Treasurer Rita Saffioti says her government’s efforts to address cost-of-living pressures on West Australian families have been appropriate as she unveils yet another ballooning surplus.
Monday’s mid-year budget update has seen WA’s projected operating surplus for this financial year jump by $493 million to $3.1 billion, thanks mostly to $1.7 billion more of iron ore royalties and $1 billion in stamp duty payments and car rego being poured into WA’s coffers than expected back in May.
That was partly offset by increased spending right across government, including $356 million in health, $368 million in communities and $194 million in Main Roads. There were also billions in extra spending on power, road and rail infrastructure.
Saffioti said the update – her last before the March state election – showed the strength of the WA economy, delivered finances that were the envy of the nation, and doubled down on efforts to unlock housing supply across the state.
The WA economy continues to go gangbusters, with household consumption and business investment tracking higher than the east coast and state final demand (a key indicator of the health of the local economy) is expected to grow 3.5 per cent – up from 3.25 per cent in May.
But these economic fortunes are not being felt by everyone in the state and social services advocates have criticised the government for not providing targeted cost-of-living relief for those feeling the pressure of inflation and the state’s housing market.
The budget update includes about $70 million in already announced cost-of-living measures on top of $1.1 billion in support for the 2024-25 year.
Asked whether the public would wonder why the government wasn’t reducing household bills like car registration when revenue was up, Saffioti spruiked the incoming $350 power bill credit working its way through households now and said she was trying to get the balance right.
WA Treasurer and Deputy Premier Rita Saffioti at the mid-year budget review.Credit: Hamish Hastie
“That balance is making sure we have we don’t blow the books, but we deliver really good services and strong support for cost of living,” she said.
“We’ve got the other initiatives, like [free] public transport during this period of time, so as a result, those cost-of-living initiatives are rolling out right now.”
Saffioti said infrastructure spending was important to build the state’s economy which, in turn, allowed the state to deliver cost-of-living support.
“That’s why we continue to make sure that we create jobs in our economy because jobs are fundamental to how families can succeed,” she said.
Saffioti also spruiked her government’s decision to pour a further $400 million into extending utilities to future land developments to address the housing crisis.
The Housing Enabling Infrastructure Fund will allow Western Power and WaterCorp to build power and water infrastructure to land in priority areas like Byford and Ellenbrook, reducing the time developers have to wait for those services to become available.
Saffioti said housing costs were a significant driver of cost-of-living pressures, and by increasing supply, costs like rent would drop.
WA Council of Social Services chief executive Louise Giolitto said it was hard to celebrate a $3.1 billion surplus when families were struggling to put food on the table.
“Many of the $70 million in additional cost of living measures to-date unfortunately fall short of what is needed for struggling WA families, and it is unfair to consider measures such as free zoo visits and museum trips as ‘cost of living relief’, when families return home to empty pantries,” she said.
“Given the circumstances, this is clearly a missed opportunity to announce a much-needed funding package targeted to deliver financial relief for those doing it toughest. Especially at this time of the year.
“It’s time to put the people of WA first and offer financial relief to all struggling households. The series of short-term sugar hits that have been delivered can only go so far.
“We need long-term genuine solutions, with fairer and better targeting.”
Giolitto’s comments were echoed by Liberal leader Libby Mettam who accused the Cook government of being the Grinch who stole Christmas.
“The Government has never been more flush with cash, at a time when families are being forced to choose between paying the bills and buying their kids Christmas presents,” she said.
“Labor has failed to deliver on health, Labor has failed to deliver on housing, and Labor has failed to keep people safe.
“Labor is a tired, incompetent, eight-year-old government.
“Are you better off after eight years of hard Labor?”
The state’s debt pile has been shaved by $289 million to $32.5 billion.
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