Victoria keeps its AA credit rating despite warnings over project costs
S&P Global said on Wednesday that it had reaffirmed Victoria's AA rating as it expected the state's infrastructure spending to peak this financial year and large deficits to narrow over the next two to three years.
S&P's outlook remained stable, meaning it believes the rating is more likely to stay at this position than to worsen.
'We expect Victoria to realise small operating surpluses over the next three years,' it said in a statement.
The ratings agency said the Allan government was taking steps to saves costs and would benefit from increased GST revenue and tax receipts. S&P also said the state would receive extra funding through its rebranded fire services levy and expanded congestion charge, which was 'supporting an improving operating position from a very weak base'.
'We expect the government to show fiscal restraint ahead of the 2026 election, which should keep its operating balance in surplus,' it said. 'Victoria's economy is wealthy, well-diversified, and fundamentally sound.'
Net debt in Victoria is forecast to hit $194 billion in four years' time.
S&P said Victoria's commitment to control costs and slow debt growth was important to rebuild the financial protections that had been lost during the COVID-19 pandemic. But it noted that doing this had previously been difficult for the government.
'The state tends to spend all unexpected revenue gains that it receives and has struggled to implement previous savings targets including workforce reductions,' the agency said. 'We believe strong governance and the quality of Victoria's major investment decisions are important for the government's fiscal credentials and our credit rating on the state.'
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Trinity Point expansion approved after five-year wait
The largest development project outside of Sydney is one step closer to being built after a protected development application - five years in consideration - was approved on Friday. The $665-million expansion of the Trinity Point precinct at Lake Macquarie has been sold as "Australia's leading waterfront destination" and Lake Macquarie's answer to the Sydney Opera House, but has been mired in planning red tape for the past five years. Johnson Property Group founder Kieth Johnson, who has held the site for 25 years, said it was a relief to see approvals finally secured after a years-long wait that left investors in uncertainty. "We have had investors and potential joint venture partners wanting to talk to us, but we couldn't do a thing," Mr Johnson said. "We had nothing to guarantee until (Friday, August 1)." "Unfortunately NSW is the slowest state in Australia to get approvals." The luxury waterfront project will bring a resort experience to the shores of Lake Macquarie, complete with a cutting-edge wellness centre and two world-class restaurants, as well as 160 waterfront apartments, conference facilities, and commercial and public space in a sprawling precinct designed by boundary-pushing architect firm Koichi Takada. Mr Johnson, who is the same developer behind Lake Macquarie's Watagan Park project, said the project was aimed at city-siders looking to escape to the regions in the post-COVID era, adding that designs had reduced the number of apartments but increased their size to cater to changing market tastes. "People want to move to the country. They want to move, but they want bigger units," he said. "It's a really luxurious lifestyle." He now hopes that, with development approvals secured, the project will move to detail designs and ultimately to tender within the next year. He estimated it would be a three-year build after that. "This project is about putting Lake Macquarie on the global stage," Mr Johnson said. "We're not just building something beautiful we're creating a destination that will showcase the best of this region to the world and leave a lasting legacy for generations to come." An earlier planning document indicated the project would create 398 jobs and some $15.8 million in salaries. The largest development project outside of Sydney is one step closer to being built after a protected development application - five years in consideration - was approved on Friday. The $665-million expansion of the Trinity Point precinct at Lake Macquarie has been sold as "Australia's leading waterfront destination" and Lake Macquarie's answer to the Sydney Opera House, but has been mired in planning red tape for the past five years. 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Mr Johnson, who is the same developer behind Lake Macquarie's Watagan Park project, said the project was aimed at city-siders looking to escape to the regions in the post-COVID era, adding that designs had reduced the number of apartments but increased their size to cater to changing market tastes. "People want to move to the country. They want to move, but they want bigger units," he said. "It's a really luxurious lifestyle." He now hopes that, with development approvals secured, the project will move to detail designs and ultimately to tender within the next year. He estimated it would be a three-year build after that. "This project is about putting Lake Macquarie on the global stage," Mr Johnson said. "We're not just building something beautiful we're creating a destination that will showcase the best of this region to the world and leave a lasting legacy for generations to come." An earlier planning document indicated the project would create 398 jobs and some $15.8 million in salaries. The largest development project outside of Sydney is one step closer to being built after a protected development application - five years in consideration - was approved on Friday. The $665-million expansion of the Trinity Point precinct at Lake Macquarie has been sold as "Australia's leading waterfront destination" and Lake Macquarie's answer to the Sydney Opera House, but has been mired in planning red tape for the past five years. Johnson Property Group founder Kieth Johnson, who has held the site for 25 years, said it was a relief to see approvals finally secured after a years-long wait that left investors in uncertainty. "We have had investors and potential joint venture partners wanting to talk to us, but we couldn't do a thing," Mr Johnson said. "We had nothing to guarantee until (Friday, August 1)." "Unfortunately NSW is the slowest state in Australia to get approvals." The luxury waterfront project will bring a resort experience to the shores of Lake Macquarie, complete with a cutting-edge wellness centre and two world-class restaurants, as well as 160 waterfront apartments, conference facilities, and commercial and public space in a sprawling precinct designed by boundary-pushing architect firm Koichi Takada. Mr Johnson, who is the same developer behind Lake Macquarie's Watagan Park project, said the project was aimed at city-siders looking to escape to the regions in the post-COVID era, adding that designs had reduced the number of apartments but increased their size to cater to changing market tastes. "People want to move to the country. They want to move, but they want bigger units," he said. "It's a really luxurious lifestyle." He now hopes that, with development approvals secured, the project will move to detail designs and ultimately to tender within the next year. He estimated it would be a three-year build after that. "This project is about putting Lake Macquarie on the global stage," Mr Johnson said. "We're not just building something beautiful we're creating a destination that will showcase the best of this region to the world and leave a lasting legacy for generations to come." An earlier planning document indicated the project would create 398 jobs and some $15.8 million in salaries. The largest development project outside of Sydney is one step closer to being built after a protected development application - five years in consideration - was approved on Friday. The $665-million expansion of the Trinity Point precinct at Lake Macquarie has been sold as "Australia's leading waterfront destination" and Lake Macquarie's answer to the Sydney Opera House, but has been mired in planning red tape for the past five years. Johnson Property Group founder Kieth Johnson, who has held the site for 25 years, said it was a relief to see approvals finally secured after a years-long wait that left investors in uncertainty. "We have had investors and potential joint venture partners wanting to talk to us, but we couldn't do a thing," Mr Johnson said. "We had nothing to guarantee until (Friday, August 1)." "Unfortunately NSW is the slowest state in Australia to get approvals." The luxury waterfront project will bring a resort experience to the shores of Lake Macquarie, complete with a cutting-edge wellness centre and two world-class restaurants, as well as 160 waterfront apartments, conference facilities, and commercial and public space in a sprawling precinct designed by boundary-pushing architect firm Koichi Takada. Mr Johnson, who is the same developer behind Lake Macquarie's Watagan Park project, said the project was aimed at city-siders looking to escape to the regions in the post-COVID era, adding that designs had reduced the number of apartments but increased their size to cater to changing market tastes. "People want to move to the country. They want to move, but they want bigger units," he said. "It's a really luxurious lifestyle." He now hopes that, with development approvals secured, the project will move to detail designs and ultimately to tender within the next year. He estimated it would be a three-year build after that. "This project is about putting Lake Macquarie on the global stage," Mr Johnson said. "We're not just building something beautiful we're creating a destination that will showcase the best of this region to the world and leave a lasting legacy for generations to come." An earlier planning document indicated the project would create 398 jobs and some $15.8 million in salaries.
The Advertiser
an hour ago
- The Advertiser
Markets plummet as Trump issues more steep tariffs
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"No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative." US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative." US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative." US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative."
Perth Now
4 hours ago
- Perth Now
Markets plummet as Trump issues more steep tariffs
US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative."
