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February 4, 2026 — 7:39pm
Queensland Premier David Crisafulli has sought to blame the former government for a possible credit rating hit in future, despite new analysis noting his own actions will be crucial to avoiding one.
Ratings agency S&P Global decided against downgrading the state’s AA+ rating – which would have increased repayment costs on already growing debt – in its latest update late on Tuesday.
Crisafulli said some commentary since the change of government had suggested an “air of inevitability” about an eventual downgrade, that “that was the trajectory that we’re on”.
“You can ask the previous government around that, particularly some of the ill discipline around projects. That’s the reason we’re in the situation we are – but we are turning the corner,” he said.
The state government’s December budget update revealed its operating balance had fallen almost $400 million further into deficit for the current financial year.
Total government debt is forecast to hit $204.9 billion by 2029, compared with $146.9 billion this financial year. Net debt is now expected to end the financial year at $87.7 billion.
S&P said despite strong financial management and lower debt than most Australian states, heavy infrastructure spending could weaken Queensland’s budget performance over the next two years.
Noting the government had already cancelled and adjusted some projects, and was aiming to boost construction productivity to contain costs, S&P highlighted other promised efforts to cut costs.
Success with measures to stop growth in the public service, reduce consulting costs, and find savings in procurement “will be crucial to maintaining our AA+ credit rating on the state”, it said.
“The current government, which has been in power for 15 months, has maintained a fiscal strategy largely consistent with the previous government.”
The Crisafulli government came to power promising to save $6.8 billion on consultants and contractors in its term to help pay for election promises and rein in spending.
But it has since run $1 billion over its planned $3 billion cap for the 2024-25 financial year, and is no longer reiterating its commitment to a lower limit of $2.5 billion this year or the two years after that.
Asked on Wednesday if the government was still committed to implementing the caps, Crisafulli would not say, instead reiterating budget paper suggestions that there had been savings.
Opposition Leader Steven Miles said: “This further advice that Queensland could experience a rating downgrade, it sits squarely on the lap of [Treasurer] David Janetzki”.
Economists have said the government would be forced to break an election promise by either slashing the public service or imposing higher taxes on Queenslanders to control spiralling debt.
Janetzki last week insisted the government would stick to its pledges.
Speaking on Wednesday at a former Youth Justice Department site, Crisafulli had a suite of related updates to share.
The building would be the first confirmed location for one of the government’s planned youth justice schools run by Ohana for Youth from the start of 2027.
Police data showed crime victim numbers for 2025 had fallen by 7.2 per cent, he said. And a third, so far undecided, tranche of updates to “adult crime, adult time” laws would land by April.
Crisafulli also confirmed that, while not featuring in changes to electoral laws currently before parliament, he still intended to change state voting to an optional preferential system for 2028.
He said it would have been “in my political interests” for the recent Hinchinbrook byelection – in which the LNP won back the seat – to have been carried out under the new system.
“But we didn’t do it,” Crisafulli said, as he believed MPs elected to serve in this parliament under the compulsory preferential system should be replaced in the same way at any byelection.
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