The McGowan Labor Government is delivering on its commitment to keep household electricity and water charges tied to the rate of inflation and limit cost of living pressures for Western Australian households.
This year, due to the State election, the 2021-22 Budget will be handed down in September, therefore the Government is required to release updated household tariffs, fees and charges prior to the start of the new financial year.
From July 1, 2021, the household basket of fees and charges will rise by 1.6 per cent, below the projected Consumer Price Index of 1.75 per cent in 2021-22. The cost to Government of keeping fees and charges low is expected to be $377 million.
During the election, the McGowan Government committed to ensuring increases to electricity and water charges were capped at inflation.
As promised these have been limited to the projected inflation across the forward estimates, including 1.75 per cent in 2021-22.
There will be no increase in Transperth or Transwa fares in 2021-22, benefiting those in metropolitan Perth and regional areas.
The McGowan Government will also deliver its election commitment for a two zone fare cap on Transperth fares, beginning on January 1, 2022, saving some households up to $8.20 per one-way fare for every trip. This benefit is not captured in the household basket, which assumes a two-zone fare.
The delivery of this commitment means a household living, for example, in Dawesville will potentially save more than $3,000 per year.
The Emergency Services Levy (ESL) will be $28 lower in 2021-22 for the average household compared to 2019-20, despite a 4.3 per cent increase, following the McGowan Government’s decision to pass on the benefit of lower gross rental values (GRVs) in 2020-21.
The ESL for the average metropolitan household will therefore be $283 in 2021-22 compared to $311 in 2019-20.
Motor vehicle related charges will rise by a total of three per cent.
Overall, the basket of charges for the average household will increase by $99.37 or less than 30 cents per day.
Compared to pre-COVID-19 levels, household charges will be just 0.6 per cent higher in 2021-22 compared to 2019-20, given the continued benefit of passing on lower GRVs and the freeze on household charges.
Over the past three years, the McGowan Government has spent $1.9 billion to keep household fees and charges low and provide relief through the COVID-19 pandemic.
It was also announced today that the Pilbara Ports Authority charges at Port Hedland port will increase by 25 per cent, which combined with revised export volumes is expected to raise around $195 million over the next four years.
Small business and charity electricity tariff increases for Synergy and Horizon Power customers will be reduced to also align with inflation of 1.75 per cent at a cost to Government of $45.1 million.
As stated by Premier and Treasurer Mark McGowan:
“My Government is delivering on its election commitment to slash public transport fares and limit increases to household fees and charges.
“In order to put more money back in the pockets for WA households, we are spending $377 million to keep the average household basket of fees and charges below CPI in 2021-22.
“This builds on my Government’s $600 Household Electricity Credit last year which saw Western Australian households’ fees and charges reduce, on average, by 10.4 per cent for the ‘representative’ household.
“Limiting increases to household fees and charges has only been possible due to my Government’s strong and sensible financial management.
“Importantly, this includes our promise to cap public transport fares to the cost of a two-zone ticket no matter where your journey takes you.
“For as little as $4.90 for a cash fare, a person could travel from Joondalup to Mandurah.
“This important initiative will save some commuters thousands each year and will help ease congestion on our roads.
“The former Liberal National Government never contained household fees and charges to inflation in any year over their two terms, with costs for households $2,100 higher each year by the time they left office.”