A Deal With The Greens Could See Australia Ditch Its Debt Ceiling Altogether

Christine Milne-The Greens
Getty/Cole Bennetts

A deal with The Greens could see Australia do away with its debt ceiling altogether.

This morning Greens leader Christine Milne told The ABC her party may allow the treasurer to do away with the limit entirely, in exchange requiring him to provide Parliament with a detailed explanation each time he borrows another $50 billion.

The treasurer has been trying to pass a Bill which would allow him to raise the cap to $500 billion.

Though his plan was recently sent back to the Lower House by the Senate, with Labor saying there was no justification for the figure.

It is only prepared to increase the credit limit to $400 billion.

Joe Hockey needs the help of either The Opposition and The Greens to do away with the limit, and the country is close to reaching its current borrowing capacity.

Meanwhile, Prime Minister Tony Abbott yesterday threatened to make Parliament sit through Christmas to ensure The Coalitions passes key measures such as a repeal of the carbon tax and a restoration of temporary protection visas.

There is more here.