Skyscraper City Forum banner
1 - 20 of 42 Posts

·
skyscraper connoisseur
Joined
·
6,206 Posts
Discussion Starter · #1 ·
THE Federal Government would be debt-free by tomorrow, Treasurer Peter Costello said today.

Mr Costello said the Commonwealth bankcard would finally be in the black as of April 21, which he dubbed "debt-free day".

"As best as we can tell, tomorrow, the Commonwealth of Australia will eliminate its net debt," he told the Committee for Economic Development of Australia.

"It is the day we pay off the mortgage.

"From tomorrow, our government will no longer be a net borrower.

"In fact, from tomorrow we will start to save – to save for some of the big challenges of the future."

Mr Costello said the Government had inherited a debt of $96 billion when it came to office in 1996.

The treasurer said the Government had made $46.1bln from asset sales since 1996, with all proceeds going towards retiring debt.

Mr Costello said this was providing a direct benefit to taxpayers.

While some debt held by government instrumentalities will remain for the time being, Mr Costello said the retirement of "all government net debt" meant net interest payments next year of $300 million.

"This means every year, year after year, the taxpayer is saving billions in debt servicing costs."

Despite being in the black, Mr Costello warned against a spending spree.

"Let me disappoint some people and say that now is not the time down and make whoopee," he said.

"If we lose focus and discipline we could easily go backwards."

The Government has forecast an underlying cash surplus of $11.5bln for 2005/06.

http://finance.news.com.au/story/0,10166,18869965-31037,00.html
Can i just say that this is an extraudinary achievement! We are the envy of the world and no other country is debt free! In the end, since we don't have to pay off debt next week, we have more money to spend on other things. Furthermore, this debt free credit rate would be so useful when we have economic slowdown, so debt won't drag us any further.

:dance: :nocrook: :nocrook: :nocrook: :nocrook:
 

·
selling my body since 88'
Joined
·
2,241 Posts
Isn't it Commonwealth Debt free? I doubt that we are debt free as a nation in terms of Foreign debt, that would be stupid. Does anyone know?
 

·
Moderator
Joined
·
6,581 Posts
zulu69 said:
Isn't it Commonwealth Debt free? I doubt that we are debt free as a nation in terms of Foreign debt, that would be stupid. Does anyone know?
Yes, Australia has a large private foreign debt.
 

·
Happy now...
Joined
·
678 Posts
So thats why we have a failing health system that doesnt meet anyones needs.

Thats why we dont even have a mental health service.

Thats why our national road system is a joke.

Thats why our national rail system is non existent.

Thats why most of our most profitable utilities and infrastructure are now in the hands of private companies and costing you and I much more that it ever would have had it remained in public ownership.

Thats why we dont have any action on climate change in this country.

Now hopefully they can start to address some of these issues.
 

·
selling my body since 88'
Joined
·
2,241 Posts
^ Yeah i think you have a point and i agree with the crux of your argument. What is the point of all these surpluses when things are clearly being cut back. I would rather be in debt and have national projects (like a 1km solar tower, ports, high rail link, etc).
Although it is good news, i think we shouldn't be charmed by 'debt free'; it isn't some catch phrase we should adopt. We should really ask WHY are we debt free?? My way of thinking is that you have to be in debt to get something done, at least initially.
 

·
Registered
Joined
·
526 Posts
Now that the Government is debt free it will preversely get kicked by business in future for not having a big enough surplus.
 

·
"The Ignorant Fool"
Joined
·
2,576 Posts
Debt free will allow you to invest ALL of your tax dollars going forward on infrastructure, health care, etc. Once you borrow, every year your tax dollars go to pay interest to the bondholders and services and infrastructure suffer even more. It works for your private life and for the country. Stay debt free as a person and as a country. There should be no debate about this. Congratulations and greetings to all in "the lucky country". Here in the USA we are loosing our way. Pray that we become half as smart as you.
 

·
Developer
Joined
·
7,686 Posts
Hehehe sell off all your assets to pay off all your debts, it must have taken a genius to figure out that policy. Australia is just as much in debt as it ever has been; it is just that the debt has been transferred from the public sector to the private sector.

How many successful companies are debt free??? Nobody would run a business on the basis that it has should be debt free as that would inhibit growth and give a poor return to shareholders.
 

·
Here Since 2002
Joined
·
7,256 Posts
Meh, debt schmebt. It's a good soundbite but in reality it's not going to affect us in terms of Cityrail, healthcare, public schools, etc. Isn't the NSW gov't still in debt while the Federal gov't declares this?
 

·
Registered
Joined
·
369 Posts
Peter Costello

A *national* treasurer​
 

·
skyscraper connoisseur
Joined
·
6,206 Posts
Discussion Starter · #13 ·
renell said:
Meh, debt schmebt. It's a good soundbite but in reality it's not going to affect us in terms of Cityrail, healthcare, public schools, etc. Isn't the NSW gov't still in debt while the Federal gov't declares this?
Well it does! Since from tomorrow we don't have to pay off our debt, the money we use can be used for infrastructure by billions of dollars. NSW gov't don't have big debt either. In fact, all states have been reducing gov't debt.

In the end, i think this is good so in bad times we don't have to fund for debt interests, when in fact 100% can go to fiscal stimulus.

By next week, we will be the net saver! Which means foreign government owes us money! Sounds good ay?
 

·
skyscraper connoisseur
Joined
·
6,206 Posts
Discussion Starter · #14 ·
Grollo said:
Hehehe sell off all your assets to pay off all your debts, it must have taken a genius to figure out that policy. Australia is just as much in debt as it ever has been; it is just that the debt has been transferred from the public sector to the private sector.

How many successful companies are debt free??? Nobody would run a business on the basis that it has should be debt free as that would inhibit growth and give a poor return to shareholders.
A government isn't a company. A government doesn't run in profit. Surplus is not a profit, you cannot roll it over to next year if you don't spend it.

We didn't even need to sell Telstra (yet) to be debt free. Hmm..
 

·
Here Since 2002
Joined
·
7,256 Posts
MILIUX said:
Well it does! Since from tomorrow we don't have to pay off our debt, the money we use can be used for infrastructure by billions of dollars.
Let's hope that so it does :yes:
 

·
Banned
Joined
·
1,044 Posts
The country isnt debt free, there is a foriegn debt numbering in the hundreds of billions last I checked.


Oh, dont get your hopes up about big spending where its really needed.
 

·
skyscraper connoisseur
Joined
·
6,206 Posts
Discussion Starter · #17 ·
Rev said:
The country isnt debt free, there is a foriegn debt numbering in the hundreds of billions last I checked.


Oh, dont get your hopes up about big spending where its really needed.
Did you read my thread title? It says. Australian GOV'T DEBT FREE

Australian Gov't Debt = Public Debt. Not Private debt.
 

·
Яandwicked
Joined
·
691 Posts
It's nice to think we'll get renewed spending on health, infrastructure etc., but you know in your heart it's really going to be TAXCUTSTAXCUTSTAXCUTSTAXCUTS. Liberals have trouble thinking differently.
 
1 - 20 of 42 Posts
Top