Western Australia Budget wrap: Massive GST windfall fuels $3.5bn budget surplus, new spending

Cost-of-living relief — including a $100 fuel credit for every driver’s licence holder — is on its way for Western Australians as part of a nearly $200m plan to help with rising petrol costs.

It formed part of WA Premier Roger Cook and Treasurer Rita Saffioti’s plans as they handed down their third budget for Western Australia, recording a $3.5bn surplus, bolstered by $9.3bn from GST revenue that will hit the state coffers next year.

The state boasts the “most affordable debt in the nation” that will come in $4bn lower than forecast, reaching $34.5bn by June 30.

The private sector has been praised for driving the state’s success contributing to 86 per cent of Western Australia’s domestic economic growth, which has risen 27 per cent over the past five years.

Premier Roger Cook said Western Australia remained the strongest economy in the nation.

He said this year’s budget was built on simple goals to keep the economy strong and deliver on jobs, health, housing and cost of living relief.

“This budget is important for WA Labor and is an important one for Western Australians,” Premier Roger Cook said.

“This is a responsible budget designed to keep Western Australia strong.

“We are delivering on our commitments to keep Western Australia the strongest economy in the nation and the best place to live, work and raise a family.”

But Opposition Leader Basil Zempilas said the government had the resources but had spent the past decade making the wrong decisions, leaving Western Australians no better off.

“The people of Western Australia are hurting, and nothing that we’ve seen in today’s budget has changed that,” he said.

“To the people of Western Australia in the middle of this cost of living and housing crisis, the $100 fuel smoke screen will do nothing to help the people camped in their cars or on the side of the road.

“It will do nothing to alleviate the stress and pressure that comes on families.”

Mr Zemplias said the $100 fuel credit was nothing compared to the rise in water, electricity and car rego.

“This is a government that has forgotten the here and now, and for all of those people in our community, for all of those people hurting, what changes today? And the answer is very, very little,” he said

“This is not a budget that addresses the absolute fundamental concerns of West Australians who are hurting and buckling under the pressures of our housing crisis and this cost of living and household stress crisis.”

Cost of living

Western Australians will benefit from $1bn in cost of living relief, but a targeted approach will see many households miss out on any financial aid.

For the second year running, West Australian households will not receive a state funded energy rebate after years of power bill contributions post Covid.

Motorists will also miss out on a freeze on fees and pay upwards of 2.5 per cent to renew their driver’s licence and car rego.

Instead, Western Australian driver’s licence holders will benefit from $198m of fuel support payments.

WA drivers will receive a $100 fuel credit from July 1 to help with rising petrol costs.

Families with schoolchildren will benefit from $90m student assistance payments.

Families will receive $150 for each child enrolled in kindergarten or primary school and $250 for every child in high school.

The government has also allocated $70m towards free public transport initiatives.

Students won’t have to pay for travel to and from school, there will be free public transport on Sundays and seniors who travel during off peak times and weekends.

The government estimates the cost of living initiatives will see families with two children receive more than $2000 in assistance.

Housing

First home buyers and front line workers will benefit from billions of dollars being poured into housing schemes, with the state government promising thousands of new homes across Perth and regional Western Australia.

The government will invest $4.7bn into the housing sector to unlock land and support more housing across the state.

More than $1bn will be spent to develop land, power, water and other infrastructure.

The federal and state governments have set aside $2bn to build 34,000 new homes, including 11,000 for first home buyers near metro stations, in new residential and regional areas.

Nurses, police and teachers in Bunbury, Kalgoorlie, Karratha, Port Headland, Broome, Geraldton and Albany are set to benefit from a $692m investment in regional housing initiatives that promises 500 new homes over the next four years.

Additional government funding will be directed to the seven regional areas to support infrastructure and job-creating projects, health and essential services.

A $297m housing tax package will support first home buyers by increasing the stamp duty concession from $500,000 to $600,000, with concessions available for homes up to $800,000.

This means first home buyers will not pay stamp duty on homes up to $600,000 or on vacant land up to $450,000.

The First Home Owner Grant property cap for $10,000 (FHOG) will also increase from $750,000 to $800,000.

There are currently less than 320 homes for sale in Perth under $600,000 and 52 blocks of vacant land selling for $450,000 or less.

But the government believes the initiatives will help about 25,000 first home buyers.

Social and affordable homes will also be boosted with $1.5bn in funding to deliver thousands of affordable rentals and social homes.

The State Government has committed to building 1426 new dwellings in partnership with the Commonwealth through the Housing Australia Future Fund.

Another $452m has been allocated to an 165 social homes and refurbishment of 215 homes, as well as land acquisition for future social housing builds and increased investment in maintenance.

Health

The government is making a record investment of $9bn into health over the next four years.

Billions will be spent on building and acquiring new hospitals, adding hundreds more beds and boosting capacity in the public health system.

The funding will deliver a Perth-based cancer facility similar to centres in Sydney and Melbourne that integrate treatment, research and clinical trials.

The Building Hospitals Fund will receive an additional $500m taking the total amount of investment to $2bn in 2026-27 and $5.5bn over the next four years.

Despite the state’s economic success 1500 government workers will be axed and are expected to go from back office functions.

Treasurer Rita Saffioti said there were shifting priorities and the government needed the ability to reinvest in areas that mattered.

She said her focus was on supporting the Western Australian community and ensuring small businesses still had customers walking through the door.

“We considered all factors and tried to get the balance right,” she said.

“You can always do more, and there are people who want more, but we’ve done our best to support families.”