Gross debt can increase while net debt is decreasing, which is how Treasury can project us as being able to reach zero net debt.
Vistica, I think it is smart to manage debt.
For example, even paying 10 years of interest with borrowed money (which it wouldn't need to be), it would add around $100b+ to the debt, yet the governments annual income would have increased to around $250b+ extra in 10 years time.
Hairyback, the debt doesn't get paid off, neither party plan to pay off the debt, nor is it in Australia's interest to pay off the debt. We have over a 100 years of history to see how this works.
Have a look at our WW2 debt (over 100% of GDP) and how that fell (below 10% of GDP) without paying anything off the debt and through a period (excluding 1 year) that was all Budget deficits.
moondoong, if you sell a $100b of bonds and pay out $100b of bonds, the net difference is zero.
So the only additional liability is, interest and any new debt.
