WA Budget remains strong, setting up the State for the future

• Cook Labor Government delivers sixth consecutive operating surplus
• Surplus helping fund historic $11.4 billion investment in infrastructure
• Total public sector net debt at 30 June 2024 down to $28.2 billion
• Net debt as a share of the economy has almost halved in five years
• Treasury estimate Western Australia has saved around $4.6 billion in interest payments due to lower debt levels under the Cook Government

The Cook Government has released the 2023‑24 Annual Report on State Finances (ARSF), showing that Western Australia's financial position continues to be the strongest in the nation.

The final operating surplus figure of $4.5 billion for 2023‑24 was $1.3 billion higher than the estimated actual in the 2024‑25 Budget, due to higher than expected revenue (up $872 million or 1.9 per cent) mainly due to higher iron ore royalties, transfer duty and sales of goods and services, partly offset by delayed Commonwealth funding for transport infrastructure, and lower than expected expenses (down $456 million or 1.1 per cent) largely reflecting changes in the timing of expenditure.

The operating surplus is a critical source of funding for the State's Asset Investment Program (AIP), which totalled a record $11.4 billion in 2023‑24. This is $2.2 billion or 23.5 per cent higher than the previous record investment in 2022‑23, reflecting the large number of projects now in the delivery phase.

Major areas of infrastructure investment included housing and land, transport, electricity and water, and health and education projects across WA.

Total public sector net debt at 30 June 2024 was $28.2 billion, $463 million lower than estimated in the 2024‑25 Budget and $1.2 billion lower than forecast in the 2023-24 Budget.

Operating surpluses and lower net debt reduce interest rate risk for the State, provide a buffer against future shocks, and further underline Western Australia's strong credit rating. Western Australia remains the only State or Territory with triple‑A credit ratings from both Moody's and S&P Global.

The 2023‑24 ARSF is available at: https://www.wa.gov.au/organisation/department-of-treasury

Comments attributed to Treasurer Rita Saffioti:

"Our Government has continued its focus on strong financial management, which has allowed us to invest in what matters for Western Australians, including cost of living support, boosting the supply of housing, major economic infrastructure and delivering better services such as health and education.

"We have invested a record $11.4 billion in infrastructure this year that will continue to support the State's economic growth and meet the needs of our rapidly growing population, setting Western Australia up for decades to come.

"Strong business and government investment, combined with resilient household consumption has made our economy and jobs market the strongest in the country.

"Our strong financial management has underpinned Western Australia regaining its triple-A credit rating, the only State or Territory to hold this from both of the major international rating agencies.

"WA's economic and financial position is the envy of the nation, but with global uncertainty surrounding economic growth, WA's strong position would be at risk under the inexperienced and chaotic Liberals and Nationals."