Growth, ore prices to swell WA budget surplus to $3.7b

Western Australia's government will be $400 million better off this financial year, with a healthy budget surplus off the back of a thriving economy and robust iron ore prices.

In the mid-year budget review, the Cook government projected the state's finances to end $3.7 billion in the black for 2023/24, up from $3.3 billion forecast in May.

Treasurer Rita Saffioti said economic growth was 3.5 per cent in 2022/23, the strongest in nine years.

"The Cook Labor government continues to deliver strong and sustainable financial results, with an outlook for unbroken operating surpluses and record investment in infrastructure for the state's future, while continuing to pay down debt," she said on Tuesday.

WA Treasurer Rita Saffioti.
Treasurer Rita Saffioti hailed WA's economic growth of 3.5 per cent, the strongest in nine years.

Net debt is expected to be $27.2 billion at June 30, which is $2.2 billion lower than forecast in the budget and the fifth consecutive annual decline.

An increase in the treasury's forecast price for iron ore from $74.1 per tonne to $104.2 has contributed to WA's healthy fiscal position.

Price volatility meant the state's forecast for lithium royalties dropped as the commodity's market value fell.

“Our strong financial management puts us in an enviable position, where we continue to invest back into the community with record spend in our infrastructure plus investment in key services," Ms Saffioti said.

Major investments in the review include $2.8 billion for a Perth desalination plant and more than $700 million to upgrade WA’s main electricity network.

Ms Saffioti said WA also had $1.4 billion for other cost pressures and increases in other projects including $180 million for the Bayswater train station and road projects jointly funded with the Commonwealth.

A further $2.8 billion has been allotted for public sector wage rises and more than $600 million was earmarked for health.

Services supporting children in care and homeless people will receive funding boosts, along with family and domestic violence initiatives and a range of measures to increase housing supply.

Shadow treasurer Steve Thomas said the "biggest fiscal boom in our nation’s history" was based on good luck "thanks to the iron ore royalties", and not on good financial management.

He called for more measures to combat the rising cost of living and support vulnerable households "struggling to put food on the table and keep the lights on".

“The Cook Labor government has an even greater capacity to help Western Australian families ... and should do so immediately," he said.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store