Labor has announced its own raid on the public sector to help pay for a $7.2 billion blowout in pre-election promises, amid a warning by Standard & Poor’s that Australia’s AAA credit rating may be at risk if debt and deficit worsen.

Shadow treasurer Angus Taylor, who will release his policy costings this week promising a stronger bottom line, revealed that if elected, the Coalition would hand down a mini-budget in the second half of next year, focused further on budget repair.