State government’s budget for 2024-25 tackles cost-of-living relief
- Replies 16
In a move that has been met with both applause and criticism, Western Australia's government has unveiled a budget that promises significant cost-of-living relief for households, families, tradies, and pensioners.
Treasurer Rita Saffioti, in her first state budget, announced a surplus and a substantial allocation of funds aimed at easing the financial burden on residents amidst challenging economic times.
The centrepiece of the budget is a $400 electricity credit for every household and small business, marking the fourth consecutive year of power bill relief.
This measure is part of a broader $762 million spend designed to provide cost-of-living relief, buoyed by an operating surplus of $2.6 billion for the state.
Despite a slight dip in the forecasted surplus to $3.2 billion due to volatility in the commodities market and a 30 per cent drop in iron ore prices, the state's net debt is reported to be lower than anticipated at $28.6 billion.
This is a significant $15 billion less than expected, which Premier Roger Cook attributed to the state's strong economic performance and responsible financial management.
The budget has been framed as a win for 'every Western Australian’, with benefits extending to families, seniors, tradies, and renters.
‘We are doing what’s right for WA,’ Premier Cook said.
‘Our responsible financial management and strong economy mean we can deliver this support without leaving behind a mountain of debt for future generations.’
‘Whether you’re in the regions or the suburbs, and no matter your circumstances, we’re providing relief for you and your family—because I’ll always do what’s right for WA.’
However, the opposition has voiced concerns, with leader Shane Love suggesting that the government is merely reaping the benefits of a surplus generated by the hard work of miners and other sectors.
He criticised the lack of meaningful reform and investment to ensure the state's continued prosperity.
‘Despite a large amount of money went into the coffers, and net debt will rise under this treasurer, net debt will rise because the treasurer is unable to control the cost of the projects she is slowly delivering across WA,’ he said.
Love described the electricity credit as a ‘sugar hit to families’ and pointed out that it doesn't solve the bigger problem of families struggling with rising costs due to the housing crisis and higher fees.
‘There is no meaningful investment to see that the business sector rises to the future,’ he said.
Shadow Treasurer Neil Thomson echoed these sentiments, pointing out the state's health system challenges, ambulance ramping issues, housing crisis, and law and order problems.
‘Less than a year away from the next election, we see more bandaid measures and an attempt to paper over the cracks of neglect and disinvestment in services that really matter to Western Australians,’ he said.
‘How can it be in a state as rich as WA that we have a health system that is on life support, we have 10,000 children waiting to see a pediatrician? Two years it takes to see a pediatrician—it is a damning indictment on this government.’
‘How can it be that we have 50,000 hours of ambulance ramping, five times more than when this government came in,’ he added.
‘How can it be that we have mums and kids sleeping in tents and cars with a housing crisis that continues to get worse and worse, and longer and longer.’
‘How can it be that in a state as rich as WA we have a law and order crisis? We have the highest rate of violent crime in Australia, you are twice as likely to be assaulted in WA than any other state.’
‘We are the violent crime capital of Australia, the police are leaving in droves, this government has failed to deliver on the extra police it promised the people of WA.’
Economy
Economically, WA has seen robust growth, with a 4.7 per cent increase in the state's economy, outpacing national growth and contributing significantly to the nation's exports.
Since the WA Labor government took over, over 300,000 jobs have been made, with a record 1.6 million people in Western Australia now employed. The unemployment rate is at 3.4 per cent, which is the lowest in the whole of Australia.
The government plans to invest $1.8 billion to ‘position WA into a clean energy powerhouse’, with additional funds allocated to develop new industrial areas and bolster the skilled workforce.
The Strategic Industries Fund will receive an extra $500 million to help create new industrial zones in Perth and regional areas. This money will go towards providing land for projects like renewable hydrogen and processing critical minerals, generating jobs.
An additional $195 million will be invested in training programs to build up the skilled workforce in Western Australia, ensuring more people are prepared for future job opportunities.
$25 million will be allocated to help Western Australia attract big events, enhancing its reputation as a top destination for hosting major gatherings.
Furthermore, $77 million will be used to secure important local events within the state.
Cost of Living
On the cost of living front, the government's investment of $762 million aims to alleviate pressures on families, with additional support for pensioners, veterans, and Health Care Card holders, who will receive $734 in assistance.
'This $762m package in new support for families builds on the raft of measures we’ve already announced or implemented to ease the pressure on Western Australians,' Saffioti said.
'These initiatives put more money back in the pockets of households, as well as provide them with cheaper travel–whether it’s our pensioners and families in the regions, public transport users in the metro area or school kids right across the state.'
Pensioners living in regional Western Australia will receive a $20.3 million increase to their Regional Pensioner Travel Cards.
Starting from 1 July, the value of these cards will go up by $100, reaching $675 per year. This boost will help pensioners afford to travel in regional areas with limited public transportation options, allowing them to move around more freely.
However, residents will see a 2.5 per cent increase in electricity and water costs in 2024-25, along with hikes in public transport and motor vehicle expenses.
Housing
The housing sector will receive a $1.1 billion investment to address the housing shortage, affordability issues, and homelessness services.
The first 5,000 home buyers will benefit from stamp duty concessions available to homes valued up to $600,000.
The government has committed $840 million to support social and affordable housing, as well as initiatives addressing homelessness.
With the housing crisis driving up demand for homelessness support services, and Perth's vacancy rate at a mere 0.4 per cent as of March, this funding aims to increase housing supply and provide more support services to help individuals secure permanent accommodation.
Additionally, a new Vacant Property Rental Incentive Scheme will receive $5 million.
This scheme encourages property owners to rent out their vacant properties by offering payments to owners of up to 1000 vacant properties who agree to lease them out for a minimum of 12 months to new long-term tenants.
Health and Mental Health
Health and mental health services will see a record $3.2 billion investment, with a focus on improving public health services and infrastructure.
Over $1.2 billion will be dedicated to enhancing Western Australia's public health service, while $839 million will be invested in infrastructure projects.
Within this, $154.6 million will be allocated to improve emergency department access and support long-stay patients in the health and mental health sectors.
Additionally, $60.9 million has been set aside to revamp child and adolescent mental health services, following recommendations put forward by the Infant, Child, and Adolescent Taskforce.
Family and Domestic Violence
Family and domestic violence prevention initiatives will be expanded with an additional $96.4 million allocated towards the Family and Domestic Violence Response Team and the establishment of a ‘one-stop hub’ for women and children.
Creative Arts
The creative arts sector is not left out, with a $5.9 million funding increase over two years for major cultural organisations, such as the West Australian Ballet Company, Opera Company, and Symphony Orchestra.
How do you feel about the budget measures announced? Let us know in the comments below.
Treasurer Rita Saffioti, in her first state budget, announced a surplus and a substantial allocation of funds aimed at easing the financial burden on residents amidst challenging economic times.
The centrepiece of the budget is a $400 electricity credit for every household and small business, marking the fourth consecutive year of power bill relief.
This measure is part of a broader $762 million spend designed to provide cost-of-living relief, buoyed by an operating surplus of $2.6 billion for the state.
The WA government released its budget for the year 2024-25, providing cost-of-living relief. Credit: Shutterstock
Despite a slight dip in the forecasted surplus to $3.2 billion due to volatility in the commodities market and a 30 per cent drop in iron ore prices, the state's net debt is reported to be lower than anticipated at $28.6 billion.
This is a significant $15 billion less than expected, which Premier Roger Cook attributed to the state's strong economic performance and responsible financial management.
The budget has been framed as a win for 'every Western Australian’, with benefits extending to families, seniors, tradies, and renters.
‘We are doing what’s right for WA,’ Premier Cook said.
‘Our responsible financial management and strong economy mean we can deliver this support without leaving behind a mountain of debt for future generations.’
‘Whether you’re in the regions or the suburbs, and no matter your circumstances, we’re providing relief for you and your family—because I’ll always do what’s right for WA.’
However, the opposition has voiced concerns, with leader Shane Love suggesting that the government is merely reaping the benefits of a surplus generated by the hard work of miners and other sectors.
He criticised the lack of meaningful reform and investment to ensure the state's continued prosperity.
‘Despite a large amount of money went into the coffers, and net debt will rise under this treasurer, net debt will rise because the treasurer is unable to control the cost of the projects she is slowly delivering across WA,’ he said.
Love described the electricity credit as a ‘sugar hit to families’ and pointed out that it doesn't solve the bigger problem of families struggling with rising costs due to the housing crisis and higher fees.
‘There is no meaningful investment to see that the business sector rises to the future,’ he said.
Shadow Treasurer Neil Thomson echoed these sentiments, pointing out the state's health system challenges, ambulance ramping issues, housing crisis, and law and order problems.
‘Less than a year away from the next election, we see more bandaid measures and an attempt to paper over the cracks of neglect and disinvestment in services that really matter to Western Australians,’ he said.
‘How can it be in a state as rich as WA that we have a health system that is on life support, we have 10,000 children waiting to see a pediatrician? Two years it takes to see a pediatrician—it is a damning indictment on this government.’
‘How can it be that we have 50,000 hours of ambulance ramping, five times more than when this government came in,’ he added.
‘How can it be that we have mums and kids sleeping in tents and cars with a housing crisis that continues to get worse and worse, and longer and longer.’
‘How can it be that in a state as rich as WA we have a law and order crisis? We have the highest rate of violent crime in Australia, you are twice as likely to be assaulted in WA than any other state.’
‘We are the violent crime capital of Australia, the police are leaving in droves, this government has failed to deliver on the extra police it promised the people of WA.’
What’s in it for Western Australians on this year’s state budget? Credit: Shutterstock
Economy
Economically, WA has seen robust growth, with a 4.7 per cent increase in the state's economy, outpacing national growth and contributing significantly to the nation's exports.
Since the WA Labor government took over, over 300,000 jobs have been made, with a record 1.6 million people in Western Australia now employed. The unemployment rate is at 3.4 per cent, which is the lowest in the whole of Australia.
The government plans to invest $1.8 billion to ‘position WA into a clean energy powerhouse’, with additional funds allocated to develop new industrial areas and bolster the skilled workforce.
The Strategic Industries Fund will receive an extra $500 million to help create new industrial zones in Perth and regional areas. This money will go towards providing land for projects like renewable hydrogen and processing critical minerals, generating jobs.
An additional $195 million will be invested in training programs to build up the skilled workforce in Western Australia, ensuring more people are prepared for future job opportunities.
$25 million will be allocated to help Western Australia attract big events, enhancing its reputation as a top destination for hosting major gatherings.
Furthermore, $77 million will be used to secure important local events within the state.
Cost of Living
On the cost of living front, the government's investment of $762 million aims to alleviate pressures on families, with additional support for pensioners, veterans, and Health Care Card holders, who will receive $734 in assistance.
'This $762m package in new support for families builds on the raft of measures we’ve already announced or implemented to ease the pressure on Western Australians,' Saffioti said.
'These initiatives put more money back in the pockets of households, as well as provide them with cheaper travel–whether it’s our pensioners and families in the regions, public transport users in the metro area or school kids right across the state.'
Pensioners living in regional Western Australia will receive a $20.3 million increase to their Regional Pensioner Travel Cards.
Starting from 1 July, the value of these cards will go up by $100, reaching $675 per year. This boost will help pensioners afford to travel in regional areas with limited public transportation options, allowing them to move around more freely.
However, residents will see a 2.5 per cent increase in electricity and water costs in 2024-25, along with hikes in public transport and motor vehicle expenses.
Housing
The housing sector will receive a $1.1 billion investment to address the housing shortage, affordability issues, and homelessness services.
The first 5,000 home buyers will benefit from stamp duty concessions available to homes valued up to $600,000.
The government has committed $840 million to support social and affordable housing, as well as initiatives addressing homelessness.
With the housing crisis driving up demand for homelessness support services, and Perth's vacancy rate at a mere 0.4 per cent as of March, this funding aims to increase housing supply and provide more support services to help individuals secure permanent accommodation.
Additionally, a new Vacant Property Rental Incentive Scheme will receive $5 million.
This scheme encourages property owners to rent out their vacant properties by offering payments to owners of up to 1000 vacant properties who agree to lease them out for a minimum of 12 months to new long-term tenants.
Health and Mental Health
Health and mental health services will see a record $3.2 billion investment, with a focus on improving public health services and infrastructure.
Over $1.2 billion will be dedicated to enhancing Western Australia's public health service, while $839 million will be invested in infrastructure projects.
Within this, $154.6 million will be allocated to improve emergency department access and support long-stay patients in the health and mental health sectors.
Additionally, $60.9 million has been set aside to revamp child and adolescent mental health services, following recommendations put forward by the Infant, Child, and Adolescent Taskforce.
Family and Domestic Violence
Family and domestic violence prevention initiatives will be expanded with an additional $96.4 million allocated towards the Family and Domestic Violence Response Team and the establishment of a ‘one-stop hub’ for women and children.
Creative Arts
The creative arts sector is not left out, with a $5.9 million funding increase over two years for major cultural organisations, such as the West Australian Ballet Company, Opera Company, and Symphony Orchestra.
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