NewsBite

Australia’s looming debt crisis could be a real opportunity

Australia’s looming debt crisis could be a real opportunity

Why not use the looming fiscal crisis of the states to tackle the buck-passing by seriously reforming which tier of government is responsible for spending?

Victoria, under Premier Jacinta Allan, is being urged to overhaul its payroll tax settings. Harry Afentoglou

Michael StutchburyEditor-at-large

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Victoria’s “temporary” COVID-19 debt levy that was slapped on business payrolls and property investors nearly two years ago to get post-pandemic finances under control is a sign of a looming crisis of Australia’s fiscal federalism.

The 10-year levy is hardly temporary. And it is not reducing Victoria’s public debt, which is instead forecast to balloon to $188 billion by 2028.

Loading...

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Read More

Michael Stutchbury
Michael StutchburyEditor-at-largeMichael Stutchbury is editor-at-large. He is in his fourth decade of writing for and editing national newspapers. After nearly six years as editor of The Australian, he returned to the Financial Review as editor-in-chief (2011-2024). Email Michael at mstutchbury@afr.com

Latest In Economy

Fetching latest articles

Original URL: https://www.afr.com/policy/economy/australia-s-looming-debt-crisis-could-be-a-real-opportunity-20250206-p5la1d