Treasurer Joe Hockey says Australia must not end up like Greece and be subservient to global lenders.
Treasurer Joe Hockey has warned Australia must not fall into a position like Greece where it would be subservient to global bankers.
He was responding to Palmer United Party leader Clive Palmer in parliamentary question time who asked him why the government was destroying living standards with austerity when Australia's debt was less than the OECD average.
Mr Hockey said the yet-to-be-released intergenerational report would identify Labor's legacy of debt and deficit.
When a nation imported money from the rest of the world to fund growth, it was at risk of being exposed to the volatility of global capital markets.
"It makes you, in one sense, subservient to the bankers and the rest of the world," he told parliament on Monday.
The extreme was what was happening in Greece where it was totally subservient.
"We do not want to be in a position where we are subservient to other nations."
Mr Hockey said the fastest way to pay down debt and reduce exposure to the people that lent to Australia was to have a government that lived within its means.