Statement from the Treasurer regarding S&P Global Ratings

From the moment the Crisafulli Government was elected, I warned Queensland had inherited an inevitable credit rating downgrade after a decade of Labor’s fiscal vandalism.

Today’s decision by S&P Global Ratings and their rationale confirms what we’ve been warning is true.

The path to this downgrade was laid by Labor and Cameron Dick and it was set in stone by Jim Chalmers.

S&P’s rationale confirms it.

Queensland’s budget performance score was cut in September 2024 following Labor’s final Budget, before the State was placed on a negative outlook in January 2025 when our first MYFER exposed the full extent of Labor’s debt, deficits and deception.

This downgrade was baked into the books over the past 10 years.

As such, financial market commentary suggests ratings risk has largely already been taken into account in market pricing.

S&P’s rationale released today clearly states that the increases in operating expenses that contributed to this downgrade were incurred by the former Labor Government.

S&P also credited Queensland’s massive infrastructure pipeline – “major transportation projects, energy projects, hospital upgrades, and infrastructure for the 2032 Olympics and Paralympic Games” – as contributing to the downgrade.

These are the projects that Labor failed to budget for and failed to deliver.

The challenge of the new Queensland Government is correcting Labor’s decade of decline and delivering these critical projects for our growing State.

More recently, as S&P stated: “Property tax changes by the Australian government in its May Budget will also hit Queensland’s stamp duties” and “the deterioration in Queensland’s budgetary outcomes in recent years was due to a sharp rise in recurring operating expenses, and receding mining royalties and goods and services (GST) receipts.”

In black and white facts, Canberra has contributed to this downgrade.

Our focus is on returning the Budget to surplus and delivering the infrastructure projects and services Queenslanders need.

S&P stated we have softened the landing, meaning “deficits after capital accounts may peak slightly lower than we previously expected”.

This proves we have already delivered budget improvements in the past two years with improving deficits and a forecast surplus in 2029/30, lower debt and no new or increased taxes.

Queensland will continue to fight for its fair share of GST, call out billions of dollars in Federal Labor cost-shifting on the NDIS, natural disasters and stranded Australians, and hold Jim Chalmers accountable for a broken-promises Budget that has smashed Queensland’s stamp duty revenues.

We also await Moody’s decision and note their recognition of the Government’s “gradual fiscal consolidation” in recent commentary.

Although S&P would have preferred Queensland to raise taxes, reduce services and stop building, those are decisions we are not willing to make.

We will continue to invest in front-line jobs and services, support Queenslanders doing it tough in a national affordability crisis and build roads, rail, hospitals, schools and housing to support a growing population as we move towards the 2032 Games and beyond.

Queensland will continue to benefit from a large and growing economy, deep investor support with recent bond issuances attracting broad participation from domestic and international investors and prudent debt management through Queensland Treasury Corporation.

ENDS

MEDIA CONTACT: Charlie Peel 0486 186 007