Federal election 2025: Spendathon risks Australia’s AAA credit rating in rare rebuke

A rare warning from S&P Global has cast doubt on Labor’s economic management claims as their election commitments risk undermining Australia’s AAA credit rating. Treasurer Jim Chalmers highlighted early election costings while challenging the Coalition to disclose cuts affecting essential services; however, S&P cautioned that increasing spending could lead to larger structural deficits and rising debt. The report criticized “off budget” spending practices and noted that combined federal and state deficits are approaching levels unseen since the global financial crisis, raising concerns over fiscal sustainability.

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