The state government has posted a record $2.3 billion net operating surplus for the 2006-07 financial year, up almost two per cent on the previous year's record, and announced a new housing affordability package for low income earners.
The state government has posted a record $2.3 billion net operating surplus for the 2006-07 financial year, up almost two per cent on the previous year's record, and announced a new housing affordability package for low income earners.
Releasing the government's annual report on state finances for 2006-07 today, Premier Alan Carpenter said the record surplus was the result of the state's very strong economic performance and sound financial management.
The final surplus was nearly double the $1.2 billion forecast made in May last year when the 2006-07 budget was handed down.
The surplus was larger because revenue rose much faster than the treasury had anticipated while spending rose less than had been anticipated.
Chamber of Commerce and Industry of WA chief executive John Langoulant said the increased surplus indicated the amount of wealth local business was generating, and repeated his call for payroll tax cuts.
"The government's bulging coffers demonstrates it has the capacity to further reduce tax and stamp duty rates in the near future," Mr Langoulant said.
"Disappointingly, the Government has given no encouragement to taxpayers or business that it intends to act with any haste to bring tax rates down."
"Western Australia remains the highest taxing state per capita and WA's deteriorating tax competitiveness has to be addressed as a matter of urgency. Instead the Government remains fixated on the need to retire debt."
The state finances report showed that general government revenue totalled $17.45 billion, up 7.7 per cent on the previous financial year but less than the 14 per cent growth recorded the year prior.
Taxation revenue rose 10 per cent on the previous year to $5.7 billion.
Mining revenues were down $79 million, or 3.5 per cent, on the previous year. This result reflected the net impact of lower iron ore volumes due to impact of cyclones, lower volumes of liquefied natural gas and liquefied petroleum gas due to unplanned shut-downs, and a higher than forecast $A/$US exchange rate
Net debt reached its lowest level on record, standing at $2.98 billion as of June 30.
Treasurer Eric Ripper said the government was able to reduce its debt levels while delivering a record $5.1 billion capital works program.
The premier used today's release to unveil a new $238 million housing affordability package targeting low income, public housing, crisis accommodation and land supply in regional areas.
The package will include 124 extra public houses, up to 300 new crisis accommodation units and providing accommodation assistance for mental health clients.
The government is also going on a land spending spree, allocating $60 million for land acquisitions in the Perth metropolitan area to deliver about 1,850 new residential lots to the market.
"The most significant issue confronting Western Australians now is affordable access to accommodation," Mr Carpenter said.
"It would be unthinkable for us not to address those issues."
Local governments will benefit from a $3 million funding scheme to assist with planning and fast-track approvals.
The government will also put just over $90 million into developing housing for government officers in regional areas, including Port Hedland.
The $238 million funding package is in addition to housing affordability measures announced in the last budget, including cuts to stamp duty and abolishing letting fees on new leases, the establishment of the $300 million First Start Scheme shared equity program, and more than $370 million to increase public housing numbers.
The full text of an announcement from the Premier's office is pasted below
Premier Alan Carpenter has announced a $238 million housing and land package with a major focus on accommodation for lower income earners.
The announcement coincides with the release of the State Government's Annual Report on State Finances for 2006-07 showing a record net operating surplus of $2.3 billion.
The Premier said that sound financial management and a booming economy had enabled the Government to invest more money into new housing and land initiatives.
"The $238 million package unveiled today focuses on the key areas of social housing and crisis accommodation, land supply and accommodation in regional areas for government employees," Mr Carpenter said.
"While many Western Australians are enjoying the opportunities being provided by our strong economy, there are still many others facing the financial challenges associated with an unprecedented demand for land and housing.
"Housing affordability and accommodation is a major priority for this Government and today's announcement builds on a series of major housing affordability initiatives implemented since 2004."
The extra $238 million would help deliver:
- 124 extra social housing dwellings;
- Up to 300 new lodging house and crisis accommodation rooms;
- Incentives to relocate 100 people in under-occupied properties to smaller properties;
- Assistance in providing accommodation for mental health clients as part of the Mental Health Strategy that commenced in 2005-06;
- Strategic land holdings with the potential for 1,850 future residential lots; and
- 62 new Government Regional Officers Housing dwellings.
State Treasurer Eric Ripper said Western Australia's finances were healthier than ever with the general government sector being net-debt free for the fourth year in a row.
"The figures highlight the fact that the State's financial position is very strong," Mr Ripper said.
"This allows the State Government to plan for the future by investing record amounts into capital works infrastructure, retiring debt and addressing key ongoing issues of community concern like housing affordability."
Financial highlights for 2006-07 included:
- A record general government operating surplus of $2.3 billion, up $39 million on the surplus recorded in 2005-06;
- General government revenue in 2006-07 totalled $17.45 billion, representing growth of 7.7 per cent on 2005-06, which although strong, is substantially lower than the record 14 per cent recorded in 2005-06;
- Net debt at June 30 was $2.98 billion - the lowest level on record;
- A net debt to revenue ratio for the total non-financial public sector of 17.9 per cent - the lowest on record; and
- These low net debt outcomes were achieved while delivering a record $5.1 billion Capital Works Program - up $666 million on the previous record spend in 2005-06.
The stronger outcomes for 2006-07 included a Consolidated Account cash surplus of $1.3billion, with $1.09billion allocated to the new Fiona Stanley Hospital in the recent 2007-08 Budget.
The Treasurer also announced that a further $149 million would be used to retire agency debt, with another $50 million to fund the recently announced increase in completion costs for the New MetroRail project (ensuring this project remains debt free on completion).
In addition to paying the construction costs of these major assets in full, this decision brings to $3.7 billion the total value of debt repaid or avoided using recent cash surpluses from the State's current boom. This is in turn saving around $233 million annually in interest costs.
"The 2006-07 figures show once again that our economy is running at full capacity and the Commonwealth needs to help ensure we can meet the demand for infrastructure development and the skills and labour that our State needs to keep growing," Mr Ripper said.
"The State Government's approach has been to make sure that these good times are not squandered but rather used to build a sound economic and social base for our future.
"We are expanding and improving key services such as health, law and order, child protection and environmental protection.
"We are reinvesting the money into building the infrastructure such as ports, roads, hospitals and schools that WA needs to retain our position as the nation's economic engine room.
"This approach has already been recognised by the credit ratings agencies, with both Moody's and Standard & Poor's confirming the State a Triple A credit rating in the last 12 months."
