WA government hands down 2025-26 state budget

News.com.au

5 hours ago

The nation's strongest economy has delivered its seventh straight net operating surplus of $2.5bn, largely driven by huge revenue from mining royalties and a bigger slice of the GST.
The WA budget was handed down by Treasurer Rita Saffioti making it the first since the Cook Labor government was re-elected in a landslide earlier this year.
Treasurer Saffioti said the government took a conservative approach to the budget, given global uncertainties surrounding US trade tariffs and conflict in the Middle East.
'This budget cements WA as the most responsible budget manager of the nation, while investing in the economic and social infrastructure to power new jobs and investment in the state,' she said.
'In a world of global instability and uncertainty our government has a strong economic plan for this state.
'It is a constant reminder of the importance of protecting WA's share of the GST.'
WA's GST grant is expected to rise by $400m to $7.8bn in the coming year.
This year the state received 75 per cent of its population share of the GST, but the government says it was estimated WA contributed $39bn to other states costing every Western Australian about $13,000 each.
The biggest spend in the budget by the government was $38bn allocated to infrastructure projects over the next five years to support future growth.
The money will fund hospitals, schools, community facilities and infrastructure needed for electricity and water supplies.
How does WA compare to other states?
WA is the nation's biggest economy, which has seen the state government deliver a surplus every year since 2018-19, driven by a huge revenue from mining royalties and a bigger slice of the GST.
Victoria, on the other hand, forecast its first operating surplus recorded since the pandemic at $600m in its recent budget, but predicts its net debt will reach $194bn by the end of the decade.
NSW is expected to deliver an operating surplus of $4.9bn by the end of the June and remain in surplus next year.
Cost of living
WA households will no longer receive power bill relief from the state government despite electricity and water bills rising by 2.5 per cent.
Electricity credits were first applied to bills in November 2020, but the popular program to help households through the cost-of-living crisis has now been scrapped. A credit will still be applied under a federal government initiative later this year.
Households are likely to see their electricity bills rise to about $1950, as well as pay an additional $50 a year for water.
Road users will be paying an additional $33 a year for their car rego and driver's licences which will increase by about 3 per cent over the coming year.
While household costs go up, the government has invested $963m in other cost of living measures.
Initiatives have been targeted at helping low income households purchase residential batteries through no interest loans, cash payments for families with school aged children and cheaper public transport.
Housing
Like other states, housing affordability is a major issue for many Western Australians on middle to low and single incomes.
As the state grapples with a huge housing shortage, population growth and demand has seen house prices and rent soar across the state.
The WA government has invested $1.4bn to boost supply and other initiatives to drive housing in Perth and the regions.
First homebuyers will be helped into the housing market with reduced stamp duty, along with others who buy homes off the plan.
Key start programs are being launched for people willing to live in a modular home or take up a shared equity loan with the government for apartments, townhouses and other multi-dwelling housing.
Other initiatives will see millions used to fast track water, wastewater and energy substations to unlock housing lots in Perth and the regions.
Jobs
Building and construction workers are being lured to the state with promises of cash under programs that have already seen more than 1000 tradespeople relocate to WA from across Australia and NZ.
A Construction Visa Subsidy Program has also been extended to help building and construction businesses attract skilled migrant workers to fill vacant positions that will speed up home and infrastructure projects across WA.
The budget includes $331m to be spent in TAFE and training to skill workers to meet the demands of future industries, seeing $12m allocated to train hundreds of apprentices for AUKUS.
The treasurer said it was a budget that cemented WA as the most responsible budget manager of the nation, while investing in the economic and social infrastructure to power new jobs and new investment in the state.
'Western Australia has become the envy of the nation for our financial management and economic success.'