The McGowan Labor Government has delivered another strong surplus that will be used to provide all Western Australian households a $400 Household Electricity Credit and fund initiatives to diversify our economy, create local jobs and build WA's future.
The 2022-23 Budget delivered today highlights Western Australia's strong economy and finances continue to lead the nation.
The Mid-year Review projected the 2021-22 operating surplus to be $2.4 billion. The surplus has now been revised up to $5.7 billion, reflecting the impact of strong economic activity and higher commodity prices.
A $1.6 billion surplus is forecast in 2022-23, with surpluses expected across the forward estimates.
The State's net debt is expected to decline for a third consecutive year to $29.9 billion in 2021-22 - the first time since 2015 that net debt has been below $30 billion.
Net debt is now expected to be $13.7 billion lower than the $43.7 billion projected under the last Liberal National Government.
The McGowan Government's strong budget position will fund key initiatives, including:
- a further record investment of $2.5 billion in the State's health and mental health systems;
- easing pressure on emergency departments, expanding the health workforce and improving health infrastructure.
- cost of living support for all Western Australian households;
- with a $400 Household Electricity Credit from July 2022, costing $445 million.
- an additional $1.6 billion in COVID-19 response measures;
- taking the State's total investment to $11.2 billion for funding frontline services and supporting WA businesses and households (such as free Rapid Antigen Tests).
- an extra $652 million for climate action and environment initiatives to fund WA's low-carbon future;
- including $500 million extra for the Climate Action Fund (taking the total to $1.25 billion) and almost $60 million to accelerate the use of zero emission vehicles.
- a $1.3 billion investment to diversify our economy;
- with support for international tourism, events and international education as international borders reopen;
- investments to continue to grow existing and new industries, such as boosting the Investment Attraction Fund and Industrial Land Development Fund; and
- job-creating, economic infrastructure projects, including ports and roads.
- $1.2 billion for early repayments of existing debt inherited from the previous Liberal National Government, and reducing the State's exposure to future interest rate increases;
- saving an estimated $132 million in interest payments over the next four years.
The 2022-23 Budget includes a further record $33.9 billion investment in infrastructure, including in hospitals, schools, rail, roads, ports and projects in other key areas.
This includes a record $12 billion in the regions to set up WA's long-term future and ensure no matter where you live, all Western Australians have the opportunity to thrive.
For more information, visit https://www.ourstatebudget.wa.gov.au
As stated by Premier and Treasurer Mark McGowan:
"My Government's stable and responsible budget management continues to deliver the nation's best financial outcomes because of our safe handling of the pandemic.
"Our soft landing through the Omicron wave has resulted in our strong economic and financial position and helped deliver another record surplus.
"The strong surplus enables us to deliver on what matters most to Western Australians - securing jobs and a strong economy, cost of living support, investing in our health system and building WA for the future.
"All WA households will benefit with a $400 electricity credit - the second credit delivered by my Government - to drive down household living expenses this year, due to global events.
"We have also delivered a further record investment in our health system, to fund a massive program of works to diversify our economy to create jobs, support businesses and set WA up for the long term.
"We are also paying down debt faster, with a third consecutive year of decline - reducing our exposure to higher interest costs.
"Debt is almost $14 billion lower than projected when Labor came to Government - a stark contrast to skyrocketing debt levels under the previous Liberal National Government.
"We continue to have the strongest finances in the country, with operating surpluses in every year of the forward estimates and the lowest debt trajectory of all jurisdictions.
"This strong budget position will enable us to continue to deliver for Western Australians in the long term."
