This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) April 28, 2025--The 'AAA' rating on Australia may be at risk if election promises result in larger, structural deficits, and debt and interest expenses rising more than we expect. The budget is already regressing to moderate deficits as public spending hits post-war highs, global trade tensions intensify, and growth slows. How the elected government funds its campaign pledges and rising spending will be crucial for maintaining the rating (AAA/Stable/A-1+). Chart 1 Major and minor political parties are making large spending commitments in the lead-up to the federal election on May 3, 2025. These cover cost of living, health, education, energy, and housing. Parties have also announced competing tax
