australia's credit rating

Australia’s Top Tier Credit Rating in Doubt

Everyone wants a tax cut.

Small businesses. Big businesses. Bank executives. Tradies. Everyone.

And for good reason. We all pay a lot of taxes.

Unfortunately, no one wants a benefit cut. At least not one that affects them.

Therein lies the big problem for government. And the reason Australia’s federal government finds itself more than half a trillion dollars in debt.

With that staggering figure likely in the back of his mind, Malcolm Turnbull says a global ratings agency has delivered a ‘timely warning’ on the need to repair the federal budget.

While Standard & Poor’s confirmed Australia’s top-tier triple-A credit rating last week, the global ratings agency also left the outlook on negative.

This reflected S&P’s view of the ‘significant uncertainty’ around the ability of the budget returning to surplus in the early 2020s, as repeatedly promised by the government.

The prime minister said that while setting a path to surplus in 2020/21 was of ‘great credit’ to Treasurer Scott Morrison, the ratings agency had issued a timely warning.

The warning about the challenges of budget repair were very real,’ Mr Turnbull told News Corp’s Miranda Devine Live program on Monday.

We’ve achieved a great deal of budget repair through the Senate but not as much as we would like.’

He said getting the budget back to balance was critical to the size and scope of any personal income tax cuts this year.

We are not going to sacrifice our return to surplus — that is the top priority,’ Mr Turnbull said of the possible middle-income tax cuts.

How much and the timing of it and the scale of it is going to depend on what is affordable, consistent with bringing the budget back into balance.’

The Australian Tribune with AAP

The Australian Tribune with AAP

The Australian Tribune with AAP

Comments: 1

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  1. hello, all I constantly hear is ” We will get the budget in surplus”, hearing this mantra since Swanny blew the money in the bank left by costello and howard, handing out 900 dollar cheques. So when they do finally get it back in surplus, 500 Billion is a lot to pay off, and the pissy amount that they will get the budget back in surplus, it will take about 200 years to pay off the debt they have been happy to accumulate in the last decade, all happened when had the biggest mining boom going around. WHEN will the country be back in the black, never, it will simply not happen as long as these continuous line of political clowns keep getting it wrong. I feel for the future generations, they will never know the life and freedom I have been lucky to live through. they will being paying for our excesses