State Government delivers fourth straight year of declining debt

• Cook Government delivers a fourth straight year of declining net debt in 2022‑23
• Net debt now $16 billion lower than projected under the Liberals and Nationals
• Reduction in net debt has saved the State around $4.3 billion in interest payments
• Net debt as a share of the economy has halved over past four years

The Cook Government is continuing to lead the nation in slashing debt in Western Australia, with total public sector net debt declined for a fourth straight year during the 2022‑23 financial year.

The 2022‑23 Annual Report on State Finances, released by the Department of Treasury today, shows net debt at 30 June 2023 stood at $27.4 billion, $16 billion lower than projected under the Liberals and Nationals.

Over the past four years net debt as a share of the economy (measured by Gross State Product) has halved from 12.4 per cent to 6.2 per cent in 2022-23, the lowest of all States and Territories. The reduction in net debt under the WA Labor Government has saved the State around $4.3 billion in interest payments.

An operating surplus of $5.1 billion was achieved in 2022-23, higher than expected at Budget, given increased revenues due to ongoing strength in the Western Australian economy.

The operating surplus supported $9.2 billion of investment in infrastructure in 2022‑23, the highest level on record and almost 30 per cent higher than in 2021-22.

The record spend reflects $4.2 billion invested in METRONET rail and road projects, $2.2 billion in electricity and water infrastructure, $977 million on education and health projects, and $919 million spent on social housing and land development.

The Cook Government is continuing to invest in measures to ease cost-of-living pressures on Western Australians, including the minimum $400 Household Electricity Credit being delivered to every household this year. 

Reflecting the continued strength of the State's economy and the State Government's strong financial management, WA is now the only State or Territory with triple-A credit ratings from both Moody's and S&P Global.

Comments attributed to Treasurer Rita Saffioti:

"Our Government continues to deliver strong economic and financial management which has underpinned net debt falling to $27.4 billion, a hallmark of this Labor Government since it came to office. 

"Net debt is now around $16 billion lower than what was projected under the Liberal and National Government, which has saved our State around $4.3 billion in interest repayments.

"Lowering our debt levels is critical because it means we don't waste billions on interest repayments and can instead invest in better services and infrastructure for the community.  

"The dividends of our strong financial management are the investments we make in what matters such as the $715 million spent to provide cost of living relief to Western Australian households and small businesses, as well as the record $2.7 billion further investment into our health system in the recent 2023-24 Budget.

"No other State or Territory in Australia has consistently reduced debt, which is why we are now the only jurisdiction with a triple-A credit rating from S&P Global and Moody's."