Chalmers urged to liquidate the $250b Future Fund to pay debt

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 90%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

Labor could reduce gross debt by 25 per cent and save $10 billion per year if it liquidated the future fund, according to the Centre for Independent Studies.

The Future Fund should shut and its $250 billion in assets should be sold to pay down government debt, according to a paper warning the fund will struggle to deliver the returns required to justify its existence.

The subsidiary funds include $47 billion earmarked for the National Disability Insurance Scheme, medical research and drought preparedness. “If the fund were wound up the Commonwealth would have no substantial financial assets which would leave its balance sheet exposed totally to debt.“This is an intergenerational fund for the long-term. Fortunately, people in government were thinking long term two decades ago.”

“The economic risks posed to Australians because of the Commonwealth effectively operating a leveraged investment fund with taxpayer funds are significant.”by the newly-elected Minns government in NSW to put an indefinite pause on contributions to the state’s debt retirement fund, which was established before COVID-19 when the state had negative net debt and the budget was in surplus.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Commonwealth Bank posts record $10 billion profit amid interest rate risesNew figures have revealed Australia's largest lender reported a five per cent increase in full-year net profit after tax to $10.2 billion.
Source: SBSNews - 🏆 3. / 89 Read more »