The McGowan Government has today released the September 2021 Quarterly Financial Results, which brings to book significant revenue collections.
The $4.4 billion surplus for the quarter largely reflects the timing of those revenue collections, particularly the receipt of the annual GST top-up grant of $2.1 billion, as well as the impact on dividends of the Bell Group settlement of $455 million from the Insurance Commission of Western Australia.
Strong economic conditions particularly in the labour and housing markets have driven stronger tax collections, with payroll tax $219 million higher and transfer duty up $152 million relative to a year earlier.
Continued strong performance of the mining sector combined with high iron ore prices has underpinned strong royalty collections in the September quarter.
The iron ore price averaged $US163.8 per tonne for the first three months of the financial year. However, volatility in the iron ore price has continued with the price falling from around $US220 per tonne in early July to $US118 per tonne by the end of September.
The McGowan Government’s infrastructure spending totalled $1.5 billion for the three months to September 30, 2021, almost 30 percent or $337 million higher compared to the same period last year.
Significantly, total public sector net debt fell to $30.3 billion at September 30, 2021, $3.2 billion lower than a quarter earlier, and a massive $13.4 billion below the level projected when the McGowan Government came to office.
The September 2021 Quarterly Financial Results Report is available from the Department of Treasury website at https://www.wa.gov.au/organisation/department-of-treasury
As stated by Premier and Treasurer Mark McGowan:
“The September 2021 quarterly results show Western Australia’s finances are on track to meet the strong results forecast in the Budget.
“Our solid financial position further highlights our world-leading response to the pandemic. Western Australia is the safest place to be with the greatest opportunities.
“The September operating surplus largely reflects the early receipt of revenue expected at the time of the Budget, particularly the annual GST top-up payment.
“Our strong economy is boosting revenue collections across the board. However, continued volatility in the iron ore price highlights why we must budget carefully.
“Net debt is now a massive $13.4 billion lower than expected when the Liberal National Government left office, highlighting our plan to return the finances to a sustainable footing is working. This has allowed us to respond to the pandemic and invest in our long-term future”.