WA State Budget 2022: Your five-minute guide to Premier Mark McGowan’s Budget - PerthNow

Premier Mark McGowan has handed down his second Budget as Treasurer, unveiling a second consecutive mammoth surplus that he credited to WA’s “soft landing” from COVID.

Here’s what you need to know:

Finances

WA is on track to bank a $5.7 billion operating surplus in 2021-22 – marginally below the $5.8 billion recorded last year. Further surpluses are predicted in each of the next four years, totalling $10.9 billion across that span. Net debt is projected to fall under $30 billion this year for the first time since 2015 – but then immediately resumes an upward trajectory and reaches $34 billion in 2025-26. However, Premier Mark McGowan stressed conservative iron ore forecasts meant there was “upside” risk on debt, with further royalties’ windfalls likely to bring the figure down even further.

WA’s on track to record a huge surplus. Credit: Sergio Dionisio/Bloomberg

Household fees and charges

Mr McGowan described cost of living relief for WA families as the “centrepiece” of the Budget and that is headlined by a $400 electricity credit. However, no fees and charges were frozen – and the price of power will jump 2.5 per cent from July, more than the 1.75 per cent forecast in the last Budget.

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Car registration is up 3.8 per cent, drivers licence fees up 6.4 per cent and the Emergency Services Levy up 5 per cent. The $400 energy credit means the total fees and charges paid by the “representative” WA household falls 3.8 per cent ($243.59) from $6380.21 last year to $6136.62 in 2022-23.

Car rego is on the up. Credit: Kelsey Reid/The West Australian

Iron ore

The perennial hero of the State’s budget has delivered again, this year forecast to contribute $10.3 billion to Treasury coffers. That’s a slight fall from last year’s record $11.3 billion in iron ore royalties but remains by far the most significant single source of income for WA.

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Typically conservative iron ore forecasts have the steel-making commodity pencilled in at US$77.50 for 2022-23 (spot price was US$132 on Thursday) before falling to the long-run average of US$66 across the Budget out years.

The hero of the State Budget has delivered again. Credit: Rio Tinto/TheWest

Health

There were no new surprises for WA’s ailing public health system, with the Budget confirming previously announced commitments to improve emergency department capacity ($252 million) and medical infrastructure ($223 million).

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In total, a record $2.5 billion will be invested in health and mental health next year and WA Health’s annual budget grew to $11.6 billion in 2021-22 – a 31 per cent increase from 2016-17. However, that is forecast to fall for consecutive years down to $10.8 billion in 2023-24, largely the result of an anticipated wind back in spending on COVID measures.

A whopping $2.5 billion will be invested in health and mental health. Credit: Michael Wilson/The West Australian

Housing

The Budget contains a suite of modest measures designed to increase housing supply, including a 100 per cent stamp duty rebate for the purchase of off-the-plan apartments below $500,000. In recognition of the historically tight rental market, build-to-rent projects will be granted a 50 per cent land tax concession from July 2023. Private developments that include at least five per cent social or community housing will also be granted a new density. Keystart income eligibility limits will also be permanently increased to $105,000 for singles and $155,000 for couples.

Stamp duty relief is part of the Government’s housing plan. Credit: Kerry Edwards/WA News

Operating surplus

2021-22: $5.7 billion

2022-23: $1.6 billion

2023-24: $3.5 billion

2024-25: $2.8 billion

2025-26: $3 billion

Net debt

2021-22: $29.9 billion

2022-23: $31.1 billion

2023-24: $32.2 billion

2024-25: $33.9 billion

2025-26: $33.9 billion

Unemployment rate

2022-23: 3.75%

2023-24: 3.75%

2024-25: 3.75%

2025-26: 3.75%

Wages growth

2022-23: 2.75%

2023-24: 3%

2024-25: 3%

2025-26: 3%

Iron ore price ($US/tonne)

2022-23: $77.50

2023-24: $66

2024-25: $66

2025-26: $66

Government expenses 2022-23

Health and Mental Health: $11.5 billion (31%)

Education: $5.9 billion (16%)

Electricity and water subsidies: $1.3 billion (4%)

Roads, rail and transport: $3.5 billion (9%)

All other: $6.8 billion (19%)

Community safety: $4.1 billion (11%)

Communities: $2.8 billion (8%)

Training and TAFEs: $900 million (2%)

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2022-05-12 06:31:00Z
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