Australia's AAA Credit Rating Retained as Tax Reforms Boost Fiscal Outlook

S&P Global reaffirmed Australia’s triple‑A sovereign credit rating, noting that recent tax reforms and spending cuts have strengthened the federal budget. The agency highlighted higher taxes on property investors, changes to negative gearing, capital‑gains tax and trusts, as well as projected savings from the National Disability Insurance Scheme, which together are expected to raise more than $80 billion in revenue and save up to $230 billion over the next decade. Despite a widening deficit of AU$31.5 billion and net debt projected at AU$616.6 billion, S&P said Australia’s debt level remains modest and its fiscal metrics solid. Treasurer Jim Chalmers called the rating reaffirmation a “powerful endorsement” of the government’s fiscal management. The agency also warned that consumer spending may contract as interest rates stay high, potentially slowing economic growth in the 2026/27 financial year.