30/10/2026
Staring Down a Trillion-Dollar Debt: What Happened?
In 2006, Australia reached a milestone: the Commonwealth had eliminated its net debt.
Fast forward two decades, and government borrowing tells a very different story.
2006: Commonwealth net debt eliminated.
2008–09: The Global Financial Crisis brings new borrowing and economic stimulus.
2020–21: The COVID-19 pandemic triggers unprecedented government spending.
2026: Commonwealth gross debt approaches $1 trillion, while total gross debt across Australia's federal, state and territory governments is forecast to reach $1.7 trillion in 2026–27.
Of course, each period brought its own challenges, and debt is not inherently negative. But the scale of borrowing raises important questions about spending, accountability and the long-term cost to future generations.
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