International ratings agency S&P Global has just re‑affirmed Australia’s AAA credit rating.
This is a powerful endorsement of the Government’s responsible economic and fiscal management at a time of extreme global uncertainty.
S&P says “Australia’s fiscal performance is sound” and “Australia has modest public debt by international standards.”
S&P specifically calls out the Government’s ambitious tax and savings reforms for helping improve Australia’s fiscal position over the next decade.
Responsible economic management is the hallmark of the Albanese Labor Government and S&P’s report reinforces that.
S&P says Australia’s rating benefits from “strong institutional settings and sound fiscal metrics.”
Fiscal discipline is even more important at a time of heightened global uncertainty, and that’s exactly what we’re delivering.
Our responsible approach of finding savings and reprioritisations, spending restraint and banking all revenue upgrades has delivered one of the strongest budgets in the developed world.
Australia remains one of only nine countries with a AAA sovereign credit rating from all three major ratings agencies and has lower gross debt than every major advanced economy.
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.
While we’ve delivered a substantial budget improvement, we recognise that structural pressures are intensifying rather than easing and that’s why we’re taking decisive action to address some of the biggest spending pressures on the budget.
Australia is not immune from uncertainty and volatility in the global economy, including as a result of conflict in the Middle East.
S&P’s report praises the Albanese Government’s success in shoring up our fuel security.
We are well placed and well prepared to confront global challenges with faster growth than almost every major advanced economy, low unemployment, solid wage growth and stronger public finances than most advanced economies.
There are people who will always try to talk down our economy and budget, but this report is a reminder we have one of the strongest budget positions in the world.
We’ve made real progress on the budget at the same time as we’re providing responsible and permanent cost of living relief like new tax cuts for Australian workers, taking important steps to make the economy more productive, and funding the services Australians rely on.
