Former Queensland Premier Campbell Newman has sharply criticized the state’s Liberal National Party (LNP) government under leader David Crisafulli for what he described as “appalling” financial management following a recent credit rating downgrade.
On Friday, ratings agency S&P downgraded Queensland’s credit rating from AA+ to AA with a stable outlook, marking the state’s first such downgrade since 2009. The agency cited concerns about the state's increasing operating costs, which have grown about 10 percent annually over the past three years amid declining coal royalties and goods and services tax revenue.
Newman, who led Queensland from 2012 to 2015 and pursued significant budget repair measures at the time, linked the downgrade to ongoing government spending beyond the state's means. “It is a sad state of affairs when an LNP government, on the right of politics, turns in a result like this,” Newman said. He argued that the situation reflected poorly on the party and played into narratives that have fueled support for populist groups like One Nation.
The former premier also expressed dismay at the current LNP government’s response to the downgrade. Treasurer David Janetzki has signaled that the government will maintain its existing spending trajectory, despite the rating agency’s warning. Newman described this stance as “almost defiant” and voiced concern that the government was unwilling to take corrective action.
A point of contention for Newman is the LNP’s commitment to uphold all spending commitments made by the incumbent Labor government ahead of the 2024 state election without reviewing the budget. He called this approach “poll-driven” and warned it was short-sighted. Newman noted that several former LNP ministers, including Crisafulli himself, had supported fiscal discipline while serving in his cabinet during previous budget cuts that included removing approximately 14,000 public service jobs to reduce debt.
Newman also criticized the government's approach to infrastructure spending ahead of the 2032 Brisbane Olympics. He highlighted plans for new sports venues, such as a national aquatic centre and a 63,000-seat stadium at Victoria Park, arguing these contradicted earlier promises of a leaner Games that would reuse existing venues from the 2018 Commonwealth Games. “They’ve thrown caution to the wind,” he said, framing the projects as evidence of financial mismanagement.
Crisafulli did not respond directly to questions regarding the rising debt servicing costs or the decision to adopt Labor’s budget without scrutiny. A spokesperson for the Premier emphasized the government’s intention to return the budget to surplus by 2026-27 and to continue delivering infrastructure and services necessary for Queenslanders, attributing Queensland’s current financial challenges to “a decade of fiscal mismanagement under Labor.”
Newman, who left the LNP in 2021 and now affiliates with the Libertarian Party, concluded that neither major party currently demonstrates a commitment to responsible fiscal management in Queensland, a situation he predicts will have negative consequences for the state’s financial future.