20 September 2023

Australia has today received a resounding endorsement of its responsible economic and budget management.

Australia's economic management receives strong endorsement

Australia has today received a resounding endorsement of its responsible economic and budget management.

Standard & Poor’s upgraded a key fiscal assessment metric to the top level and affirmed Australia’s triple A credit rating. Both fiscal assessment indicators are now at the highest level.

“The improvement in fiscal outcomes is a key factor in our AAA ratings because it will reduce the Government's annual borrowing needs and provide a buffer to absorb future economic shocks,” S&P said in a statement.

S&P has delivered its strong backing of the Albanese Government’s economic strategy at a time of heightened global uncertainty.

The improved budget outcome is being driven by “robust economic conditions” including the strong labour market, the international ratings agency said.

The Government’s Final Budget Outcome for 2022‑23, scheduled for release this month, will confirm the Albanese Government has delivered the first surplus in 15 years.

Our responsible budget management means lower deficits, less debt and savings on interest costs.

Across our first two budgets we are returning 87 per cent of tax upgrades to the bottom line. This is more than double the previous government’s average of around 40 per cent.

We have also found $40 billion in savings and spending reprioritisations across two budgets, compared to zero savings in the last budget of our predecessors.

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 economic fundamentals and governance enable Australia to access funds at low rates on global markets.

S&P has also strongly endorsed Australia’s work to renew and revitalise key economic institutions, including the Reserve Bank of Australia.

“The implementation of recommendations following a RBA review will strengthen governance and transparency standards,” S&P said.

The report by S&P is another reminder that the Albanese Government’s responsible budget management is improving the strength and sustainability of the nation’s finances and building stronger foundations for a better future.