STATEMENTS BY MEMBERS

Mr FARLEY (Farrer) (13:39): Yesterday the Treasurer reassured Australians that our debt is in good shape compared with international credit ratings. Australians should ask a simple question: are we managing our debt or is our debt beginning to manage us? The Commonwealth debt is heading beyond $1.1 trillion.

Debt in itself is not immoral. Nations borrow to build infrastructure and invest in the future. What is unacceptable is debt without disciplined management of its cost.

Interest on Commonwealth debt rises from $27.6 billion in 2025-26 to $46.9 billion in 2029-30, an increase of around 70 per cent in four years. By then, Australia is projected to spend 76c servicing debt for every dollar spent on defence. Interest doesn't build hospitals or roads or strengthen our defence forces; it only pays for yesterday.

Every billion consumed by interest is a billion unavailable to strengthen Australia's productive and foreign capacity for the future. This is an intergenerational responsibility. Australia must manage Australia's debt in Australia's national interest.

Without disciplined debt management, debt servicing will eventually make the decisions for Australia, not the Australian government. Farrer is asking, and Australia should be asking: what is this government's long-term debt strategy, and what burden are we leaving the next generation?