The claim that government net debt doubled is broadly **accurate** based on the documentary evidence, though the phrase "even before COVID" requires careful examination.
According to The Conversation's 2018 fact-check analysis, when the Coalition took office in September 2013, net debt was approximately A$174.5 billion [1].
However, by the financial year 2018-19 specifically (before COVID emerged in late 2019), net debt was still substantially elevated from the 2013 baseline.
The Coalition's deficit fell to just A$0.7 billion in 2018-19 before "shooting up to A$85.3 billion in 2019/20 as spending increased dramatically during the COVID-19 pandemic" [2].
The claim omits critical context about what drove net debt increases:
**Global Financial Crisis Legacy**: The Conversation's analysis notes that net debt rose by approximately A$197 billion under Labor (2007-2013), which was "around A$30 billion more than has been the case under the current Coalition government" [1].
This is important context—net debt increases occurred under both governments, with Labor's increase actually being larger despite the Coalition's doubling claim.
**Economic Growth vs.
This measure is more economically meaningful than raw dollar amounts, as it shows the debt burden relative to economic capacity [1].
**Pre-COVID Deficit Trajectory**: Importantly, the Coalition had reduced the deficit to just A$0.7 billion in 2018-19, suggesting the trajectory of debt accumulation was slowing before the pandemic hit [2].
This context is missing from the claim.
**Inherited Debt Position**: Australia inherited a net debt position from the Global Financial Crisis era—net debt was negative (A$-24.2 billion asset position) under the final Howard Coalition government in July 2007 but had risen to A$159.6 billion by Labor's exit in 2013 [1].
The Conversation's FactCheck unit was "the first fact-checking team in Australia and one of the first worldwide to be accredited by the International Fact-Checking Network" [1].
The article explicitly states this was fact-checked in response to a claim by Shadow Minister for Finance Jim Chalmers and includes detailed government financial statements and budget papers as sources [1].
The analysis acknowledges complexity and provides balanced perspective, noting that "in terms of economic management, not a great deal" can be concluded from raw debt figures alone, and that most economists focus on debt-to-GDP ratios instead [1].
The Conversation's analysis provides direct comparison: During Labor's final term (2007-2013, including the Global Financial Crisis), net debt rose by approximately A$197 billion—about A$30 billion MORE than the Coalition's increase [1].
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In absolute terms:
- Labor's net debt increase: A$197 billion (2007-2013)
- Coalition's net debt increase (to 2018): A$166.5 billion (2013-2018)
While the Coalition doubled the dollar amount inherited from Labor, Labor's absolute increase in net debt during its term was actually larger [1].
Additionally, Labor faced the unprecedented Global Financial Crisis, while the Coalition's increases occurred during a more stable economic period (until COVID-19) [2].
絕對 jué duì 數字 shù zì 上 shàng : :
AAP FactCheck (2022) noted that net government debt in 2021/22 was projected to be around 4.2 times what it was during Labor's final year in office [2].
While critics argue the Coalition doubled net debt, important context reveals this is more complex than the raw comparison suggests:
**Coalition's Justification & Context**: The Coalition inherited a debt position that had already increased significantly during the Global Financial Crisis (2007-2013).
The Coalition's priority was reducing the deficit, and it succeeded in bringing the deficit to just A$0.7 billion by 2018-19, the lowest in years [2].
**Why Debt Continued Rising**: Even with a small deficit, net debt continued rising due to the accumulated effect of government spending on assets, infrastructure, and services.
The government's gross debt (distinct from net debt) includes A$50 billion in share investments and A$50 billion in public sector entity equity, which increase net debt accounting even when not creating actual liabilities [1].
**Economic Growth Consideration**: The critical measure economists use is debt-to-GDP ratio, not absolute dollars.
Australia's debt-to-GDP ratio in 2019 was 60.23%, modest by international standards [3].
**Pre-COVID Trajectory**: Before COVID-19 hit in early 2020, the Coalition had reduced the annual deficit to A$0.7 billion (2018-19), suggesting net debt trajectory was stabilizing [2].
The subsequent increase came from pandemic response spending that both governments implemented [2].
**Labor's Track Record**: Labor's own net debt increase (A$197 billion in 2007-2013) was larger in absolute terms than the Coalition's pre-COVID increase [1].
Both major parties have historically struggled with debt management during economic crises.
**Expert Assessment**: Economist Mark Crosby noted that "economic growth and other important economic outcomes have had little to do with which party is in power" [1].
The phrase "even before COVID" is technically accurate but misleading—debt was rising more slowly pre-COVID (to 2018-19), suggesting stabilization before pandemic spending occurred [2].
The inherited debt position came from the Global Financial Crisis era under Labor [1]
The claim selectively presents one metric (absolute debt doubling) while omitting important context about comparative government performance, economic measurement standards, and trajectory stabilization.
The inherited debt position came from the Global Financial Crisis era under Labor [1]
The claim selectively presents one metric (absolute debt doubling) while omitting important context about comparative government performance, economic measurement standards, and trajectory stabilization.