West Australian Premier Mark McGowan has handed down a budget surplus of $3.3 billion, and the state is on track for 10 consecutive years in the black, buoyed by overflowing mining royalties.
Mr McGowan boasted his state was “walking tall” amid rugged economic conditions worldwide, backed by $11 billion of mining royalties in the last financial year, with another $7.8 billion expected for the 2023-34.
However, the premier fired a warning shot at his federal and interstate counterparts that any move to renegotiate the state’s favourable GST arrangement and lower its legislated 70¢ floor would be “contemptible and offensive”.
WA Premier Mark McGowan has handed down a sixth consecutive budget surplus. James Brickwood
The premier described the WA budget as the “envy of the nation” and announced a $600 million energy bill handout for all households, designed to dovetail with Tuesday’s federal assistance package aimed at struggling homes.
Mr McGowan described Thursday’s budget as one for every West Australian, given the energy handout was not means tested, but denied it would stoke inflation. He had been assured the massive assistance package would have a negligible impact on inflation.
With a $3.3 billion operating surplus expected for 2023-24, the WA budget is expected to remain in the black over the forward estimates, though its net cash position is forecast for a $1.1 billion deficit next financial year. Thursday’s budget was the sixth consecutive surplus for WA.
Dwindling housing supply
Mr McGowan said his dream on assuming the WA premiership was to make the state the strongest in the nation.
“It’s all I’ve ever wanted, and we are,” he said.
Moves to address Perth’s dwindling housing supply formed a major element in Thursday’s budget, with close to half a billion dollars set aside for new social and affordable housing as well as other measures to encourage overseas builders into WA.
A further $2.8 billion will be spent on a major restructuring of the state’s energy grid, including a new, large battery storage system to be constructed in the southern coal town of Collie.
The state’s languishing healthcare system, struggling with ongoing ambulance ramping and staffing shortages, will receive $1.2 billion for major public hospital infrastructure projects. Another $840 million will be spent on increasing hospital services.
The state’s economy is expected to continue to grow through the forward estimates, though Mr McGowan said RBA rises were affecting consumption, as well as people travelling overseas on holiday.
Meanwhile, CPI is expected to fall from 3.5 per cent in 2023-24 to 2.75 per cent the following year.