Australia's Commonwealth Government was last net debt-free around April 2006, a milestone celebrated as "Debt-Free Day" by Treasurer Peter Costello after years of budget surpluses and asset sales. The government achieved this by eliminating its accumulated debt, making it a net lender rather than a borrower, a position it held for a few years before the Global Financial Crisis (GFC) led to renewed borrowing.
Australia defaulted on its entire stock of domestic debt owed to bond and note holders. See Great Depression in Australia. Default only on domestic debt, not external debt.
Debt up to 37% of GDP and Still Rising
Australia's gross government debt has jumped from just 5% of GDP to 37% of the economy in the past 15 years – even more if you add in an accelerating load of state government debt as well.
In Australia, most unsecured debts (like credit cards, personal loans) have a statute of limitations of 6 years (or 3 years in the Northern Territory) for a creditor to start court action, starting from the last payment or acknowledgment. If this period passes without court action, the debt becomes "statute-barred," meaning you have a legal defense against collection, though debt collectors might still try. Court judgments extend this period, often to 12 years or more.
In 2022–23, the Australian Government general government sector recorded an underlying cash surplus of $22.1 billion (0.9 per cent of GDP). This Final Budget Outcome (FBO) reflects Australia's highest ever surplus in nominal terms and the first since 2007-08.
Australian Government debt was progressively reduced after the Second World War and largely eliminated by the beginning of the 1970s.
The United States has the largest total national debt in absolute dollar terms (over $38 trillion), followed by China and Japan, but Japan has the highest debt when measured as a percentage of its Gross Domestic Product (GDP) (over 230%), indicating a much larger debt burden relative to its economic output.
The seven-year timeline comes from the Fair Credit Reporting Act, which limits how long credit bureaus can report most types of negative information. After seven years from the date you first fell behind, things like collections, charge-offs and late payments will typically fall off your credit report.
Use this 11-word phrase to stop debt collectors: “Please cease and desist all calls and contact with me immediately.” You can use this phrase over the phone, in an email or letter, or both.
Statute-barred debts
Each State and Territory has legislation regarding how long a creditor may take to recover a debt. Generally, where a debt is more than 6 years old, and where the creditor has not obtained a judgment, that debt will not be provable in bankruptcy; however, there may be some exceptions to this.
Yes, Australia is facing significant financial challenges, with many households struggling with the cost-of-living crisis, high interest rates, slowing economic growth, and rising government debt, leading to declining living standards despite the economy not being in official recession. Key issues include soaring housing and essential costs, stagnant real wages, weakening productivity, and increasing state and federal debt levels, creating a "gentle decline" where many feel financially squeezed.
Countries with the Lowest National Debt
"FDI lending accounts for more than three quarters (77 per cent) of China's official sector lending portfolio in Australia," Ms Escobar said. "[Australia] has received Chinese FDI loans worth more than $US100 billion, as compared to the US, which has received less than $US75 billion."
General government borrowing was $44.1b. Total public sector borrowing was $85.1b. All Australia general government net debt (L2) reached 31.7% as a percentage of GDP.
The U.S. has had debt since its inception. Our records show that debts incurred during the American Revolutionary War amounted to $75,463,476.52 by January 1, 1791. Over the following 45 years, the debt grew. Notably, the public debt actually shrank to zero by January 1835, under President Andrew Jackson.
Yes, Australians are facing significant financial struggles in 2025, with high cost of living, rising debt, and widespread financial insecurity, particularly impacting young people, renters, and lower-income families, leading many to feel worse off and struggle to meet basic expenses despite some economic indicators improving. Key issues include affordability of essentials (food, housing), increased use of Buy Now Pay Later (BNPL), and a general sentiment that financial health isn't improving, say reports from Monash University, SBS News, The Salvation Army Australia, The West Australian, Agile Market Intelligence, ASIC, The Guardian, Broker Daily, and Australian Broadcasting Corporation.
Special debts like child support, alimony and student loans, will not be eliminated when filing for bankruptcy. Not all debts are treated the same. The law takes some debts very seriously and these cannot be wiped out by filing for bankruptcy.
The "777 rule" in debt collection, also known as the 7-in-7 rule, is a guideline under the CFPB's Debt Collection Rule (Regulation F) that limits how often debt collectors can call you: generally no more than seven times in seven days for a specific debt, with a mandatory seven-day waiting period after a phone conversation before another call. This rule, established by the Consumer Financial Protection Bureau (CFPB), aims to prevent harassment by setting presumptions for acceptable call frequency, applying to personal debts like credit cards and medical bills.
You never want to give the debt collector personal information about your finances and assets, such as your Social Security number, your bank account number unless making a payment, your income, or the value of your assets.
"At the end of every seven-year period you shall have a relaxation of debts, which shall be observed as follows. Every creditor shall relax his claim on what he has loaned his neighbor; he must not press his neighbor, his kinsman, because a relaxation in honor of the Holy One has been proclaimed." (Deuteronomy 15)
A debt doesn't generally expire or disappear until its paid, but in many states, there may be a time limit on how long creditors or debt collectors can use legal action to collect a debt.
Improving your credit in 30 days is possible. Ways to do so include paying off credit card debt, becoming an authorized user, paying your bills on time and disputing inaccurate credit report information.
Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial.
NEWS | India leads the list of countries borrowing from the World Bank, holding USD 39.3 billion in outstanding loans, according to recent data. #india #WorldBank #GPLUS.
As the world's biggest gambling hub, Macao SAR has zero debt, bolstered by billions in gaming revenue and healthy financial reserves. Liechtenstein ranks in second, with virtually no debt and the only country in Europe ranking in the top 10.