AS the Turnbull government faces the risk of Australia losing its AAA credit rating, an increase in tobacco excise will reportedly be part of this year’s Federal Budget.
Scott Morrison’s joy of an unexpected drop in the jobless rate will have been quickly dashed by a stark warning that Australia’s triple-A credit rating could be at risk after his first budget.
One of the world’s major credit rating agencies is not happy with what it is hearing from the treasurer just weeks out from the May 3 budget.
Scott Morrison’s joy of an unexpected drop in the jobless rate will have been quickly dashed by a stark warning that Australia’s triple-A credit rating could be at risk after his first budget.
One of the world’s major credit rating agencies is not happy with what it is hearing from the treasurer just weeks out from the May 3 budget.
Moody’s Investors Service notes the treasurer has excluded revenue-raising measures when talking about his budget aims, and given the government’s previous difficulties in reducing welfare benefits, it believes actual spending cuts may be modest.
“Without such measures, limited spending cuts are unlikely to meaningfully advance the government’s aim of balanced finances by the fiscal year ending June 2021 and government debt will likely continue to climb, a credit negative for Australia,” Moody’s says. Read More>
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