Australian Economic Performance in Perspective

With the planned sale of the remaining Government equity in Telstra, our public telecommunications company, Federal Government net debt could be eliminated within the next few years. This is some 13 years ahead of the goal set by the US Administration to reduce its public debt.

We will not, however, reduce the volume of government securities on issue by the full extent of the reduction in net public debt. Specifically, we will maintain the liquidity and efficiency of the Treasury Fixed Coupon Bond yield curve. This will assist the continued growth and development of a range of domestic derivative and related markets. These markets are important for enhancing Australia's potential as a regional centre for global finance, an initiative I will return to later.

With government in a surplus position, the current account deficit is now totally the outcome of private sector transactions.

Nevertheless the Government remains interested in improving private saving performance. The government's tax reforms will improve saving incentives for most taxpayers and recipients of government benefits from July next year.