Key Takeaways
- Western Australia’s 2024‑25 budget delivers a $3.5 billion surplus, bolstered by projected $9.3 billion GST revenue and the nation’s “most affordable debt” ($34.5 billion by June 2025).
- Cost‑of‑living relief totals about $1 billion, highlighted by a $100 fuel credit for every driver’s licence holder and $90 million in student assistance payments.
- Housing receives a $4.7 billion boost, including land‑development funds, $2 billion for 34,000 new homes (11,000 for first‑time buyers near transit), and expanded stamp‑duty concessions.
- Social and affordable housing is slated for $1.5 billion, aiming to add thousands of rental units and refurbish existing stock.
- Health spending reaches a record $9 billion over four years, funding new hospitals, a Perth‑based cancer centre, and an additional $500 million to the Building Hospitals Fund.
- The government will trim 1,500 back‑office public‑service roles to redirect funds toward priority areas, a move criticised by the opposition as insufficient amid ongoing cost‑of‑living pressures.
Budget Overview and Fiscal Position
Western Australia’s third budget under Premier Roger Cook and Treasurer Rita Saffioti presents a strong fiscal picture, recording a $3.5 billion surplus. This surplus is underpinned by an expected $9.3 billion inflow from GST revenue next year and leaves the state with the “most affordable debt in the nation,” projected to fall to $34.5 billion by 30 June 2025—roughly $4 billion lower than earlier forecasts. The private sector continues to drive growth, contributing 86 percent of the state’s domestic economic expansion, which has risen 27 percent over the past five years. Premier Cook emphasized that the budget is built on simple goals: sustaining a strong economy, delivering jobs, improving health and housing, and providing tangible cost‑of‑living relief for Western Australians.
Cost‑of‑Living Relief Measures
A centrepiece of the budget is a nearly $200 million package aimed at easing rising petrol prices, forming part of a broader $1 billion cost‑of‑living relief initiative. The most visible element is a $100 fuel credit that will be issued to every holder of a Western Australian driver’s licence, effective from 1 July. In addition, families with school‑aged children will receive targeted student assistance payments: $150 for each child in kindergarten or primary school and $250 for each child in high school, amounting to $90 million in total. The government estimates that a household with two children could receive more than $2,000 in combined assistance through these measures.
Fuel Credit and Student Assistance Details
The fuel credit will be administered automatically through the state’s transport licensing system, ensuring that all licence holders—approximately 1.9 million individuals—receive the $100 payment without needing to apply. Student assistance will be distributed via the Department of Education, with payments made directly to eligible families at the start of each school term. Together, these initiatives are designed to offset immediate pressures from fuel prices and education‑related expenses, providing quick‑acting relief while the government works on longer‑term affordability strategies.
Free Public Transport Initiatives
To further reduce household outlays, the budget allocates $70 million for free public transport programs. Starting in the coming financial year, students will travel to and from school at no cost, and all residents will enjoy free public transport on Sundays. Seniors will also benefit from complimentary travel during off‑peak periods and weekends. These measures aim to encourage modal shift away from private vehicle use, lower transport costs for vulnerable groups, and support the state’s broader sustainability objectives.
Housing Investment and First‑Home Buyer Support
Housing is a major focus, with the government committing $4.7 billion to the sector over the budget period. More than $1 billion will fund land development, power, water, and ancillary infrastructure to unlock new residential sites. In partnership with the federal government, $2 billion is earmarked for the construction of 34,000 new homes, of which 11,000 are designated for first‑time buyers located near metro stations or in emerging regional corridors. To stimulate demand, the stamp‑duty concession for first‑home buyers will rise from $500,000 to $600,000, with full concessions available on homes valued up to $800,000 and on vacant land up to $450,000. The First Home Owner Grant property cap will also increase from $750,000 to $800,000. Although current market data show fewer than 320 homes under $600,000 and 52 vacant land parcels under $450,000 in Perth, the government anticipates these measures will assist roughly 25,000 first‑home buyers.
Social and Affordable Housing Expansion
Beyond market‑oriented incentives, the budget allocates $1.5 billion to social and affordable housing, targeting thousands of rental units for low‑ and moderate‑income households. The State Government will partner with the Commonwealth through the Housing Australia Future Fund to deliver 1,426 new dwellings. An additional $452 million will fund 165 new social homes, refurbish 215 existing properties, acquire land for future social‑housing projects, and increase investment in maintenance and tenancy support. This combined effort seeks to alleviate the acute shortage of affordable accommodation that has contributed to the state’s housing stress.
Health‑Care Funding and Hospital Expansion
Health receives a record $9 billion investment over the next four years. Funds will support the construction and acquisition of new hospitals, addition of hundreds of beds, and expansion of capacity across the public health system. A highlight is the planned Perth‑based cancer facility, modelled on leading centres in Sydney and Melbourne, which will integrate treatment, research, and clinical trials. The Building Hospitals Fund will receive an extra $500 million, bringing its total to $2 billion for 2026‑27 and $5.5 billion over the four‑year horizon. Treasurer Rita Saffioti stressed that these investments are essential to maintaining Western Australia’s reputation for high‑quality health services amid population growth.
Public‑Sector Workforce Changes and Political Response
Despite the strong fiscal position, the budget announces the reduction of 1,500 government positions, primarily in back‑office functions. Treasurer Saffioti explained that the adjustments reflect shifting priorities and the need to reinvest savings into frontline services such as health, housing, and cost‑of‑living relief. She asserted that the government sought to balance fiscal responsibility with community needs, noting that “you can always do more, but we’ve done our best to support families.” The move is intended to create a more agile public sector capable of directing resources where they are most needed.
Opposition Critique and Overall Assessment
Opposition Leader Basil Zempilas countered that the surplus and spending plans do not translate into meaningful relief for households grappling with the cost‑of‑living and housing crises. He dismissed the $100 fuel credit as a “smoke screen” that fails to assist those living in cars or on the streets, arguing that it pales in comparison to rising water, electricity, and vehicle registration costs. Zempilas contended that the budget overlooks the fundamental pressures faced by many Western Australians and that little has changed for those experiencing severe financial strain. While the government highlights its record investments and targeted relief, the opposition’s critique underscores the ongoing debate over whether current measures are sufficient to address deep‑seated affordability challenges in the state.