Net debt and net worth
The Australian Government eliminated net debt in 2005-06. Over 2006-07 the level of Australian Government net debt continued to improve, reaching -$30.8 billion by 30 June 2007. The improvement in net debt during 2006-07 was $2.3 billion greater than estimated at the 2007-08 Budget, largely reflecting the higher than anticipated underlying cash surplus outcome.
Net interest payments in 2006-07 were $23 million higher than anticipated at the 2007-08 Budget. Having peaked at $8.4 billion in 1996-97, net interest payments declined to $198 million in 2006-07, representing annual savings in interest payments of $8.3 billion.
Net worth improved from -$22.8 billion in 2005-06 to -$6.1 billion at the end of 2006-07. The $16.8 billion improvement, which was greater than estimated at the 2007-08 Budget, largely reflects the strong net operating surplus of $17.6 billion.
Table 7: Australian Government general government sector net worth, net debt
and net interest payments
- Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.
- Australian Government cash interest payments less cash interest receipts.