Fitch backs budget, Hockey says

Treasurer Joe Hockey has told parliament that Fitch Ratings has backed his first federal budget.

Finally, Joe Hockey could tell parliament about someone who supported his budget strategy.

The federal treasurer left it a bit late, but at the end of question time on Thursday he revealed that one of the world's biggest credit rating agencies had given his first budget a tick of approval.

Fitch Ratings has confirmed Australia's triple-A credit rating, saying the 2014/15 budget reinforces the nation's strong public finances and credible policy framework.

"It is positive for Australia's long-term sovereign risk profile," Mr Hockey quoted from the report.

The report backs the government's structural reforms, which include increasing the pension age to 70 by 2035 and indexing it to inflation, reintroducing indexation of the petrol excise, introducing a Medicare co-payment, and tightening the requirements for unemployment and family tax benefits.

"We believe that the budget plan is realistic and achievable," Fitch says.

But it also recognises the political risks, citing the need for Senate approval.

"However, we do not believe that these pose a substantive challenge to the core elements of the plan," it says.

Other major credit agencies, Moody's and Standard & Poor's, confirmed Australia's triple-A ratings earlier in the week.


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Source: AAP


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