The ACT’s public servants have been commended for their professionalism and independence in a report on the Territory’s latest economic management success.
Welcoming the report from credit rating agency Standard and Poor (S&P), Chief Minister Andrew Barr said the Territory received a ‘AAA/A-1+’ rating, the highest possible credit rating.
Mr Barr said that in issuing its verdict, S&P said the rating reflected the ACT’s “excellent financial management; very high-income economy, which is closely linked to the stable public sector; and exceptional liquidity”.
“The ACT’s economic fundamentals remain very strong,” S&P also said:
“The Territory has a very high-income economy,” it said.
“The Territory historically has Australia’s most resilient labour market, with unemployment tracking 1-2 percentage points lower than the national average in the past half decade.”
S&P said the ACT’s economic growth prospects were solid and it viewed the Territory’s financial management positively.
“The Territory has a professional and independent public service, and prudent debt management,” the credit rating agency said.
“The Territory also has a credible plan to eliminate its unfunded superannuation liability over time through ongoing appropriations and investment earnings in its superannuation provision account.”
It said the ACT’s 20-year tax reform program, which it is half way through, may help to mitigate budgetary volatility.
S&P noted the Territory was less reliant than its domestic peers on conveyancing duties, “which tend to be sensitive to property market volumes and prices”.
“This is because of its tax reform program and because, unlike the Australian States, ACT also functions like a municipal Government and levies general property rates,” it said.
“The Territory also has a credible plan to eliminate its unfunded superannuation liability over time through ongoing appropriations and investment earnings in its superannuation provision account.”
