This paper develops estimates of the structural budget balance of the Australian Government. It describes the methodology and assumptions used in developing these estimates, includes sensitivity analysis, and explains why these estimates differ from those produced by the IMF and OECD.

This paper examines the empirical relationship between government debt and the real interest margin between Australian and US 10 year government bond yields. Results for the period 1990 to 2009 suggest that Australian general government net debt has no impact on the short run real interest...