WA State Budget - May 2024

In a big month for budgets, the West Australian Government has just finished their release of numbers and figures that will impact all West Aussies. 

With help from the ABC News, we have a summary of the budget highlights:

From ABC reporters Andrea Mayes and Keane Bourke

$3.2 billion surplus

With another budget surplus, this time to the tune of $3.2 billion, all Western Australians share in the bounty.

The surplus is slightly lower than the $3.7 billion forecast in the mid year review, which treasurer Rita Saffioti has blamed on commodity price volatility and changes in the timing of Commonwealth payments.

It's also $1 billion lower than last year's surplus.

Nonetheless, WA's rate of economic growth, forecast at 5.25 per cent this financial year, is double the national rate of growth.

The government's splashing the excess cash on a variety of things, including cost of living relief, housing and big ticket infrastructure projects.

Stamp duty rebates for first homebuyers

With the median cost of buying a house in Perth now a record $620,000, providing support for homebuyers has never been more critical.

An estimated 5,000 first homebuyers are expected to benefit from stamp duty concessions, but there is a catch.

It's only those buying houses worth less than $450,00 who will escape having to pay the tax altogether.

Properties valued at up to $600,000 will attract limited relief from stamp duty, but after that there's no concessions. This means that if you're buying in Perth, chances are you won't be eligible for help.

The government's trying to open up more land for development in regional areas - Broome, Karratha and Kalgoorlie - and has allocated $35 million for this.

Metronet cost blowouts again

The cost of Labor’s landmark Metronet projects is continuing to grow, with another $707 million added to the overall bill, with most covered by the Commonwealth.

The Yanchep line’s cost has grown the most, up $288 million since last year. It’s now more than double the original cost of $520 million and is now expected to cost $1.27 billion in total.

The Thornlie-Cockburn link will cost another $228 million, Victoria Park-Canning level crossing removal an extra $120 million and extending the Byford line will need another $70 million.

The government says there aren’t expected to be any further delays to projects though.

$400 power bill credit for West Australians

The biggest news out of the budget is another $400 power bill credit for households and small businesses – the fourth this government has provided.

Asked if she could have provided more relief, Treasurer Rita Saffioti said the government had to “get the balance right and [provide] what’s affordable, but also understanding that we’ve had other cost of living initiatives that we’ve released".

“We’ve seen of course Queensland go with an energy credit and then we’ve seen Victoria go with a student assistance payment. We’ve been able to do both."

The power bill credit and free public transport for students will together reduce the overall cost of government fees and charges for a “representative family” by two per cent, according to budget papers.

Without those two measures though, that typical family would be paying nearly $556 more than last year. That’s about an eight per cent increase, or more than double inflation.

The cost of a driver’s licence is staying the same, but vehicle insurance will go up 3.9 per cent and the emergency services levy will increase by 5 per cent.

There were a lot more announcements in the budget, to read the ABC News full summary, click here. https://www.abc.net.au/news/2024-05-09/wa-budget-2024-winners-and-losers/103821950

Alternatively, read the Budget Papers directly from the State Government website here: https://www.ourstatebudget.wa.gov.au/ 

Source: 

ABC News