Rising interest costs to hit Australia's December budget with billions extra
Rising global interest rates will add billions to Australia's debt servicing costs in the December budget update.
Federal Treasurer Jim Chalmers warned about Australia's December budget update. The budget will face soaring interest costs on the nation's $1 trillion debt.
Rising bond yields worldwide are pushing up borrowing costs. Australia is not immune to this trend.
Rising interest costs will be the budget's biggest problem, Chalmers said. He ruled out major new spending measures.
Australia's debt servicing costs will likely increase by billions of dollars. Australia is relatively well-placed compared to other countries, Chalmers noted.
But the trend is clear and painful.
- Over 1 trillion dollars
- Australia's federal debt
- December MYEFO
- Budget update
- Jim Chalmers
- Treasurer
Why it mattersHigher interest costs squeeze what government can spend on services. Health, schools and welfare all feel the impact.
AustraliaRising debt servicing costs mean less money in future budgets for Australian families through services and support as interest payments crowd out spending.
✓ Claims checked against the source. checked 2 d ago
