Overview
- Reporting says S&P is expected to move Queensland from AA+ to AA soon but the agency has not confirmed a decision and timing remains unverified.
- Queensland's budget projects total debt will top about $216 billion by 2029–30 and interest costs will rise from $6.83 billion this year to almost $11 billion by 2029–30.
- Analysts cite a fall in stamp duty revenue from weaker home sales, higher bond yields, the changing GST distribution and unchecked spending as the main drivers of the fiscal strain.
- Federal Treasurer Jim Chalmers publicly warned of the state's deteriorating finances in parliament and Queensland Treasurer David Janetzki blamed federal budget measures and previous state Labor decisions.
- S&P declined to comment on the reports and a downgrade would likely push up Queensland's borrowing costs, squeeze funding for services and projects and force choices between higher taxes or larger deficits.