The Albanese Government’s responsible Budget has been endorsed by Fitch Ratings, which has affirmed Australia’s triple‑A credit rating.
The international ratings agency applauded the Government’s spending restraint and said the nation’s public finances had outperformed expectations.
“The commitment in the Budget to save most of the revenue windfalls over the five‑year budget horizon signals a commitment to prudent fiscal management,” Fitch said in a statement.
In addition, Fitch highlighted the Government’s efforts to address the structural pressures on the Budget, including through our responsible revenue measures.
This is a resounding endorsement of the Albanese Government’s economic and fiscal strategy.
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 effort of around 40 per cent.
By returning the majority of revenue upgrades to the Budget, we are projected to save about $83 billion in interest costs over the 12 years to 2033‑34.
The Budget is forecast to return to surplus in 2022–23 before most of the major advanced economies.
The Albanese Government has been able to deliver a stronger fiscal position, while providing cost‑of‑living relief to Australian families, investing in skills and growth, and funding the services Australians rely on.
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 high credit rating allows Australia to access funds at lower rates.
The report by Fitch is another reminder that the Albanese Government’s responsible Budget is improving the strength and sustainability of the nation’s finances and building stronger foundations for a better future.