Rita Saffioti confirms $2.4b Budget boost thanks to iron ore, gold royalties but insists WA GST deal necessary

Treasurer Rita Saffioti has confirmed a $2.4 billion boost to State coffers thanks to a bonanza of iron ore and gold royalties but insists WA still needs its lucrative GST deal to make ends meet. The State Budget mid-year review will this week show a $2b-plus surplus for this financial year, and future multi-billion-dollar surpluses on the horizon, in addition to billions more in royalties. It’s in stark contrast to Jim Chalmers’ Federal Budget, now headed to a $30b deficit and the budgets of other States and Territories bathed in red. But while the new budget forecasts spell good news for WA’s bottom line, the news isn’t so good for West Australians doing it tough under the weight of rising living expenses. Ms Saffioti in an interview with The Sunday Times all but ruled out a return to power bill rebates, and said she was disappointed that the Reserve Bank of Australia had not been made further interest rate cuts this year. Despite having a set of books the envy of Australia, Ms Saffioti is adamant that without billions in GST dollars — $8b this financial year — WA’s bottom line would look incredibly different, and the government would struggle to keep up with the huge infrastructure demands of a growing State. Ms Saffioti just last week met with the Productivity Commission, which is reviewing the 2018 GST deal, to again lay out WA’s case for a no less than 75¢ GST floor. “Despite our enviable economic position, it’s vital we don’t give up our fight to hold onto WA’s fair share of the GST — despite what those on the east coast might say,” Ms Saffioti said. “Any changes to the deal would risk ripping $6b out of the WA economy, undermining our ability to invest in the vital economic infrastructure that powers our nation.” Across the forward estimates, to 2028-29, royalty income has been revised up by $2.4 billion. This reflects an increase from the 2025-26 Budget forecast of $8.245 billion — to $9.97 billion in the mid-year Review — with the remainder spread across the rest of the forward estimates. Ms Saffioti said iron ore revenue was up $1.6b and gold revenue was up $799 million. “We will be investing this additional revenue straight back into our health system and measures to boost housing supply,” she said. The fresh forecasts strike a positive tone for the State’s bottom line but West Australians doing it tough will find little respite. The review will include already-announced measures to increase regional airfare caps the the State’s rent relief program for tenants struggling most, while she reiterated that public transport fares from next month would be capped. She said this would save commuters an additional $625 a year. But Ms Saffioti was non-committal on a power rebate for struggling West Australians, despite new figures obtained this week by The Sunday Times, showing thousands of West Australians are struggling to pay their power bills. Synergy data shows 32,043 residential customers had so far this year been forced into payment plans to pay their accounts — an increase of nearly 9000 customers from the same period in 2024. In all, Synergy is owed $127.7 million in unpaid bills — $9 million more than last year. Ten thousand Synergy residential customers and 804 business customers were referred to debt collectors. Instead, Ms Saffioti shone a light on the Reserve Bank of Australia, for not delivering more interest rate cuts in 2025. “I was hoping for more interest rate cuts at the end of the year, and that hasn’t happened,” she said. “Many people were anticipating further rate cuts. “Like everyone, of course we want the RBA to reduce interest rates and mortgage repayments for WA households. “Unfortunately, across the country, inflation has been more persistent than most economists had forecast, and what the RBA was looking for in order to reduce interest rates further. “I still hope that interest rates don’t go up.” The Treasurer said the mid-year review would show no major changes to key economic forecasts in the June Budget which forecast a $2.4 billion surplus this year and net debt at $38 billion, rising to $42 billion in three years’ time, saying there would be “no major surprises”. She defended WA’s rising net debt. “Compared to every other state, our debt levels are far more sustainable,” Ms Saffioti said. “And as a result, we are retaining our AAA credit rating. “Despite significant global headwinds, Western Australia’s economy remains the strongest in the nation. “Net debt at 30 June 2025 was more than $13.5 billion lower than projected under the previous Liberal-Nationals Government. “Our government’s strong financial management means we are able to continue to invest in what matters most to Western Australians, particularly bolstering our record investment in health and housing.” She said WA was in a strong financial position. “Western Australia’s domestic economic growth has continued to outpace the nation over the last year, driven by strong employment, business investment and household consumption,” Ms Saffioti said. “This includes the highest rate of growth in discretionary spending in the country at 3 per cent across the year to September, compared to the national average of 1.1 per cent.”