Treasurer Josh Frydenberg has cleared up how the coronavirus debt, which could reportedly reach $1 trillion, will be paid back.

There are fears taxes will be raised to pay off the billions spent to keep Australia afloat during the coronavirus crisis.

Labor leader Anthony Albanese has said it’s “a bill that will saddle a generation”.

But Mr Frydenberg says there’s another way the money could be paid back.

“It will take years but the way to pay off such a new level of debt back is not through higher taxes which will reduce aspiration in investment.

“It will be through growing the economy. That’s why infrastructure spending, cutting red tape, tax and industrial relations reform and focusing on skills and education are going to be so important in the future.”

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