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The budget reveals $17.1 billion in new road and rail funding. Only a fraction of that is heading west
Western Australia will receive just 2 per cent of new infrastructure funding contained in the federal budget handed down on Tuesday night.
The budget contains $17.1 billion in new infrastructure funding around the country over the next decade, but the only WA project included is $350 million for the Kwinana Freeway widening project promised by WA Labor during the state election.
Treasurer Jim Chalmers has delivered the final budget before the federal election.Credit: Getty Images
The funding realises the fears of the WA government, with Treasurer Rita Saffioti on Monday predicting the state would be short-changed on infrastructure compared with the rest of the nation.
The biggest winner from the new spend is Queensland, which has benefited from a $7.2 billion pledge to upgrade Bruce Highway.
Victoria was also a beneficiary, with a $1 billion “Road Blitz” commitment for a range of projects in Melbourne’s western suburbs where federal Labor is trying to drum up voter support before the May election.
“Our budget investments will make Australia’s road and rail networks stronger, safer, and more efficient – which means more convenient commutes, less congestion and faster freight delivery,” read a joint statement from Infrastructure Minister Catherine King, Regional Development Minister Kristy McBain, Cities Minister Jenny McAllister and Assistant Regional Development Minister Anthony Chisholm.
WA’s GST share remains much healthier than it would have been under the previous regime, with $7.83 billion in payments flagged next financial year – up from $7.4 billion this financial year.
What else is there for WA?
In a surprise addition to the budget, Treasurer Jim Chalmers announced two more years of tax cuts starting from next July equating to about $268 in 2026-27 and 2027-28 for an average earner of $79,000.
The cuts come from a reduction in the tax rate in the $18,201 to $45,000 bracket from 16 per cent to 15 per cent in 2026, and from 15 per cent to 14 per cent from July 2027.
WA will also be a beneficiary of an increased spend on the Australian Border Force after a series of embarrassing breaches saw people-smuggler boats enter Australian waters and even make it to land on our north-west coast.
Labor will spend $84.5 million over four years from 2025-26 to boost Australia’s border security, including $74.9 million to address illegal fishing in Australia’s northern waters and support prosecutions.
More biosecurity officers and ABF staff will also be stationed at Perth Airport and seaports in Wyndham and Dampier.
Linked to this is a crackdown on illegal tobacco products entering the country.
About $7 million will be spent over the next two years to give Border Force staff new tools to detect illicit tobacco in international cargo and mail.
The Commonwealth will also spend more money preparing for AUKUS and the purchase of Virginia-class submarines from the USA.
This includes $61.7 million in 2025-26 to “provide regulatory, safety and policy advice in support of Australia’s acquisition of a conventionally armed, nuclear‑powered submarine capability”.
The decommissioning of the Endeavour floating oil facility that is moored off the northern coast will ramp up with an undisclosed amount of money in the budget.
The budget papers said the financial implications were confidential because they would “impair the Commonwealth’s position in negotiating contracts for these services”.
In the resources space, the Commonwealth is continuing its green steel push with $2 billion set aside over two decades for production credits that will be made available to aluminium smelters like Alcoa to use renewable energy by 2036.
The budget also includes $1 billion over seven years from 2024-25 for the Green Iron Investment Fund to establish that industry in Australia.
Looking to the skies, the Square Kilometre Array radio telescope in the Murchison region has been allocated $47.9 million to address “funding shortfalls”.
WA will also share in $19.6 million to extend a sexual assault legal service pilot and $2 million for upgrades to the Holocaust Institute of WA education centre.
Funding is finally drying up for the Perth City Deal, which has seen the construction of the Boorloo Bridge and ECU city campus.
Two items that remain in the budget – but have seen no progress on the physical buildings – is the $50 million set aside for the Aboriginal Cultural Heritage Centre and the $372 million Comprehensive Cancer Centre.
The state’s mining industry remains a positive force on the budget.
The papers suggest tax receipts are up by $6.7 billion in 2025-26 and $9.4 billion over the next five years thanks to higher employment linked to mining.
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