Before the state budget is handed down on Thursday afternoon the WA government will have announced more than $3.4 billion worth of additional spending, a WAtoday analysis of pre-budget announcements has revealed.
This budget will be Treasurer Rita Saffioti’s first after she was elevated to the position in June last year following the retirement of former treasurer and premier Mark McGowan.
WA Treasurer Rita Saffioti in her office ahead of Thursday’s state budget.Credit: Trevor Collens
Save for more cost-of-living measures like the widely tipped fourth instalment of the government’s electricity credit – likely to be around the same size as last year’s $400 – much of the new spending has already been announced.
The government has made 41 pre-budget announcements ranging from as little as $2 million for additional registration concessions for classic cars to as big as the $843 million in extra spending on housing.
Even on Thursday morning the government continued to drip feed details of the budget including an extra $36 million to cut green tape and $500 million in funding to supercharge the development of the state’s 13 strategic industrial areas.
Despite this additional spending Saffioti is expected to hand down another healthy surplus – its seventh in a row – driven largely by high iron ore prices that far exceed the state’s purposely conservative estimates.
In its mid-year review the state estimated the iron ore price for 2023-24 would hit US$104 per tonne but WA Treasury’s own estimates put the average price at US$118 per tonne.
The mid-year review papers suggest that for every dollar increase in the iron ore price the government receives another $92 million in royalties, meaning WA is set to receive about $1.3 billion extra in royalties than expected just five months ago.
The state’s coffers will likely be bolstered by other revenue streams as well including stamp duty because of the continued heat in the housing market, payroll tax because of the state’s continued low unemployment, and car registration.
Saffioti told 6PR on Thursday she had “lots of adrenaline” and she had spoken to the state’s previous Labor treasurers McGowan and Ben Wyatt and former premier Geoff Gallop.
She flagged cost of living, housing and health as major areas of focus for the budget.
When asked about any further Metronet blowouts, which have become a common feature in budgets and mid-year reviews, Saffioti attempted to soften the blow.
“When you look at the cost of what we’re doing compared to the other states it’s much more affordable and the other point is what this does it lets us create new land releases in key areas where first time buyers go in,” she said.
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