WA surplus gains 200 million a fortnight after budget handed down
Western Australia has officially recorded the biggest surplus in Australian state budget history after it was revised upwards to the tune of $200 million just two weeks after being handed down.
The 2020-21 state finances annual report released late Friday reveals WAâs operating surplus for that year hit $5.8 billion.
WA Premier and Treasurer Mark McGowan delivers the stateâs 2021 budget.Credit:Peter de Kruijff
In budget papers released on September 9, the government estimated the surplus for last financial year had hit $5.6 billion.
This figure means WA has recorded the biggest-ever surplus recorded by an Australian state government. The past record was set by New South Wales with $5.7 billion in 2016-17, which was driven by property taxes.
WAâs budget has largely been driven by record iron ore royalties but the annual report said the extra $200 million reflected ârevised accounting treatmentâ of Native Title settlements.
Next yearâs surplus was forecast to be $2.8 billion, but with iron ore prices plunging below the US$121.30 per tonne average predicted for 2021-22 in the budget, that may take a hit.
Infrastructure investment reached $5.8 billion in 2020-21, the highest since 2013-14.
Premier Mark McGowan said the stateâs financial position was strong and on a sustainable footing, despite the global pandemic.
âOur financial position highlights our safe and strong management of COVID-19, and has
delivered the best economic and financial outcomes in Australia â" and possibly the world,â he said.
âWhile this is a record operating surplus, it is important to remember that the stateâs revenue base is highly volatile, as evidenced by the recent sharp fall in iron ore prices.â
Shadow treasurer Steve Thomas said the stateâs once-in-a-lifetime financial fortunes were the biggest lost opportunity WA had ever seen and blasted the government for not bringing down debt or addressing problems such as homelessness and hospitals.
âThe government is expecting to have budget surpluses totalling $15 billion over the five years from 2020-21 to 224-25, an unprecedented mountain of wealth,â he said.
âOver that period however the total net debt of the state will not decline. Instead, it will rise from $33.5 billion at the end of last financial year to $36 billion in 2024-25.
âAt a time of wealth previous governments could only dream of the McGowan Labor government will have $15 billion in surpluses and still go out and have to borrow another $2.5 billion.
âHow can we have a health crisis, a housing crisis and a skills crisis after 30 months of boom that has poured rivers of gold into Laborâs treasury?â
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