanced countries to have recorded faster growth in government debt over the last decade. However, the IMF has forecast that Australia’s gross debt will fall to 32.2 per cent over the next five years. Meanwhile, nearly $A60bn worth of Australian government debt is due to mature in the next two years, which is equivalent to 3.1 per cent of GDP.

CORPORATES
INTERNATIONAL MONETARY FUND, AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Our debt pile grows at world-record pace

Original article by David Uren
The Australian – Page: 4 : 5-Mar-18

Data from the OECD shows that Australia is one of just 10 advanced economies that have increased their debt by more than six per cent of GDP since 2012. The combined debt of Australia’s federal and state governments has increased by 12 per cent of GDP over the last five years. In contrast, New Zealand has reduced its debt by nine per cent over this period. Meanwhile, the average repayment term for Australia’s debt has risen from less than six years prior to the global financial crisis to nearly eight years.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

WA tops debt list as states binge

Original article by Richard Gluyas
The Australian – Page: 4 : 23-Feb-18

Standard & Poor’s forecasts that the combined debt of Australia’s state and territory governments will blow out by 5.1 per cent in 2018, to $A257.8bn. They will also refinance or repay some $A45.4bn worth of debt, according to the credit ratings agency. Meanwhile, the Western Australian government’s debt is expected to rise from $A45.8bn to $A56bn in 2019, which would see its debt-to-revenue ratio rise from 102 per cent to 114 per cent. The state has a credit rating of "AA-plus" with a negative outlook.

CORPORATES
STANDARD AND POOR’S FINANCIAL SERVICES LLC, WESTERN POWER CORPORATION

Budget to slice $23bn off debt pile

Original article by David Uren
The Australian – Page: 1 & 4 : 18-Dec-17

Australia’s gross debt is now expected to be about $A583bn in 2020-21, which is $A23bn lower than forecast in the Federal Government’s May 2017 Budget. Treasurer Scott Morrison says the revised debt forecast, which will be outlined in the mid-year Budget update on 18 December, will reduce the government’s annual interest bill by $A1bn. He adds that the government will now no longer be reliant on debt to finance recurrent expenditure, and borrowings will only be used for capital expenditure.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, HIGH COURT OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD, S&P GLOBAL RATINGS, AUSTRALIA. DEPT OF FINANCE

IMF jitters over ‘high’ Australian debt

Original article by David Uren
The Australian – Page: 6 : 16-Oct-17

Household debt in Australia now exceeds GDP by 23 per cent, prompting the International Monetary Fund to express concern about the nation’s vulnerability to "risk premium shocks". The combined debt of governments, business and households in Australia is now 147 per cent higher than GDP, compared with just 87 per cent a decade ago. The IMF’s data also shows that the combined debt of Group of 20 nations has risen by $US60trn to $US135trn since the global financial crisis.

CORPORATES
INTERNATIONAL MONETARY FUND, GROUP OF TWENTY (G-20)

Federal debt surges past half-a-trillion

Original article by Eryk Bagshaw
The Sydney Morning Herald – Page: 4 : 14-Jun-17

The Australian Government’s gross debt has increased by $A9bn since early May 2017, to a record $A499bn. It is poised to rise above $A500bn in coming days, and it is projected to top $A663bn in 2020. The Government’s debt ceiling was increased to $A500bn by former treasurer Joe Hockey in 2013, but it was subsequently abolished later in the same year. One Nation senator Pauline Hanson and Liberal Party senator Dean Smith have urged the reintroduction of a formal debt ceiling.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, ONE NATION PARTY, LIBERAL PARTY OF AUSTRALIA

Budget debt will finance airport, rail

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 28-Apr-17

Prime Minister Malcolm Turnbull has identified the proposed inland rail link between Melbourne and Brisbane as a "very high priority". He has also given indications that the rail link and Sydney’s second airport will be at least partially funded by the government via "good" debt. The May 2017 Budget will make a distinction between "good" and "bad" debt. Treasurer Scott Morrison notes that while the former generates income that can be used to repay debt, the latter is still needed to provide essential services.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, NBN CO LIMITED, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, SYDNEY AIRPORT – ASX SYD