Invest
Net federal debt hits $592bn
Australia’s net federal debt came in at $592.2 billion, about 28.6 per cent of the country’s gross domestic product.
Net federal debt hits $592bn
Australia’s net federal debt came in at $592.2 billion, about 28.6 per cent of the country’s gross domestic product.
The budget deficit in the 2021 financial year is $80 million better than expected, sitting at $134.2 billion, Treasurer Josh Frydenberg said on Thursday.
The underlying cash deficit compares with a forecast deficit of $213.7 billion at the time of the 2020–21 budget, and a forecast deficit of $161.0 billion at the time of the 2021–22 budget, the Treasurer said at a press briefing.
The better-than-expected figures, he said, are a direct result of less people on welfare and more people in work.
“Since May of last year, more than 1 million new jobs have been created, and the unemployment rate has fallen below 5 per cent for the first time in a decade,” the Treasurer said.
Net debt, too, was lower than projected at $592.2 billion (28.6 per cent of GDP) at the end of 2020–21 — $25.3 billion below the sum forecast at the time of the 2021–22 budget and $111.0 billion less than what was originally estimated in the 2020–21 budget.
“This primarily reflects the decreased borrowing requirement due to the improvement in the underlying cash balance stemming from the stronger-than-expected economic recovery from the COVID-19 pandemic,” the Treasurer said.
“Despite our increased debt levels, they remain lower than many comparable nations, with the average of gross debt to GDP ratios for G7 economies being above 100 per cent of GDP.”
According to Mr Frydenberg, severe economic contraction was avoided as a result of the $311 billion in economic and health support to Australian households and businesses, which was made possible by the country’s strong fiscal position going into the pandemic.
He continued: “Having maintained our AAA credit rating from the three leading credit agencies, the government’s effective fiscal management of the pandemic has meant that Australia’s downturn in 2020 was less severe than the majority of other OECD countries.
“This has ensured the economy is in a position to bounce back rapidly from current economic headwinds.
“This puts Australia on a more sustainable fiscal trajectory, particularly as we move closer to our nationally agreed targets of 70 to 80 per cent vaccination rates, which underpin the safe reopening of our economy.”
RELATED ARTICLES
About the author
About the author
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Inflation concerns rise as Australia's CPI climbs to 3.8% in October
Australia's latest Consumer Price Index (CPI) figures have sent ripples through the economy, with headline inflation accelerating to 3.8% year-on-year in October, up from 3.6% in September. The data, ...Read more
Economy
October CPI results pose challenges for RBA’s monetary policy stance
In a surprising turn of events, the October Consumer Price Index (CPI) data has raised eyebrows among economists and market strategists, revealing stronger-than-expected inflationary pressures in ...Read more
Economy
Global deal activity declines by 6% amid economic uncertainty, reports GlobalData
In a year characterised by economic turbulence and evolving market conditions, global deal activity has witnessed a notable downturn during the first ten months of 2025. According to GlobalData, a ...Read more
Economy
Australia’s softening labour market puts another RBA cut in play — here’s what business should do now
A four-year high in unemployment has revived expectations the Reserve Bank could deliver another rate cut as soon as November. With quarterly GDP growth running at 0.6 per cent and annual growth at ...Read more
Economy
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Inflation concerns rise as Australia's CPI climbs to 3.8% in October
Australia's latest Consumer Price Index (CPI) figures have sent ripples through the economy, with headline inflation accelerating to 3.8% year-on-year in October, up from 3.6% in September. The data, ...Read more
Economy
October CPI results pose challenges for RBA’s monetary policy stance
In a surprising turn of events, the October Consumer Price Index (CPI) data has raised eyebrows among economists and market strategists, revealing stronger-than-expected inflationary pressures in ...Read more
Economy
Global deal activity declines by 6% amid economic uncertainty, reports GlobalData
In a year characterised by economic turbulence and evolving market conditions, global deal activity has witnessed a notable downturn during the first ten months of 2025. According to GlobalData, a ...Read more
Economy
Australia’s softening labour market puts another RBA cut in play — here’s what business should do now
A four-year high in unemployment has revived expectations the Reserve Bank could deliver another rate cut as soon as November. With quarterly GDP growth running at 0.6 per cent and annual growth at ...Read more
Economy
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
