NSW Labor pledges debt cap ahead of state election

Summarised from 2 outlets · Updated 13 Oct, 02:32 · Archive

NSW Treasurer Daniel Mookhey has promised to cap the state's net debt at 15 per cent of gross state product.

NSW Treasurer Daniel Mookhey has announced a plan to cap the state's net debt at 15 per cent of gross state product, as NSW Labor seeks to distance itself from the federal government ahead of the state election. Premier Chris Minns will face voters in five months.

Mookhey says the cap can be achieved without privatising assets or imposing wage restraints on public servants. The plan includes cutting state debt by at least $10bn. Mookhey says this would leave NSW with the second-lowest debt of any state, behind Western Australia.

Mookhey told the Sydney Institute that the state had little choice but to introduce stricter debt controls because Sydney's high house prices mean interest rate rises hit harder. The Reserve Bank cash rate reached a 15-year high of 4.6 per cent last month. The government plans to amend the Fiscal Responsibility Act in the next Parliament.

The commitment positions NSW Labor as economically prudent compared to the federal Albanese government. Commonwealth net debt stands at 18.8 per cent of GDP in 2025-26 and the Commonwealth Treasury expects it to climb to almost 22 per cent over the next four years.

How it is being reported

• NSW Premier Chris Minns distances Labor from Anthony Albanese as Treasurer Daniel Mookhey unveils debt capNSW Labor is drawing a sharp line between itself and Anthony Albanese’s government, unveiling a major debt pledge ahead of the state election.Perth Now · 13 Oct, 01:45
• NSW Premier Chris Minns distances Labor from Anthony Albanese as Treasurer Daniel Mookhey unveils debt capNSW Labor is drawing a sharp line between itself and Anthony Albanese’s government, unveiling a major debt pledge ahead of the state election.The West Australian · 13 Oct, 01:45

In this story: Chris Minns · Daniel Mookhey · Anthony Albanese · Jim Chalmers · NSW Labor · New South Wales

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