Shadow treasurer Angus Taylor has criticised the prime minister for “attacking” S&P Global following the release of a report yesterday that suggested Australia’s AAA rating was at risk from both major parties’ election spending commitments.
In a post on X last night, Taylor said it was “extraordinary to see the PM attacking S&P Global because he can’t manage the budget. Mocking the ratings agency shows he’s not fit to lead – and Australia can’t afford another three years of Labor”.
In a statement yesterday, S&P said sound budget management had underpinned Australia’s AAA rating for years. But the agency believes growing risks to the global economy, plus the use by both parties of off-budget commitments to meet their spending pledges, was putting the budget at risk.
“The budget is already regressing to moderate deficits as public spending hits postwar highs, global trade tensions intensify and growth slows,” it said, “how the elected government funds its campaign pledges and rising spending will be crucial for maintaining the rating.”
On last night’s 7.30 on the ABC, Prime Minister Anthony Albanese said off-budget commitments were used because they “can only be off-budget if essentially it’s going to produce a profit for the government”.
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When asked why the Whyalla Steelworks and the NBN were marked as off-budget despite not being profitable, Albanese said “they will be, and Finance has to make that assessment that you get a return in order for it to be off-budget”.
Albanese used questions on the warning from S&P to swing back at the opposition, saying: “the AAA credit rating is there … [S&P] must have been beside themselves, whoever wrote that particular report, when the Coalition left us with a $78 billion deficit. We turned that into a $22 billion surplus. We followed that up with a $15 billion surplus.”
The prime minister went on to criticise the Coalition’s spending proposals before host Sarah Ferguson said those claims could be put to the opposition leader. Albanese replied: “Good luck getting Peter Dutton on the show, given that yesterday he described the ABC as the ‘hate media’.”
With Shane Wright
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