The Western Australian government has announced its latest budget, which eliminates the $400 electricity credit for households despite a budget surplus of $2.5 billion. This decision comes as the state faces increasing debt, projected to reach $42 billion by the end of the decade. This budget marks the ninth iteration under the current Labor government and reflects a new approach to the state’s economic priorities.
The removal of the electricity credit is expected to exert additional financial strain on households. Many residents, such as retired school principal Laura West, have expressed disappointment, describing the removal as a significant setback. On average, households may see their costs rise by about $348 compared to last year, with expenses from power, water, and vehicle costs expected to increase.
Shadow Treasurer Sandra Brewer has critiqued the budget, claiming it misrepresents financial circumstances by excluding the electricity credit from its calculations. In contrast, Treasurer Rita Saffioti aims to reduce reliance on trade with China by promoting local manufacturing, stating the intention is to fortify the economy.
A notable portion of the budget allocation is directed towards health services and addressing the housing crisis in the state. Despite the pressing issues, some community leaders like Rachel Siewert from the Western Australian Council of Social Service have acknowledged beneficial measures, including reduced transport fares and rent relief programs aimed at assisting those in need.
While efforts to reduce state debt were previously promised, the current trajectory suggests a rise in debt alongside the state’s growth. The anticipated annual interest on this debt stands at a staggering $2 billion. Saffioti maintains that the budget will establish a foundation for the future, aiming to improve the state’s overall economic landscape.