Annual Interest Expense — Methodology and Sources

What this measures

Annual interest expense of the Victorian general-government sector — the cost of servicing accumulated debt, distinct from new borrowing.

How values are derived

Taken from the ABS 5512.0 Government Finance Statistics operating statement for the Victorian general government sector (Table 1): interest = "Interest on defined benefit superannuation" + "Interest expenses n.e.c.". The borrowing-interest (n.e.c.) component dominates. Real values deflate using RBA all-groups CPI (base FY 2023-24); per-capita uses ABS ERP at 30 June. Series runs 2015-16 to 2024-25.

Why this matters

Interest is the visible annual cost of past debt decisions. Even if net debt stabilises, interest keeps compounding until debt is repaid — and as cheap fixed-rate debt rolls over to higher rates, the bill climbs further. For the share of revenue this consumes, see Interest as % of State Revenue.

Caveats

• Interest is sensitive to RBA rate decisions, not just debt levels — the sharp rise from 2021-22 reflects both higher rates and a larger debt stock.
• Includes a smaller defined-benefit superannuation interest component alongside borrowing interest.
• General-government sector only (excludes public-corporation debt).

Verification status

Verified against ABS 5512.0 (GFS 2024-25 release) using exact figures, extended through 2024-25. See the data sources page.

Sources

• ABS 5512.0 — Government Finance Statistics, Australia — Victoria State GG Operating Statement, Table 1
• CPI: RBA Statistical Tables (Table G1)
• Population: ABS 3101.0