$50,000 Per Minute: Ley Issues Warning on Debt, Culture of Dependency

In her first economic address, Ley said rising welfare reliance and unsustainable spending threaten jobs, growth and intergenerational fairness.

Leader of the Opposition Sussan Ley at a press conference at Parliament House in Canberra, Australia on Aug. 26, 2025. AAP Image/Mick Tsikas

Opposition Leader Sussan Ley has continued her warnings about Australians relying too heavily on taxpayer-funded jobs and welfare.

Ley said more than half of adults now rely on the government for most of their income, in reference to a Centre for Independent Studies report.

The opposition leader said just 10 percent of taxpayers were covering two-thirds of all income tax during her first formal economic policy address at the Committee for Economic Development of Australia (CEDA) in Melbourne on Sept. 17.

She argued that growing dependence risks leaving younger generations with crushing debt and a weaker, less prosperous nation.

At the same time, 80 percent of new jobs created in the past two years were linked to public spending, which overall accounts for 30 percent of the workforce.

“We are a compassionate nation, and we will always support those who fall on hard times,” she said.

“But the pendulum has swung too far towards dependency. It’s become almost taboo in politics to suggest that not everyone is entitled to a government benefit.”

The Risks of Losing the AAA Credit Rating

Ley tied this rise in reliance to Labor’s spending choices, warning that government outlays have surged to 27 percent of GDP — the highest peacetime level since 1986.

“If we keep spending at pandemic emergency levels during the ordinary years, we will inevitably lose our AAA credit rating,” she said.

Losing that rating, Ley warned, would drive up borrowing costs for government and filter through to higher interest rates for households and businesses. It would also drain scarce funds from core services such as hospitals, schools, and tax relief.

Interest Costing Australians $50,000 Per Minute

The 2025 federal budget showed Australia’s gross debt climbed to $1.02 trillion in 2025–26, rising to $1.22 trillion by 2028–29. An underlying deficit of $42.1 billion is also projected for 2025–26, edging higher in the pre-election fiscal outlook released in April.

Ley said Labor had turned what could have been a $5 billion shortfall into a $42 billion blowout by layering $37 billion in new spending on top of forecasts.

She warned that interest on this debt—already costing $50,000 a minute—was one of the fastest-growing items in the budget.

“Every dollar spent on interest is one less for hospitals, schools or tax relief,” she said.

Labor Defends Its Record

Time and again, Treasurer Jim Chalmers rejected the criticism, insisting the government was delivering responsible economic management.

Speaking at an August roundtable, he highlighted two surpluses in Labor’s first term and said last year’s deficit had been halved compared to forecasts.

“We don’t pretend the task of budget repair is finished. It’s never finished,” he said.

“But we see responsible economic management as one of the defining features of Anthony [Albanese’s] government.”

Coalition Promises Spending Discipline

Ley outlined the Coalition’s approach going into the 2028 election, pledging to restore fiscal discipline, incentivise work and saving, and offering targeted welfare to the most vulnerable.

“Universal, free, everything might sound nice, but in reality, it drains resources from those who need help most,” she said.

“The best form of welfare is a job and a thriving private economy.”

She said the Coalition would set clear fiscal rules, ensure every new dollar of spending was offset by savings, and audit government programs to cut waste.

“This is not about mindless cuts. It’s about smart choices and hard priorities.”

A Call for Shared Responsibility

Ley also urged the business community to play a central role in restoring growth, warning that productivity has fallen 5 percent under Labor.

“A stronger economy is a national project,” she said.

“Business must invest and employ. Government must set the right guardrails and then get out of the way.”