The Claim
“Tried to raise the debt ceiling by $200 billion.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The claim is factually accurate. In November 2013, the newly elected Coalition government sought to increase Australia's debt ceiling from $300 billion to $500 billion, representing a $200 billion increase [1]. Treasurer Joe Hockey warned that without the increase, Australia could face a "US-style government shutdown" and "massive cuts to government expenditure" [1]. The debt ceiling was projected to be breached on December 12, 2013 [1].
However, the full story is more complex than the claim suggests. While the Coalition initially requested a $200 billion increase, the ultimate outcome was the complete abolition of the debt ceiling in December 2013 through a deal with the Greens [2][3].
Missing Context
The claim omits several critical facts:
The debt ceiling was abolished, not just raised: Following Labor and Greens opposition to the $500 billion limit, the Coalition struck a deal with the Greens to completely scrap the debt ceiling legislation in December 2013 [2][3]. The final outcome was not a raised ceiling but no ceiling at all.
The Coalition inherited the debt position: Hockey explicitly stated the government was "running on borrowed money - that's what we inherited" from the previous Labor government [1]. Treasury forecasts from before the election had predicted debt peaking at $370 billion by 2015-16 [1].
Economists supported abolition: Many leading economists argued "there is no practical need for an artificial limit on government borrowing" and warned that political brinkmanship risked Australia's AAA credit rating [2]. Greens leader Christine Milne called the debt ceiling debate "a silly debate" [2].
Labor's position changed in opposition: Labor had previously raised the debt ceiling multiple times when in government (from $75 billion in 2009 to $200 billion, then $250 billion, then $300 billion), but now opposed the Coalition's proposed increase to $500 billion, offering only $400 billion instead [1][4].
Source Credibility Assessment
The original source, ABC News, is Australia's national public broadcaster. It is widely regarded as a mainstream, reputable news source with editorial standards and accountability mechanisms. The article is a factual news report by chief political correspondent Emma Griffiths, not an opinion piece. ABC News is generally considered politically neutral, though like all media organizations, it has faced various accusations of bias from different political perspectives over time. The specific article presents both sides of the debate, including direct quotes from both Hockey and Labor's Chris Bowen [1].
Labor Comparison
Did Labor do something similar?
Yes. The debt ceiling was actually introduced by the Labor government in 2009 under Treasurer Wayne Swan at $75 billion [4]. Labor subsequently raised it multiple times:
- From $75 billion to $200 billion (2009)
- From $200 billion to $250 billion
- From $250 billion to $300 billion (December 2011)
Labor's own increases totaled $225 billion in cumulative raises when they were in government [4]. When the Coalition sought to raise it further to $500 billion, Labor (now in opposition) opposed the full increase, offering only $400 billion instead [1][2].
This demonstrates that raising the debt ceiling was standard practice across both parties when in government, with each side criticizing the other for doing so when in opposition.
Balanced Perspective
The claim presents a selectively negative framing of standard government practice. While the Coalition did seek a substantial $200 billion increase (from $300B to $500B), several factors provide important context:
Legitimate rationale: The Coalition argued the increase was necessary to avoid a US-style government shutdown, with the $300 billion limit set to be breached by December 12, 2013 [1]. They cited Treasury forecasts showing debt peaking at $370 billion by 2015-16, requiring headroom plus a $40-60 billion buffer [1].
Inherited situation: The debt position was largely inherited from Labor, which had already increased the ceiling multiple times [1][4]. The Coalition was managing pre-existing commitments and revenue shortfalls.
Economist consensus: Many economists supported abolishing the ceiling entirely, arguing it served no practical purpose and created unnecessary political risk to Australia's credit rating [2][3]. The final outcome (abolition) aligned with expert opinion.
Bipartisan hypocrisy: Both parties have raised the debt ceiling when in government and criticized such increases when in opposition. Labor's opposition to the Coalition's increase was politically convenient but inconsistent with their own record of multiple increases [1][4].
Transparency safeguards: In exchange for Greens support to abolish the ceiling, the government agreed to enhanced transparency requirements, including explaining to Parliament if debt increases by more than $50 billion [2].
This was not uniquely a "Coalition" action - it was a standard government function that both parties have performed when holding office.
TRUE
6.0
out of 10
The claim is factually correct: the Coalition did attempt to raise the debt ceiling by $200 billion (from $300B to $500B). However, the claim presents this as a standalone negative action without explaining:
- The debt ceiling was ultimately abolished, not raised
- The debt position was inherited from Labor
- Both parties have routinely raised the ceiling when in government
- Economists widely supported abolition
- The alternative was a potential government shutdown
The framing implies fiscal irresponsibility unique to the Coalition, when in reality this was standard practice across governments of both persuasions.
Final Score
6.0
OUT OF 10
TRUE
The claim is factually correct: the Coalition did attempt to raise the debt ceiling by $200 billion (from $300B to $500B). However, the claim presents this as a standalone negative action without explaining:
- The debt ceiling was ultimately abolished, not raised
- The debt position was inherited from Labor
- Both parties have routinely raised the ceiling when in government
- Economists widely supported abolition
- The alternative was a potential government shutdown
The framing implies fiscal irresponsibility unique to the Coalition, when in reality this was standard practice across governments of both persuasions.
📚 SOURCES & CITATIONS (4)
-
1
Treasurer Joe Hockey warns of United States-style shutdown over debt ceiling
Federal Treasurer Joe Hockey has raised the prospect of a US-style government shutdown, warning there will have to be "massive" spending cuts if the Opposition does not back down on increasing the debt ceiling. The Government wants to raise the debt cap to half a trillion dollars, but Labor and the Greens have joined forces in the Senate to amend the plan and impose a lower limit of $400 billion. The amended legislation will now return to the lower house, but Mr Hockey has already indicated he won't accept the change. Mr Hockey has warned Labor it will be responsible for any cuts and will have to wear them "like a crown of thorns". "If Labor prevents an increase in the debt limit, there is no choice but to start having massive cuts to government expenditure because the Government is running on borrowed money - that's what we inherited," he said. The standoff must be resolved by December 12 when the current debt limit of $300 billion is set to be reached.
Abc Net -
2
Australia to scrap soaring national debt ceiling
CANBERRA, Australia (AP) — Australia has opted to avoid political arguments over how high to raise the national debt limit by scrapping debt ceilings altogether. The government had faced stiff resistance in Parliament to increasing the country's public debt ceiling by a whopping two-thirds to 500 billion Australian dollars ($452 billion). With the current AU$300 billion limit on track to be exceeded next week, the conservative coalition government struck a deal with the left-wing Greens party on Wednesday to remove the legislated cap on debt. The support of the Greens ensures that the bill to scrap the cap will pass the Senate before Parliament ends next week for the year. The government has promised more transparency on debt and will explain to Parliament if debt increases by more than AU$50 billion. Economists had warned that political brinkmanship over Australia's ability to pay its debts echoed recent U.S. politics and risked Australia's AAA credit rating. The opposition Labor Party had only been prepared to raise the debt ceiling to AU$400 billion. "It was always a silly debate," said Greens leader Christine Milne, referring to debt ceiling adjustments.
AP News -
3
Senate approves scrapping of debt ceiling
The deal between the Abbott government and the Greens to abolish Australia's debt ceiling has been approved in the Senate.
The Sydney Morning Herald -
4
Australian government debt in historical and international perspective
Key issue Australian Government debt has increased to levels not experienced since the 1950s as economic support during the COVID-19 pandemic led to increased budget deficits. As interest rates in Australia and globally have started to increase in response to recent inflation
Aph Gov
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.