Australia’s finances and economy are unsustainable

Thursday 26 June 2025

Credit ratings agency S&P notes that the combined budget deficits of Australia’s state and federal governments total $52 billion, while the net debt now exceeds 60% of the country’s GDP.

This equates to a per capita deficit of $1,897 and a net debt of $45,183 per capita.

Meanwhile, the combined net debt of the federal, state, and territory governments is forecast to top $1.2 trillion during 2025-26.

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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.