The international ratings agency Moody’s has reaffirmed Australia’s AAA credit rating.
This is another welcome endorsement of the Government’s responsible economic management.
The Moody’s report says, “debt ratios at the Commonwealth level remain low”.
It found the Government’s fiscal policy has been “adaptive, reflected in the consolidation of pandemic‑era deficits into nearly balanced budgets over a short span of time.”
Moody’s says the Government’s fiscal strategy is, “supported by expenditure reforms and a record of conservative budgeting.”
This is just the latest ratings agency to endorse our economic management with S&P Global also reaffirming our AAA credit rating this month.
Australia is not immune from uncertainty and volatility in the global economy, but we are well placed to confront these challenges.
Moody’s specifically calls out our ambitious tax reforms, saying, “the Government has continued advancing major tax and spending reforms despite a more challenging economic backdrop.”
We have faster growth than almost every major advanced economy, low unemployment, solid wage growth and stronger public finances than most advanced economies.
Moody’s says: “Despite facing successive shocks in recent years, Australia’s economy has maintained a relatively stable growth trajectory compared with other advanced economies.”
In an acknowledgement of the importance of the superannuation system built by Labor, Moody’s says: “fiscal strength is further supported by substantial private retirement savings under superannuation funds”.
Labor built the superannuation system and we will always defend it. The Liberals, Nationals and One Nation want to destroy it and would undermine Australia’s economic resilience as well as the secure retirement of Australian workers.
Australia remains one of only nine countries with a AAA sovereign credit rating from all three major ratings agencies.
When we came to government, we inherited bigger deficits and a trillion dollars of debt.
Gross debt at the end of last financial year was $10.6 billion lower than forecast in the recent Budget and almost $200 billion better than it would have been under the Coalition.
We’ve made substantial progress when it comes to the budget and we’re taking decisive action to address some of the biggest spending pressures, which this report acknowledges.
Political opportunists and vested interests like to talk down our economy and our budget, but this report reflects the progress Australians have made together and the importance of our ambitious agenda.
We’re delivering responsible economic management and permanent cost of living relief like new tax cuts for Australian workers, at the same time as we make our economy more productive and resilient.
