Budget mid-year review: Treasurer Rita Saffioti unveils iron ore windfall and new infrastructure spending

Treasurer Rita Saffioti has unveiled a $3.1 billion budget surplus but no new cost of living relief, less than three months out from the State election. The bigger than expected surplus was largely the result of iron ore royalties, which are up another $1.7 billion, making up for a $670 million write-down in lithium. Ms Saffioti said a domestic economy that is growing at double the national rate was proof of the “resilience and strength” of WA, but not-for-profits warned the wealth is not being evenly shared. Liberal Leader Libby Mettam said the good times were being wasted. “The Cook Labor government are the grinches who have stolen Christmas,” she said. “Never has Western Australia been more flush with cash, (but) Western Australians are struggling to make ends meet and the Cook Labor Government are reaping more in tax revenue and more as a result of revenue yest Western Australians are not being heard by a mean-spirited Government. “It’s not a result of good financial management of the Cook Labor Government but rather good fortune and, unfortunately, Western Australians continue to be ignored by a Government who have priorities elsewhere.” Ms Saffioti has warned West Australians should not expect another power bill credit to be announced before the March State election and denied she is saving big-spending promises for the campaign trail. “We’re not going to blow the Budget,” she said. “Without having an operating surplus we would be borrowing to pay for the milk, for the every week shop, so from a WA Government perspective that surplus goes towards building the hospitals, the roads, the energy. “A hallmark of this Government ... has been sustainable, strong financial management. It’s the only way to deliver the services that the people need and the economic infrastructure for jobs in the future.” Revised figures in the mid-year review revealed the domestic economy grew by 5.7 per cent in 2023/24 and is on track to grow 3.5 per cent this financial year. WA’s post-Covid economy has grown at double the national rate and unemployment is expected to remain at 4 per cent. “This is the longest period of sustained lower unemployment on record and that helps, in a sense, give the community confidence in how they spend and how they move forward in our economy,” she said. The Government is spending too, with another $1.3 billion boost to record infrastructure commitments, including $438 million to develop a proposed wind farm in Kondinin in the Wheatbelt. “Because infrastructure helps and supports families. Building rail lines helps and supports families, building hospitals helps and supports families,” Ms Saffioti said. She called it “incredible” that an extra 276,000 people have moved to WA since March 2020. Population growth helped stamp duty receipts swell by $668 million but pleas for immediate relief in payroll tax, stamp duty or the cost of car registration were rebuffed by the Treasurer. She said $1.1 billion worth of cost of living measures had already been announced this year. “It may be old news to some people in this room, but for may families they’re receiving that $350 power bill credit now, that is assistance going out right now,” Ms Saffioti said. “Some families are doing it very tough and that’s why we continue to make sure we work with the community to deliver support, I also know people want housing as our number one priority.” The WA Council for Social Services welcomed an extra $1.4 million for financial counselling, but warned that other measures fall short. “It is unfair to consider measures such as free zoo visits and museum trips as ‘cost of living relief’ when families return home to empty pantries,” CEO Louise Giolitto said. “This is clearly a missed opportunity to announce a much-needed funding package targeted to deliver financial relief for those doing it toughest... the series of short-term sugar hits that have been delivered can only go so far. “We need long term genuine solutions, with fairer and better targeting. WA is a great State, let’s make it a fairer one too.” Foodbank is bracing for an influx post-Christmas period, after recording a record 1,095 customers through its doors in a single day last week. “The economy is performing, without doubt, but it’s a dual speed economy that means one end is doing really well and the other is not,” chief executive Kate O’Hara said. “The short term crisis is not being addressed... that could be rent relief, that could be food relief, that could be utilities relief, many levers are available to pull fairly quickly.” Ms Mettam said the Liberal party was committed to “real” cost of living relief, if it wins the State election on March 8, but couldn’t say how she proposed to pay for it. “We are committed to real cost of living relief, much more than free tickets to the Perth zoo or the royal show.. we’ve already announced our commitment to cut Labor’s electricity tax, meaningful relief such as meningococcal vaccination payments ... stamp duty relief for first home buyers and seniors that want to downsize. “Budgeting is all about priorities and Labor have got them wrong.” Asked whether the Liberal’s priorities will be funded cuts elsewhere or by spending the surplus, she eventually deferred to Shadow Treasurer Steve Martin. “We received this mid-year review in the last hour, we will go through that carefully and make some decisions,” he said. “Our final figures will be announced, but we will absolutely remain in surplus.”