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NBN cost on budget to grow in coming years

AAP logoAAP 14/12/2016

The annual cost to the federal budget of the government's investment in the national broadband network will grow in coming years.

The cost to the budget in 2016/17 is estimated to be about $580 million, a report by the Paliamentary Budget Office released on Wednesday shows.

It is tipped to rise to more than $730 million in 2019/20 and to $2.1 billion by 2026/27.

The PBO said the final cost of the government's financing of NBN Co won't be known until it is privatised and the market decides on a value.

Until then, the commonwealth will continue to bear an annual cost.

"If the sale price of NBN Co is less than the commonwealth's cumulative cost of financing NBN Co, then the NBN would have an enduring cost to the budget," it said.

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