Budget billions to 'fortify' state against global chaos

The nation's richest state will splash its cash to combat global instability, grow its economy, build homes and ease the cost-of-living crisis.
Western Australian Treasurer Rita Saffioti's second budget on Thursday delivered a $2.5 billion windfall for the state for the current financial year, with a further $2.4 billion surplus projected for 2025-26.
It's the state's seventh consecutive operating surplus, which the Cook government says will help the state diversify and set its economy up for the future.
"This budget is being handed down at a time when the geo-political situation has been turned on its head," Ms Saffioti told reporters.
"We have unprecedented tariff policies coming out of the US, while the worsening conflict in the Middle East is creating significant uncertainty in global markets."
Ms Saffioti said the budget aimed to "fortify" WA against global shocks, invest in economic infrastructure and set the state up for a future with plenty of jobs.
The Cook government's measures include $2.7 billion to bolster economic growth and create jobs, with a focus on local manufacturing.
The financial blueprint also includes a further $1.4 billion has been allotted to boost housing supply, including measures to increase the construction workforce and help families access affordable homes.
Almost $1 billion will be spent in cost-of-living relief, including residential battery rebates and no-interest loans, and reduced public transport fares.
The measure also supplies free student travel and pensioner discounts, and student assistance payments for families.
Health and mental health services will receive $1.4 billion to increase the number of doctors and nurses working in the state and bolster infrastructure, creating more hospital beds.
A further $1.8 billion has been allocated to education and training to build more schools, upgrade others, boost before and after class care, and support regional learning.
Net debt is expected to grow to $33.5 billion at the end of the current financial year, $1.1 billion than forecast, and expand to $42.4 billion over the forward estimates.
The state is expected to stay in the black with operating surpluses between $2.4 and $2.8 billion predicted over the next four years.
Economic growth is forecast to be 2.5 per cent in the year ahead, with 0.5 per cent expected in 2024-25 and 3 per cent in 2026-27.
Ms Saffioti said WA was the most resilient state in the nation and remained its economic powerhouse, with manageable debt levels.
The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said.
The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers.
"We have an abundance of the minerals that the world needs and we've got the solar and wind capacity that the world is striving for," she said.
"What we need to do is invest in the infrastructure to support the aspirations of the private sector, and that's what we're very much tailored to."
The nation's richest state will splash its cash to combat global instability, grow its economy, build homes and ease the cost-of-living crisis.
Western Australian Treasurer Rita Saffioti's second budget on Thursday delivered a $2.5 billion windfall for the state for the current financial year, with a further $2.4 billion surplus projected for 2025-26.
It's the state's seventh consecutive operating surplus, which the Cook government says will help the state diversify and set its economy up for the future.
"This budget is being handed down at a time when the geo-political situation has been turned on its head," Ms Saffioti told reporters.
"We have unprecedented tariff policies coming out of the US, while the worsening conflict in the Middle East is creating significant uncertainty in global markets."
Ms Saffioti said the budget aimed to "fortify" WA against global shocks, invest in economic infrastructure and set the state up for a future with plenty of jobs.
The Cook government's measures include $2.7 billion to bolster economic growth and create jobs, with a focus on local manufacturing.
The financial blueprint also includes a further $1.4 billion has been allotted to boost housing supply, including measures to increase the construction workforce and help families access affordable homes.
Almost $1 billion will be spent in cost-of-living relief, including residential battery rebates and no-interest loans, and reduced public transport fares.
The measure also supplies free student travel and pensioner discounts, and student assistance payments for families.
Health and mental health services will receive $1.4 billion to increase the number of doctors and nurses working in the state and bolster infrastructure, creating more hospital beds.
A further $1.8 billion has been allocated to education and training to build more schools, upgrade others, boost before and after class care, and support regional learning.
Net debt is expected to grow to $33.5 billion at the end of the current financial year, $1.1 billion than forecast, and expand to $42.4 billion over the forward estimates.
The state is expected to stay in the black with operating surpluses between $2.4 and $2.8 billion predicted over the next four years.
Economic growth is forecast to be 2.5 per cent in the year ahead, with 0.5 per cent expected in 2024-25 and 3 per cent in 2026-27.
Ms Saffioti said WA was the most resilient state in the nation and remained its economic powerhouse, with manageable debt levels.
The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said.
The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers.
"We have an abundance of the minerals that the world needs and we've got the solar and wind capacity that the world is striving for," she said.
"What we need to do is invest in the infrastructure to support the aspirations of the private sector, and that's what we're very much tailored to."
The nation's richest state will splash its cash to combat global instability, grow its economy, build homes and ease the cost-of-living crisis.
Western Australian Treasurer Rita Saffioti's second budget on Thursday delivered a $2.5 billion windfall for the state for the current financial year, with a further $2.4 billion surplus projected for 2025-26.
It's the state's seventh consecutive operating surplus, which the Cook government says will help the state diversify and set its economy up for the future.
"This budget is being handed down at a time when the geo-political situation has been turned on its head," Ms Saffioti told reporters.
"We have unprecedented tariff policies coming out of the US, while the worsening conflict in the Middle East is creating significant uncertainty in global markets."
Ms Saffioti said the budget aimed to "fortify" WA against global shocks, invest in economic infrastructure and set the state up for a future with plenty of jobs.
The Cook government's measures include $2.7 billion to bolster economic growth and create jobs, with a focus on local manufacturing.
The financial blueprint also includes a further $1.4 billion has been allotted to boost housing supply, including measures to increase the construction workforce and help families access affordable homes.
Almost $1 billion will be spent in cost-of-living relief, including residential battery rebates and no-interest loans, and reduced public transport fares.
The measure also supplies free student travel and pensioner discounts, and student assistance payments for families.
Health and mental health services will receive $1.4 billion to increase the number of doctors and nurses working in the state and bolster infrastructure, creating more hospital beds.
A further $1.8 billion has been allocated to education and training to build more schools, upgrade others, boost before and after class care, and support regional learning.
Net debt is expected to grow to $33.5 billion at the end of the current financial year, $1.1 billion than forecast, and expand to $42.4 billion over the forward estimates.
The state is expected to stay in the black with operating surpluses between $2.4 and $2.8 billion predicted over the next four years.
Economic growth is forecast to be 2.5 per cent in the year ahead, with 0.5 per cent expected in 2024-25 and 3 per cent in 2026-27.
Ms Saffioti said WA was the most resilient state in the nation and remained its economic powerhouse, with manageable debt levels.
The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said.
The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers.
"We have an abundance of the minerals that the world needs and we've got the solar and wind capacity that the world is striving for," she said.
"What we need to do is invest in the infrastructure to support the aspirations of the private sector, and that's what we're very much tailored to."
The nation's richest state will splash its cash to combat global instability, grow its economy, build homes and ease the cost-of-living crisis.
Western Australian Treasurer Rita Saffioti's second budget on Thursday delivered a $2.5 billion windfall for the state for the current financial year, with a further $2.4 billion surplus projected for 2025-26.
It's the state's seventh consecutive operating surplus, which the Cook government says will help the state diversify and set its economy up for the future.
"This budget is being handed down at a time when the geo-political situation has been turned on its head," Ms Saffioti told reporters.
"We have unprecedented tariff policies coming out of the US, while the worsening conflict in the Middle East is creating significant uncertainty in global markets."
Ms Saffioti said the budget aimed to "fortify" WA against global shocks, invest in economic infrastructure and set the state up for a future with plenty of jobs.
The Cook government's measures include $2.7 billion to bolster economic growth and create jobs, with a focus on local manufacturing.
The financial blueprint also includes a further $1.4 billion has been allotted to boost housing supply, including measures to increase the construction workforce and help families access affordable homes.
Almost $1 billion will be spent in cost-of-living relief, including residential battery rebates and no-interest loans, and reduced public transport fares.
The measure also supplies free student travel and pensioner discounts, and student assistance payments for families.
Health and mental health services will receive $1.4 billion to increase the number of doctors and nurses working in the state and bolster infrastructure, creating more hospital beds.
A further $1.8 billion has been allocated to education and training to build more schools, upgrade others, boost before and after class care, and support regional learning.
Net debt is expected to grow to $33.5 billion at the end of the current financial year, $1.1 billion than forecast, and expand to $42.4 billion over the forward estimates.
The state is expected to stay in the black with operating surpluses between $2.4 and $2.8 billion predicted over the next four years.
Economic growth is forecast to be 2.5 per cent in the year ahead, with 0.5 per cent expected in 2024-25 and 3 per cent in 2026-27.
Ms Saffioti said WA was the most resilient state in the nation and remained its economic powerhouse, with manageable debt levels.
The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said.
The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers.
"We have an abundance of the minerals that the world needs and we've got the solar and wind capacity that the world is striving for," she said.
"What we need to do is invest in the infrastructure to support the aspirations of the private sector, and that's what we're very much tailored to."

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

West Australian

14 hours ago

• West Australian

Joe Spagnolo: Roger Cook moves on from Mark McGowan's Labor

It appears Roger Cook is going all out to ensure the public is aware there is a new sheriff in town, and that Mark McGowan is well and truly part of Labor history. The current Labor government, in terms of office and administrative personnel, has little resemblance to the one McGowan presided over. Cook has, for example, replaced his entire media team and appointed a new chief of staff since the March election. And there was further evidence of transformational Labor in Thursday's State Budget. Labor has finally stopped banging on about McGowan's Metronet, although project chief Rita Saffioti still resides over the remaining elements of the rail project — now eight years old — as Transport Minister and Treasurer. Instead Cook, keen to leave his own legacy, is embarking on what he and Saffioti call a 'poles, pipes, ports and wires' era, which will see billions spent on new infrastructure, enabling WA to hopefully begin a new era of diversification, and safeguarding itself against its reliance on iron ore exports and China's economy. If McGowan's catchcry was Metronet, Cook's and Saffioti's is diversification. From here on, Labor will begin its Budget sell to the public, and in doing so begin the sell of a re-elected Labor Government keen on reinventing itself and positioning itself for a fourth term of government by winning the 2029 State election. But reinvention comes with political risk. And we've seen that in this Budget, with Cook and Saffioti rolling the dice and deciding to shelve Labor's annual power bill credits — which, incidentally, McGowan commenced in 2020. Remember as a kid you would sit around a Christmas tree eagerly awaiting your presents? You either loved the gifts or were disappointed once you unwrapped the offerings. CCIWA chief economist Aaron Morey loved what was under Saffioti's 'Christmas tree', citing Taylor Swift as he applauded big spends in ports, energy and water. 'A bit like Taylor Swift, the Government is shifting to a new era of infrastructure spend. We're moving from the Roads Era to the Industrial Era,' Morey said. But welfare groups are not singing Swifty songs today. In addition to power and water hikes of 2.5 per cent, car licence charges have gone up 3.9 per cent and driver's licence fees have gone up 2.9 per cent. These are not huge increases by any means. But the optics of these increases aren't great for a government that on Thursday announced a forecast $2.5 billion surplus for this financial year and a forecast $10 billion in surpluses through to 2028-29. 'We were disappointed not to see a total freeze on increases in fees and charges, particularly utilities, electricity and water, but also on transport licenses,' Anglicare WA Acting CEO & Director of Services Philippa Boldy said on Friday. 'By increasing fees and charges, people are getting further behind instead of getting an opportunity to move forward. If we take more money out of the pockets of people that are already struggling for the essentials they need to live, we're not being fair with WA's growth and the economic strength.' Sure: the Government has softened the blow by announcing other initiatives such as the capping of public transport fares to one zone, saving some families and estimated $625 a year. But getting rid of a measure that shaves about $400 a year from household power bills in the midst of an ongoing cost-of-living crisis is a big call. What Cook is banking on is that West Australians will accept that investing in the future of WA will reap big benefits for the adults of tomorrow and generations to come. This is a Budget for the future. And in that sense Cook and Saffioti need to be applauded for recognising the fact that the rivers of gold — courtesy of iron ore exports to China — may well dry up into the future. But more needs to be done to help WA's vulnerable who right now aren't singing Swifty tunes, but belting out 'Under Pressure' along with Davie Bowie and Freddie Mercury.

West Australian

14 hours ago

• West Australian

Premier Roger Cook bound for the UK to push WA's case for AUKUS deal on the rocks

Roger Cook is heading to the UK this week to push WA's case for why the shaky AUKUS deal should proceed, amid fears Donald Trump will torpedo the $368 billion defence agreement. With Mr Trump ordering a review of the deal, the Premier — accompanied by his Defence Industries Minister Paul Papalia — will meet with senior British government and defence personnel to emphasise why AUKUS is important to not just Australia, the US and the UK, but to WA. The 2021 AUKUS security pact between the US, Britain and Australia, is supposed to deliver Australia up to five nuclear-powered submarines from about 2030. WA stands to be a major beneficiary, with Henderson — just south of Perth — scheduled to get a $20b boost to become a major defence hub where the submarines would be serviced and naval ship building further developed. About $8b of upgrades are also scheduled to happen at HMAS Stirling, which will become home to Australia's nuclear-propelled AUKUS submarines — Virginia Class SSNs. 'I'm confident that AUKUS is a great deal for the US and Australia and that the Trump administration's review will confirm that,' Mr Cook said. 'While it's only natural that a new administration does a review, there's no doubt we live in uncertain times, and that's why this UK mission is a priority for my Government.' At the G7 summit, Prime Minister Anthony Albanese was unable to get a one-on-one meeting with Mr Trump to discuss AUKUS after the US President left early to due to escalating the Middle East crisis. Mr Cook said the deal was in the interests of all three nations, adding any decision not to proceed with the agreement would be worrying. 'Obviously, it (AUKUS not proceeding) would be a concern not only for Australia but for the UK and a concern in relation to the US security attitude towards the geopolitical situation in this region,' he said. 'But, as has been observed by several people, the UK Government undertook its own review of AUKUS when it was elected. 'So, we are not too concerned.' During the five-day mission Mr Cook will hold a roundtable meeting in London with defence industry heavyweights and meet with UK Government officials, including Maria Eagle, Minister of State for Defence Procurement and Industry, and Lord Spellar, the UK's trade envoy to Australia. The Premier and Mr Papalia will also visit His Majesty's Naval Base, in Devonport which is the sole nuclear repair and refuelling facility for the Royal Navy. Regardless of AUKUS, Mr Cook was confident WA would play a significant in Australia's — and the US and UK's — defence industries. Mr Cook said UK Prime Minister Keir Starmer had, for example, recently announced a plan to build up to 12 additional nuclear-powered submarines over the next decade — and WA businesses could play a pivotal role in speeding up the construction of these military assets. 'There will still be significant opportunities for Western Australia's defence industry,' Mr Cook said. 'The US and UK will still need WA businesses, or WA manufacturers, to be part of the global supply chain for their own construction effort. 'There are three big opportunities for Western Australia. 'One is around maintenance and sustainment, the other is around frigate construction and the third is around being part of the international manufacturing supply chain for the construction of UK and US subs back in their countries.' Mr Cook said the State's move to renewables and clean energy would also be a selling point. 'This mission to the UK is a crucial part of my Government's plan to diversify the economy and ensure it remains the strongest in the nation,' Mr Cook said. 'We are doing everything we can to ensure that local businesses benefit from this once in a generation boom, and that's why strategic talks with decision-makers to sell our State to the world and garner investment is so important.'

ABC News

a day ago

• ABC News

Workforce shortages the key roadblock to state government's 'Made in WA' future

Economic experts have endorsed the WA government's future-focused budget, but warned a tight labour market could be its biggest roadblock. Thursday's state budget represented a shift in the government's focus, from transport projects and cost-of-living relief to infrastructure spending to kick-start diversification of the state's economy. About 40 per cent of government infrastructure investment over the next four years is earmarked for so-called enabling infrastructure, like electricity transmission and ports. "There's global economic turmoil," Treasurer Rita Saffioti said of the shift in focus. "We need to make sure we protect Western Australia and help Western Australia grow into the future. "We don't want WA to be collateral damage in global economic chaos." Raymond Da Silva Rosa studies what drives corporate investment at the University of Western Australia and backed the government's plans to try and increase productivity across the state. "We have a budget that's in surplus, we have an economy that's booming, we have a state government that has pretty much total control of the political agenda," he said. "So all the pieces are in place for the government to take some considerable risks that other governments can't afford to." One missing piece though, he said, is likely to be workforce — largely because the mining industry remaining successful leaves few workers for other industries. Chief economist for the Committee for the Economic Development of Australia, Cassanda Winzar, agreed. "There's a real argument to be had there for spreading some of the spend out and looking at what the biggest priorities are," she said. "So looking at some of that infrastructure around the energy transition, but also really looking at our housing situation. "If people can't get houses here there's not really going to be much investment and much desire for new industries to grow and develop here in WA." That backing from the private sector will be critical to making the government's vision a reality — because without businesses changing where and how they spend money, the shape of the economy won't change. Saffioti used an address to a business breakfast yesterday to encourage them to back the government's plans. "We're here, ready to work with industry, making sure we can deliver on our commitments," she said. Asked later in the day what would happen if businesses didn't change their spending, the treasurer said the combination of providing initial infrastructure and capital with long-term government purchase agreements was attractive to industry. "I think there's a lot of excitement, and just speaking to a few people today, I think that there's a real willingness," she said. Despite the broad support, Ms Winzar and Professor da Silva Rossa questioned the government's focus on manufacturing as a priority area, beyond a few niche industries. "We're a very high-cost state, labour-wise, in a high-cost country," Ms Winzar said. "Manufacturing across Australia is always going to be challenging. "It's particularly challenging in WA when we've got competing demands for labour from industries such as mining." Professor da Silva Rosa said there were strengths the government should try to leverage, which could be enhanced by boosting the quality of primary and secondary education. "The services sector is the one that dominates, so it's more about high-end services, like medical services, computers and the like, engineering services," he said. For its part, the opposition continues to argue payroll tax is an unnecessary roadblock to economic growth. Payroll tax is paid to the state government by all businesses whose wage bill exceeds $1 million each year, and is expected to bring in $6.2 billion next financial year. "WA businesses face a disincentive when they hire people," Shadow Treasurer Sandra Brewer said. "Our payroll tax, particularly for small businesses, are the highest in the country." She made the case alongside Jay Sidhu, who owns a land surveying business and said the tax had influenced his thinking as demand for his services grew. "Me and my business partners have to consider it before we even think of growing," he said. Ms Brewer said those costs were often passed directly on to customers. "So what we're saying is, the government could help housing affordability by looking at all of the taxes on business, and seeing where they can reform," she said. Asked at the business breakfast if a Labor government was ever likely to consider changes to payroll tax, Ms Saffioti said: "Every budget we consider everything." "But also it's about the approvals process," she said. "So we're working across the breadth of the economy to [see] what we can do in relation to supporting industry and business." Ms Winzar said that was another area which needed to be looked at closely to attract investment to the state. "What often happens in WA is we have really good small businesses and they're looking to expand, and they feel like they can't do it in WA because they don't have access to the right resources, to get the right labour," she said. "The tax and regulation settings don't encourage them to grow here, so they leave either for interstate or overseas. "We really want to encourage all those businesses to stay, to grow here, and other businesses to come setup here."