No-risk Mark McGowan blows it on reform

WA Premier Mark McGowan. Picture: Colin Murty

Armed with both money and power, WA Premier Mark McGowan had an extraordinary opportunity to deliver the sort of generational policy changes that most politicians would only dream of.

It is 3½ years to the next election, but such is the scale of Labor’s political dominance in Western Australia that it could realistically bank on at least 7½ years until there would seem to be any real risk of his party losing government.

McGowan’s resounding election win in March gave Labor complete control over both houses of parliament, and presented him with an unfettered path to push through legislation.

And the astounding iron ore price of the past 12 months means WA enjoys a level of financial strength like no other state.

McGowan’s grip on power and the state’s financial position meant the Premier had a chance to push significant, lasting change and meaningful reform.

With the exception of the surprise budget-eve announcement to shut down the logging of the state’s native forests, there was little by way of drama or surprise in McGowan’s first budget since giving himself the additional responsibility of Treasurer.

The extraordinary windfall enjoyed this past year, which has delivered a record surplus right in the middle of a global pandemic, has not led to any extravagant spending promises or bold policy reforms.

As the opposition pointed out, the big spending commitments in this budget – namely $1.9bn for the health system and the $875m pledge for more social housing – were made to clean up messes that had emerged under the current government.

Opposition Treasury spokesman Steve Thomas lamented that the government had not grabbed a one-off opportunity for meaningful reform.

“In particular, there will never be a better opportunity to reform payroll tax, because the upfront cost of reform is high and can only be done in times of plenty like we now enjoy,” Dr Thomas said.

Measures such as payroll tax reform, or the replacement of stamp duty with land tax, have long been touted by various lobby groups and public policy wonks but they can now save their breath for a generation.

It was McGowan’s promise of careful spending that got him into power in 2017, and it was a conservative, deeply risk-averse approach to Covid and the state’s borders that led him to the most emphatic election victory in modern Australian history earlier this year.

In McGowan’s tempered, conservative budget, West Australians have got what they voted for.