As the U.S. government shutdown looked set to move into its 15th day on Tuesday, Australian Treasurer Joe Hockey told CNBC the situation had taught his country a lesson on how not to handle domestic problems.
"There's a salient lesson here for the rest of the world in what's happening in the U.S. The world must live within its means and you cannot wait until five minutes to midnight to deal with the massive debt burden left by previous generations," said Hockey.
"Ultimately it comes down to a lesson for us in Australia [that] you cannot allow your domestic economy to get to this position," he added.
(Read More: Debt default damage already unfolding)
U.S. politicians have been stuck in a gridlock over deciding the new federal budget, which led the government to shut down two weeks ago. With the deadline for raising the government's debt ceiling only three days away, fears over a debt default have reached fever pitch. Some of the world's top bankers, along with the International Monetary Fund have all sounded warnings over the risk of a default, in recent weeks.
The Australian Treasurer described the possibility of a U.S. debt default as "almost inconceivable" but said if it did happen, it would undoubtedly affect the global economy. He added that he was concerned the shutdown might set a precedent for how disputes are dealt with in future.
"The question is: how are they [Congress] going to ensure that this extraordinary period of uncertainty does not become the norm for the rest of the Obama administration's term in office? That's the big issue," he added.
(Read More: If US defaults,will China bail on Treasurys?)