'Nation-leading' WA budget splurge fired by big surplus
Hip-pocket relief, housing and industry development support have featured heavily in the Western Australian budget, as the state posts another strong budget surplus.
Treasurer Rita Saffioti’s first budget on Thursday delivered a $3.2 billion windfall for the state for the current financial year, with a further $2.6 billion surplus projected for 2024-25.
It’s the state’s sixth consecutive operating surplus but $100 million less than predicted as “headwinds” take their toll on the state’s economy, which Ms Saffioti said was the envy of the nation.
Volatile commodity prices played a part in the lower than expected budget 2023-24 surplus. (Alan Porritt/AAP PHOTOS)
“WA’s economy is well placed to continue to lead the nation,” she told reporters.
“Our business confidence is strong … and we have the wealth and a strong set of finance, to support us into the future.”
The government unveiled a $762 million cost-of-living support package that will provide a $400 electricity credit for households and small businesses, along with payments for families with children at school and airfare caps for regional residents.
More than $1 billion has been allotted to boost the housing supply and support homeless services, with stamp duty exemptions increased to help first-home buyers buying properties that cost less than $600,000.
This includes $400 million to supply more social housing, $144 million for new housing and $92 million to support homeless services across the state.
A further $1.8 billion will be invested to support industry and grow the economy, with $373 million for the state’s ports, $352 million for outdoor adventure tourism infrastructure and $36 million to slash red tape.
This includes $500 million to expand WA’s industrial areas, with new land sites for emerging industries, $200 million for a new critical mineral advanced processing facility, and $472 million to expand the state’s electricity grid and connect more renewable energy.
More than $3 billion will be spent to boost the state’s health system, with $1.2 billion to expand hospital services, $405 million for regional health services and $839 million on additional infrastructure.
The financial blueprint will invest $1.3 billion in education and training, with $410 million to build new schools and $85 million to expand the construction workforce.
Net debt is expected to grow to $28.6 billion at the end of the current financial year, $800 million than forecast, and expand to $40.9 billion over the forward estimates.
WA Treasurer Rita Saffioti says the state is well placed to keep leading the nation. (Richard Wainwright/AAP PHOTOS)
Ms Saffioti said volatile commodity prices and the timing of Commonwealth payments had caused the 2023-24 surplus to be slightly lower than projected.
The state is expected to stay in the black with operating surpluses between $2.5 and $2.8 billion predicted over the next four years.
Economic growth is forecast to be two per cent in the year ahead, with 1.75 per cent expected in 2023-24.
Peak business group, the Chamber of Commerce and Industry WA, criticised the lack of business payroll tax reform.
“This budget is built on a bedrock of iron ore, but for small and family businesses, it’s all glitter and no gold,” chief economist Aaron Morey said.
“Just like households, businesses are drowning in rising costs and there is not enough in this budget to address that.”
The Chamber of Minerals & Energy of WA said the resource sector had been a key contributor to the state’s finances, with royalties accounting for 26.5 per cent of general government revenue.
WEST AUSTRALIAN BUDGET FOR 2024/25
* Surplus: $2.6 billion
* Revenue: $ 46.2 billion
* Expenditure: $ 43.6 billion
* Net debt: $32.7 billion
* GST revenue: $7.3 billion
* Unemployment: 4.0 per cent
* Economic growth: 2.0 per cent