Winners and losers:What WA’s booming budget surplus means for you

Western Australia’s treasurer Mark McGowan has announced his second budget,with significant sections dedicated to healthcare and cost of living expenses.

But with the winners of this budget,who have millions if not billions of dollars invested in direct action,there are also areas that have not fared so well.

WA’s health system will get a major funding boost.

WA’s health system will get a major funding boost.Matthew Absalom-Wong

Winners

Mental health services:A record $1.3 billion has been allocated for WA’s mental health,alcohol and other drug services,representing a 13 per cent increase on the last budget.

Health infrastructure: The budget includes a $223.4 million investment in health infrastructure across the state. This will mean $1.6 billion invested over the next four years (on top of the $1.8 billion set aside to construct the new women and babies hospital.) Geraldton Health Campus has been promised an additional $49.4 million towards upgrading the facility,bringing the total to $122.7 million.

Emergency care:There will be $158.3 million invested in health services in WA’s regions. This includes $30.1 million for 18 additional paid paramedics and six additional ambulances in regional WA. Across the state,a new $251.7 million package for a major reform program to improve access to emergency care and address the systemic causes of ambulance ramping will also be implemented.

The state government is promising more paramedics.

The state government is promising more paramedics.Supplied

Child protection services:An additional $114 million will be put into the child protection system and supporting services,to protect vulnerable children and their families and steer at‑risk children away from the justice system.

Fremantle Prison: The budget has allocated $12.6 million to preserve and enhance the world heritage site,taking the total investment in the project to $14.2 million.

Schools: Over four years,$31.9 million will be given to provide extra assistance to those students who need the most help to improve,particularly with literacy and numeracy skills.

Ports and trade: The capacity of the port of Port Hedland will grow,with $78 million going into the Lumsden Point development. The port in Geralton will also benefit from $332 million.

The port of Port Hedland is a winner in this year’s budget.

The port of Port Hedland is a winner in this year’s budget.Krystle Wright

Rottnest Island: Energy and water infrastructure on Rottnest Island will undergo a $62 million upgrade,and renewables will then power 75 per cent of the island’s energy needs.

Households: Each household will get a $400 credit towards their power bills,resulting in a 3.8 per cent decrease in household charges. A small cavieat is that other fees and charges are increasing. This is the third consecutive year of below CPI increases in household charges. WA’s free RAT program also saved households an additional $150.

Property developers:A 50 per cent land tax concession for new build-to-rent projects,100 per cent transfer duty rebate for eligible off-the-plan apartments (costing below $500,000),$19 million to increase residential land supply in Kalgoorlie and Karratha,and $41 million for tax reforms will all benefit developers.

Losers

Social housing: The number of people on the social housing waitlist has increased to more than 18,000,but significant delays on housing materials have meant people are waiting longer to get into a property. A density bonus incentive for new multi-storey developments that include a minimum of five per cent social housing will be offered to help get people into homes faster,but there are no guarantees.

Electric cars: While $60 million has been allocated towards supporting the use of electric vehicles in WA,a 2.5 cents per litre road user charge will kick in from July 1,2027.

While people who purchase an electric car will get a rebate,a new tax to cover the costs of WA’s charging station network will be introduced by 2027.

While people who purchase an electric car will get a rebate,a new tax to cover the costs of WA’s charging station network will be introduced by 2027.Bloomberg

The arts sector: With the plans for a film studio in Fremantle on hold,there is nothing in this year’s budget to match a project of this scale,which would have attracted international attention. However,there will be a $10 million extension to the Getting the Show Back on the Road program,and His Majesty’s Theatre and Perth Concert Hall have received funding.

Future generations: Although this budget has made headway in diversifying the economy through committing $1.3 billion to investing in clean energy,space industries and more,WA’s economy is still heavily reliant on iron ore,with no solid plan on how this will change. McGowan admitted iron ore prices are inherently volatile.

Road users: Due to COVID-19 supply disruptions and a lack of workers,Main Road’s construction costs have escalated and it has therefore “refined its pipeline of works.” Adjustments have needed to be made to which projects are focused on first,which could result in delays for road users.

Climate activists: Although $500 million has been promised for the Climate Action Fund,there is no detail into where this money will be spent. On top of this,$52 million is being handed out for the construction of a supply base and a chemical processing and storage facility to support oil and gas operations in the Browse Basin.

Holly Thompson is a journalist with WAtoday,specialising in education.

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