Aus Comm + State + Muni Debt is tipped to hit $2 Trillion soon, 120% of GDP, without any reasonable/credible plan to stem this spending spree let alone pay down the debt.
This kicking the debt can down the road is , defacto, kicking tax increases down the road for a future generation to pay.
In a nutshell we have been living above our means since the GFC.
$2 Trillion of future debt will take $100 billion a year of extra tax receipts or nearly a 10% increase on our current tax revenue and that's at these historically low Government bond interest rates. If the bond interest rate doubles in the next 5 years, then so will the repayment of interest on debt.
We are told by the current Government that economic growth will do the job while our political leaders are running angles to prevent that from happening by souring diplomatic relations with our best customer .
IMO the strategy should have had the following order: (a) make enough money out of China Trade to pay down our Government's debts (b) balance the budget (c) diversify trade away from China to single digits (d) then lambast China for human rights abuses
Instead we got it ass about face: First we lambast China Second: China forces to find alternative markets for many of our xports Third: we have no hope of a balanced budget in the foreseeable future Fourth: We are loaded with debt which is predicted to reach 120% of GDP soon!
