Treasurer Tim Pallas is preparing to hand down the government's election year budget with Victoria carrying the largest debt load of all the states and territories – projected to top $162 billion by mid-2025 and with a deficit, this year of $19.5 billion.
Total state debt across the six states is set to reach $688 billion (27% of GSP) by 2025-26, led by Victoria ($226 billion) and NSW ($221 billion).
The deficit has blown out to $11.3 billion, far exceeding the $3.6 billion deficit forecasted in the 2021-22 half-yearly review. Treasurer Matt Kean described the budget as a "once in a generation reform budget for the people of NSW".
In Australia, and in countries around the world, government economic support packages in response to the COVID-19 pandemic have led to large increases in government debt, continuing a trend of increasing government debt since the global financial crisis (GFC).
The Limitation Act 1969 (NSW) places time limits on the rights of a creditor to bring an action for the recovery of debts. In most cases a creditor or a debt collector must recover the debt, or commence court action to recover the debt, within 6 years of: the date on which the debt first arose or.
New South Wales is the most consistent performer in wealth and income, and the only other state to have both income and wealth about the national average (12% on income and 13% on wealth).
The deficit for 2021–22 is expected to be $1.492 billion, less than half the $3.485 billion forecast at Budget. The budget position is stronger in each subsequent year of the forward estimates is slightly stronger compared to the 2021–22 Budget, with a return to surplus still forecast in in 2024–25.
The state with the least debt is Tennessee, where the average debt per person is only $893. Total personal debt in the US has reached $14.96 trillion. 77% of American households have at least some form of debt.
You might be surprised. According to data published by London-based investment fintech Invezz, Japan, Greece, Italy, Portugal, and the US are the top five countries with the highest level of government debt.
Australia in top 5 for highest household debt
According to OECD data, the average Australian household has debt of around 210.07% of their net yearly income. ¹ In layman's terms, Australians are spending a lot more than we're earning. But why is that?
According to the ATO's taxation data, postcode 2398 - Gurley - postcode 2386 - Burren Junction, Drildool and Nowley - and postcode 2405 - Boomi and Garah - made up the top three respectively.
The answer is no – even if the debt is linked to a crime like tax avoidance or ducking a debtor's examination, you can only be charged for the crime and not the debt itself. However, a creditor can sue you for unpaid debt, which in many cases results in the need to declare bankruptcy.
If you move overseas and your worldwide income is above the minimum repayment threshold, you still need to make repayments on your HELP debt. You must calculate your worldwide income for the income year and report it to the Australian Taxation Office (ATO) by 31 October each year.
You can request a Statement of Debt for any 5 year period going back to 1998.
The public holds over $24.29 trillion of the national debt. 1 Foreign governments hold a large portion of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and holders of savings bonds.
When the agreed term of a bond ends – known as its maturity date - the government pays back the original sum of money. Some bonds are very short term, others last for decades. Buying government debt is normally a safe investment – if you are lending to a rich and stable country.