ReGen Strategic
Today, the Cook Government handed down its first budget since the retirement of former premier and treasurer Mark McGowan. At 2pm this afternoon, the Deputy Premier and Treasurer Rita Saffioti MLA delivered the highly anticipated state budget for 2024-25. While many announcements had been publicly announced in recent weeks, today was an opportunity to see the detail.
In contrast to other jurisdictions around Australia, Western Australia continues to find itself in a strong fiscal position, forecasting a sixth consecutive surplus of $3.2 billion in 2023-24 and $2.6 billion in 2024-25, off the back of continued strong iron ore royalties and employment growth. The budget further shows that across 2023, WA’s domestic economy was the strongest of any state or territory and expanded by more than twice the pace of national growth. While other treasurers around the country are looking to defer projects or cut spending, the WA Government finds itself in the enviable position of progressing with record investment in infrastructure and cost-of-living relief.
Today's budget was the last to be handed down prior to the next WA state election, which will be held on 8 March 2025. In addition to key announcements on cost of living, housing, health and education, the budget outlined proactive steps to diversify the economy, with strong investment in energy transition and industrial lands for critical minerals processing. Recognising the importance of a streamlined and well-resourced regulatory process, the budget outlined much needed investment to speed up approvals for major projects and the establishment of an online portal for all environmental assessments. Additionally, the budget featured a suite of investments to meet the skills needs of industry during a period of strong demand.
Infrastructure
A new Strategic Industries Fund will be established to help prepare land for industrial use for strategic industrial areas (SIA), including for critical mineral processing and green hydrogen production. The $500 million fund will be used to deliver common-user and other enabling infrastructure at 13 SIAs across the whole of WA, including Browse, Boodarie, Burrup, Maitland, Anketell, Ashburton North, Oakajee, Kwinana, Rockingham, Kemerton, Shotts, Mungari and Mirambeena. The fund is in addition to the industrial lease incentive scheme announced in late 2023.
Subject to joint funding from the Commonwealth, $200 million has also been allocated for a new Critical Minerals Advanced Processing Common User Facility.
With continued investment into energy transition, $324 million will be allocated for long-term planning and procurement of long-lead transmission infrastructure. A further $148 million will support the development of common-use electricity network infrastructure in the North West Interconnected System.
A $373 million investment in ports encompasses a major rebuild and upgrade of berths and mooring equipment at Fremantle, Kwinana and Esperance ports, as well as a major new cargo wharf project for Dampier, and roadworks at Utah Point in Port Hedland.
Regional and remote airstrips around the state will receive $29.3 million for much needed upgrades with $21.3 million confirmed for Eucla, Carnarvon, Onslow, Albany and in the East Kimberley. An Aboriginal Community Airstrip Renewal Program will be allocated $8 million.
The reliability of WA’s water and wastewater networks will be strengthened through an $80 million investment to replace priority sections across a five-year program.
Another 50 locally-manufactured Standalone Power Systems (SPS) will be rolled out across the Mid-West and Goldfields-Esperance regions, in a budget announcement aiming to jointly create more local manufacturing jobs and deliver cleaner energy to remote areas. Additionally, local businesses will have access to an $8 million grant round to support the manufacture of wind turbine components.
Environment and Sustainability
Following recommendations from the Vogel-McFerran review, $36.4 million will be invested to fund additional resourcing in regulatory agencies and to streamline the approvals process. This includes establishing a new Environment Online system to provide a single point of submissions for approvals across government. It also includes $9.6 million to increase staffing levels, with the aim of accelerating approvals, with $14.1 million set aside to establish cross-sector triage teams within regulatory agencies.
The State Government has invested $73 million as part of its Plan for Our Parks. With an expansion of Western Australia's conservation estate, the funding will support Indigenous Land Use Agreements and management plans for soon-to-be-created parks and reserves. This year’s budget will also see $67 million invested in the Forest Management Plan 2024-33 to support forest monitoring and work with Traditional Owners to protect native wildlife and forest health. Additionally, those in bushfire-prone areas will be happy to see a $30 million boost to strengthen regional bushfire management.
The Zero Emissions Vehicle (ZEV) rebate will receive a further $5.2 million to meet demand. Established in 2022, the ZEV rebate has been paid out to 5,900 applications equalling $20 million. The ZEV schemes allows eligible vehicles to receive a $3,500 rebate.
Housing
Significantly, the 2024-25 budget will commit $840 million into social and affordable housing and homelessness initiatives. This includes $400 million to expand the Social and Affordable Housing Investment Fund. This will support affordable multi-residential housing across priority sites, including around METRONET stations, and will be delivered in partnership with both the community housing sector and the Commonwealth Government through Housing Australia.
An additional $92 million will support 120 homelessness services, including to increase case management capacity and provide more support for people experiencing homelessness.
A further initiative will see a $5,000 incentive offered to owners of vacant properties for listing on the long-term rental market. This strategy complements the Short-Term Rental Accommodation Incentive Scheme to switch properties from short stay accommodation to the long-term rental market. The scheme has been extended for a further six months.
The budget also promises to overhaul stamp duty concessions to help Western Australians buying their first home. No transfer duty will need to be paid on homes valued up to $450,000 (previously $430,000), and concessions will be available for those buying homes valued up to $600,000 (previously $530,000).
Cost of Living
Headlining a $762 million cost-of-living relief package was a new $400 electricity credit, to be paid in two instalments. The Regional Pensioner Travel Card has received a funding boost of $20 million, which will result in a $100 increase to the value of each card per year. Families, students, carers and pensioners will receive further assistance in various forms, including student payments, assistance payments and subsidies.
Regional residents are set to benefit with the Regional Airfare Zone Cap (RAZC) Scheme receiving a $64.6 million boost in funding. The RAZC scheme caps airfares for regional residents at $199 or $299 one-way on Perth return flights for personal travel. The boost in funding will extend the scheme until the end of 2025. More than quarter of million capped airfares have occurred since the scheme was established in mid-2022.
Foodbank, OzHarvest and SecondBite will share funding of $1.5 million to provide much-needed food relief to vulnerable families across WA.
Other sectors
In addition to major reforms for business, headline announcements across the education, early childhood, health and mental health, and prevention of family violence sectors have been announced in this budget.
New builds and improvements to infrastructure at public schools across the state, as well as three new public primary schools, make up a $1.6 billion investment in public education. The State Government will also invest $15.6 million, with Minderoo investing $19 million, in a 10-year Early Years Partnership to achieve better outcomes for children in the critical stages of child development.
A record $3.2 billion investment in health included a $260 million investment into mental health and alcohol and other drugs services, $1.2 billion for public hospitals, $839 million in health infrastructure and $405 million for regional healthcare services.
A further $54 million will support Family and Domestic Violence Response Teams to expand operations to operate seven days a week. Other new investments in this sector include funding to operate a new FDV One Stop Hub in the metro area and bolstered rapid rehousing programs.