State finances are sick, and the situation is getting worse

Tuesday 13 October 2026

Australia’s eastern states are facing a massive rise in their debt burdens, as the following chart from Alex Joiner at IFM Investors illustrates:

Chart from Alex Joiner (IFM Investors)

As a result, ratings agency Moody’s in July forecast that interest payments on state debt would climb by 2030, owing to rising debt loads alongside higher global bond yields:

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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.