Australian Treasurer Jim Chalmers has dismissed concerns that election spending promises could jeopardize Australia’s coveted AAA credit rating. Earlier on Monday, S&P Global Ratings warned that campaign pledges ahead of the May 3 general election could pose risks if they led to larger structural deficits.
Speaking at a press conference, Chalmers emphasized that the A$10 billion ($6.39 billion) in new commitments by Prime Minister Anthony Albanese’s centre-left Labor party had been "more than offset" by budget improvements. "If the ratings agencies are worried about spending and off-budget funds, we have shown we can find the room for our commitments," Chalmers said. "We take their views seriously and are managing the budget responsibly."
Government-released costings revealed that the budget’s bottom line would be A$1 billion stronger over four years. The funding plan includes A$6.4 billion in savings and reprioritizations, such as cutting consultant usage, along with an additional A$760 million from higher student visa fees. Key spending commitments include cost-of-living relief, the construction of 100,000 new homes, and expanded access to affordable healthcare.
Chalmers reiterated that election promises would be fully offset in every year of the forward estimates, maintaining fiscal discipline.
Meanwhile, the latest Newspoll showed Labor holding a four-point lead over the conservative Liberal-National coalition after preferences were distributed, underscoring the importance of Australia’s preferential voting system.
The Albanese government continues to highlight responsible budget management as it seeks to reassure both voters and financial markets ahead of the crucial election.