Massive GST windfall fuels Western Australia’s $3.5bn budget surplus, new spending

Cost of living reductions are on the way for Western Australians, including a $100 fuel credit for every driver’s license holder, as part of a nearly $200 million plan to help with rising petrol costs.

Forming part of Western Australian Premier Roger Cook and Finance Minister Rita Saffioti’s plans to deliver their third budget for Western Australia, it recorded a $3.5 billion surplus, supported by $9.3 billion from GST revenue coming into state coffers next year.

The state boasts the “nation’s most affordable debt,” which will come in $4 billion below forecasts and reach $34.5 billion by June 30.

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

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

He said this year’s budget is built on simple goals to keep the economy strong and provide assistance with employment, healthcare, housing and living expenses.

“This budget is important for WA Labor and it’s important 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 country and the best place to live, work and raise a family.”

But Opposition Leader Basil Zempilas said the government had the resources but had made poor decisions over the past decade, leaving West Australians no better off.

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

“A $100 fuel smokescreen will do no good to the people of Western Australia in the midst of this cost of living and housing crisis, to people camping in their cars or on the roadside.

“It will do nothing to relieve the stress and pressure on families.”

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

“This is a government that has forgotten the here and now, all the people in our society, all the people who are suffering, what’s changing today? And the answer is very, very little,” he said

“This is not a budget that addresses the absolute fundamental concerns of Western Australians who are suffering and collapsing under the pressures of our housing crisis, cost of living and household stress crisis.”

cost of living

Western Australians will benefit from $1 billion in cost-of-living assistance, but a targeted approach will leave many households without any financial assistance.

Households in Western Australia will not receive a government-funded energy rebate for the second year in a row after years of post-Covid electricity bill contributions.

Drivers will also miss out on the fare freeze and pay up to 2.5 percent to renew their driver’s licenses and vehicle registrations.

Instead, Western Australian license holders will benefit from a $198 million fuel subsidy payment.

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

Families with school children will benefit from $90 million in student aid payments.

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

The government has also allocated $70 million to free public transport initiatives.

Students won’t have to pay for transportation to and from school, public transportation will be free on Sundays, and seniors will travel during off-peak hours and on weekends.

The government estimates cost-of-living initiatives will help families with two children receive more than $2,000.

Housing

Billions of dollars will be poured into housing projects for first home buyers and frontline workers, with the state government promising thousands of new homes across Perth and regional Western Australia.

The government will invest $4.7 billion in the housing sector to open up land and support more housing across the state.

More than $1 billion will be spent on developing land, energy, water and other infrastructure.

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

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

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

The $297 million 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 worth up to $800,000.

This means first home buyers won’t pay stamp duty on homes worth up to $600,000 or vacant land worth up to $450,000.

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

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

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

$1.5 billion in social and affordable homes funding will be provided to provide thousands of affordable rental homes and social homes.

The State Government has committed to building 1,426 new homes in partnership with the Commonwealth through the Australian Housing Future Fund.

A further $452 million was allocated to 165 social homes and the renovation of 215 homes, land acquisition for future social housing construction and increased maintenance investments.

Health

The government will invest a record $9 billion in health over the next four years.

Billions of dollars will be spent building and purchasing new hospitals, adding hundreds of beds and increasing capacity in the public health system.

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

The Building Hospitals Fund will receive a further $500 million, bringing the total investment amount to $2 billion in 2026-27 and $5.5 billion over the next four years.

Despite the state’s economic success, 1,500 public servants will be laid off and are expected to leave their back-office roles.

Finance Minister Rita Saffioti said priorities were changing and the government needed the ability to reinvest in key areas.

He said his focus was on supporting the Western Australian community and ensuring small businesses still had customers coming through the door.

“We took all the factors into consideration and tried to get the balance right,” he said.

“You can always do more, and there are people who want more, but we did what we could to support families.”