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Western Australian Budget 2024-25
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  • 5 minute read
  • May 16, 2024

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The 2024-25 Western Australian State Budget was delivered by Treasurer Rita Saffioti. The Western Australian government has positioned the Budget as one that reflects the strong financial position of the state. The Budget outlines a series of spending measures across health, housing and homelessness, education and training, transport, community protection and diversifying and decarbonising the economy. It did not provide for any significant revenue raising initiatives that have not yet already been announced.

16 May 2024

In Brief

On 9 May 2024, Treasurer Rita Saffioti delivered the 2024-25 Budget for Western Australia (WA), the eighth State Budget for the WA Labor Government, and the minister’s first as Treasurer. 

The WA State Budget refers to the strong financial performance of WA, with a sixth consecutive operating surplus for FY24 and further operating surpluses predicted over the forward estimate period, driven by continued strength in the resources sector and WA economy. 

The Budget outlines a series of spending measures across health, housing and homelessness, education and training, transport (including the Metronet Project), community protection, and diversifying and decarbonising the economy.   

The Budget contains very few new revenue measures or changes to the State tax regime. 

In Detail

State Finances

The key highlights in relation to the State’s financial position include: 

  • A predicted operating surplus for FY24 of $3.2b, being the sixth consecutive surplus for the State;
  • Continued annual operating surplus positions of $2.4b to $2.8b forecast for FY26 to FY28; and
  • Estimated Total Public Sector Net Debt of $28.6b in FY24, which remains at less than 10% of Gross State Product (GSP) over the forward estimate period.

The Budget is based on the following key economic assumptions for the 2024-25 year:  Real State Final Demand Growth of 3.25%, Employment Growth of 1.75%, Unemployment Rate of 4.0%, Wage Price Index Growth of 3.75%, Perth Consumer Price Index of 3.0% and Population Growth of 1.8%. 

The Budget revenue forecasts are based on a conservative long term iron ore price assumption of US$75 per tonne. Key future variable assumptions on which the Budget is based also include the strength of the commodities sector (and flow on impact to payroll tax receipts), Federal grants and GST distribution and duties on property transactions in WA. 

Tax Measures

The key revenue measures outlined in the Budget include: 

  • An increase in the first home buyer stamp duty exemption threshold for established properties from $430,000 to $450,000 and an increase in the concessional rate threshold from $530,000 to $600,000 (providing an additional estimated average saving per property of $4,163, with a maximum additional saving of $7,182). The exemption and concessional rate thresholds on the acquisition of vacant land by first home buyers remains unchanged at $300,000 and $400,000 respectively. 
  • The removal of the per kilometre road user charge on electric, hydrogen, or plug-in electric vehicles registered in Western Australia, that was announced in the 2022-23 Budget which was supposed to apply from 1 July 2027 onwards. This charge has been removed following the High Court decision in the Vanderstock case, which determined such a charge to be unconstitutional as a duty of excise (which can only be applied by the Commonwealth). 

No other proposed changes in relation to stamp duty, land tax, payroll tax, or any other taxes have been announced as part of the Budget. 

Key Spending Commitments

The key expenditure commitment made by the Government as part of the 2024-25 Budget include:

  • A further $762m in cost-of-living relief, which includes a $400 electricity credit for all households and small businesses, student assistance payments, free public transport initiatives and a $100 increase to the Regional Pensioner Travel Card.
  • $1.1b additional spending on housing supply and affordability, including delivering almost 5,000 additional social homes, supporting homelessness services, support for affordable housing projects, a new Vacant Property Rental Incentive Scheme (being a $5,000 grant paid to homeowners to make vacant homes available for rental), the first home buyer stamp duty changes (discussed above) and incentives to increase the residential construction workforce. 
  • $3.2b additional spending on health services, including more doctors, nurses and beds, emergency access and ramping reduction, systems and mental health services.
  • $1.3b on education and training initiatives, including upgraded schools, training for the construction sector and additional free TAFE placements.
  • $1.8b to diversify and set up WA’s economy through investments in strategic industrial areas, reducing red tape for businesses, reforms to approvals processes and investment in water and power infrastructure. 

The Takeaway

The 2024-25 Western Australian Budget delivered in early May by Treasurer Rita Saffioti includes a series of spending measures across a number of sectors, and refers to the strong financial performance of the state. The Budget did not provide for any significant revenue raising initiatives that have not yet already been announced.

Contact us

If you would like to further discuss this alert, reach out to our team or your PwC adviser.

George Papadakos

Director, Tax, PwC Australia

+61 400 828 606

Email

Denise Tan

Senior Manager, Tax, PwC Australia

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