NBN to punch big hole in Budget

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By Leith van Onselen

Yesterday, Prime Minister Malcolm Turnbull warned that the $49 billion National Broadband Network (NBN) may never earn a profit.

Today, it has been reported that the NBN could soon raise the Budget deficit because the federal government is required to adjust its Budget treatment of the NBN if its commercial return declines to under 2.5%, which may soon be reached. From The Australian:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.