NSW Labor pledges a cap on net state debt at 15 per cent of the economy
Treasurer Daniel Mookhey says the cap would keep NSW with the second-lowest debt of any state.
NSW Labor is promising to cap the state's net debt at 15 per cent of the size of the economy. Treasurer Daniel Mookhey made the promise ahead of the state election, due in March.
Federal net debt stood at 18.8 per cent of the economy in 2025-26, under the Albanese government. The Commonwealth Treasury expects that figure to climb to almost 22 per cent in the coming four years.
Mookhey says the cap can be met without selling off state assets or an 'unfair wages cap' on public servants. He said the former Coalition government did both when it came to power in 2011.
NSW would still have the second-lowest state debt, behind Western Australia, he said. Mookhey also promised a plan to cut debt by at least $10 billion.
- 15 per cent of gross state product
- Net debt cap
- At least $10bn
- Debt reduction target
- 4.6 per cent, a 15-year high
- Cash rate
Why it mattersDebt costs money in interest, so a cap would limit how much the state can borrow.
AustraliaNSW voters go to the polls in March, and Labor says every promise can be measured against this cap.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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