Australia’s AAA credit rating reaffirmed following MYEFO

Australian Treasury

International ratings agency S&P has once again reaffirmed Australia’s AAA credit rating, joining the growing group of respected voices endorsing the Government’s responsible economic management.

S&P has praised our strong budget outcomes and endorsed the Government’s budget strategy.

“Strong fiscal outcomes are a key factor in our ‘AAA’ ratings because they reduce the government’s annual borrowing needs and provide a buffer for future economic shock,” S&P said in a statement.

The report makes it clear that despite the challenges confronting us, our Government is doing better than other countries’ when it comes to budget repair to help insulate ourselves against global uncertainty.

“The government has shown ability and willingness to implement reforms to ensure sustainable finances and economic growth, ” the S&P report said.

Our responsible budget management means less debt, lower deficits and billions in interest costs saved.

Across two budgets and a MYEFO we have returned 88 per cent of revenue upgrades, compared to 40 per cent under the former Government. We have found almost $50 billion in savings and reprioritisations since coming to Government.

By returning the majority of revenue upgrades to the Budget, we are projected to save about $145 billion in interest costs over the medium term.

The report comes on the back of recent endorsements of our fiscal strategy from the IMF, OECD, RBA, Fitch and others.

Australia is one of only nine countries to be rated AAA by all three major credit rating agencies and this was achieved for the first time under the last Labor Government. Our strong credit rating means Australia can access funds at lower rates.

We are realistic about the challenges facing our economy, including high but moderating inflation, higher interest rates and global uncertainty, all of which are impacting growth, but our AAA rating is further proof Australia is coming at these challenges from a position of genuine economic strength.

Wages are growing at their fastest pace in nearly 15 years, with two consecutive quarters of real wage growth, we’ve overseen the creation of 650,000 jobs and because of our efforts the budget is in much better nick.

The report by S&P is another reminder that the Albanese Government’s responsible economic management is improving the strength and sustainability of our national finances and laying the foundations for a better future.

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