You are using an older browser version. Please use a supported version for the best MSN experience.

Morrison says AAA rating needs budget cuts

AAP logoAAP 16/08/2016

The federal government has used the decision of a second ratings agency to confirm Australia's triple-A ratings to increase pressure on Labor to pass its budget savings.

Treasurer Scott Morrison noted the Moody's decision on Wednesday cited risks to its fiscal consolidation plans, which are aimed at saving $6.5 billion.

"Support in the parliament to implement the Turnbull government's economic plan for jobs and growth, to avoid higher debt and reduce the deficit is necessary to support maintaining our triple-A rating," he said.

Mr Morrison later said the Australian economy was resilient and strong.

"But there is no doubt that there is more work to be done with the challenges that are ahead," he told reporters in Melbourne.

"As welcome as this result is today, and it is, we cannot take these things for granted going forward."

The performance of the economy - which provided jobs and supports the important services in health and education - depended on the government, parliament and people working together.

"Unfortunately, I haven't had too much success convincing the shadow treasurer and the Labor Party of partnering in the task of fiscal reform," Mr Morrison said.

image beaconimage beaconimage beacon