Mr Speaker, Western Australia is thriving. Our State is the envy of every other and with good reason. We have the nation's: • lowest unemployment; • highest business confidence levels; and • fastest growth in retail sales.
CAPITAL WORKS PROGRAM
In addition to providing massive tax relief, the Government is aware that we must continue to invest in necessary infrastructure to meet the growing demands of our economy.
In 2007-08, we will invest a record $5.8 billion in providing critical infrastructure to ensure that Western Australia continues to grow and meet the capacity demands of next year and beyond. Over the next four years, the Government's Capital Works Program is an unprecedented $21.6 billion.
In 2007-08, we will invest:
• $897 million on the State's electricity infrastructure to improve the safety and reliability of electricity generation, transmission and distribution, and meet the needs of the State's fast growing economy;
• $766 million on water, wastewater and drainage infrastructure, the investigation of alternative water sources, and the continuation of ongoing programs such as Infill Sewerage;
• $706 million to expand, maintain and improve our road network, with major projects including the New Perth to Bunbury Highway and the Mitchell Freeway extension from Hodges Drive to Burns Beach Road;
• $220 million on police, prison and other law and order-related projects; and
• $99 million on upgrades and improvements to the State's port facilities, further enhancing the State's export capacity.
On a comparable basis, and using the latest available estimates, Western Australia's direct spend on infrastructure assets in 2007-08 is around 35 per cent per capita more than the average of the other mainland States.
The forward estimates also include a $750 million provision to develop one or more new water sources.
While the desalination plant at Kwinana now provides 17 per cent of our water supply each year, it is clear that with our drying climate and fast growing population, Western Australia will need additional water sources in the not too distant future.
While the Government is carefully considering all options for new water sources, we have prudently made provision for the inevitable in this budget to secure Western Australia's future water needs.
Mr Speaker, our Capital Works Program is huge and, to ensure it is delivered on time, it must be reviewed periodically. This is why we recently undertook a strategic review of our capital program.
Our review identified a number of projects where the expected timeframes were not realistic in the current market. Accordingly, we have revised the timing for these projects by six to l2 months.
Housing Affordability
tax concessions for first home buyers-one key element of the Government's response to housing affordability issues.
$417 million for social, affordable and indigenous housing over the next four years, ensure the continuation of Western Australia's affordable housing programs through the sustained delivery of a combination of public and community housing, as part of an integrated social housing system.
$376 million will go towards the delivery of almost 3700 new public and community housing units over the next four years. A further $35 million will provide a range of immediate and medium term actions for Aboriginal Town Based Communities.
The package also includes $5.7 million in 2007-08 to facilitate expansion of the Bond Assistance Scheme through an increased bond loan limit, along with income eligibility limits set above social housing eligibility.
This will result in more families and singles being assisted with entry costs into private rental accommodation. The land tax changes will also assist in this regard.
On the other side of the coin, and to improve land supply in the State, we are committing $21.1 million over four years to deliver the electronic Land Development Program. This program will provide a more streamlined, transparent and efficient subdivision approval management system and will allow developers to apply online for approvals - 24 hours a day, seven days a week.
Accountants welcome Ripper's budget
10th May 2007, 15:00 WST
WA's accountants have welcomed home affordability relief for first home buyers in the West Australian budget today.
WA Treasurer Eric Ripper this afternoon handed down his seventh consecutive budget, unveiling $2.1 billion in tax relief over the next four years including cuts to stamp duty for first home buyers, reduced stamp duty for motor vehicles and reform of land tax scales.
CPA Australia WA director Aidan O'Grady said the budget delivered long-awaited relief for West Australians.
"The doubling of the stamp duty exemption threshold to $500,000 for first home buyers is very necessary in a state where property values have soared to unprecedented levels on the back of the resources boom," Mr O'Grady said.
"This initiative, which takes effect immediately, will save new home buyers $20,700 on the cost of a $500,000 property.
"We also welcome the land tax exemption thresholds on vacant land being doubled to $300,000."
Mr O'Grady said CPA Australia would like to have seen stamp duties on business property transfers and payroll tax tackled in this budget.
First home-buyers were the predictable winners in today's State Budget, taking the lion’s share of $443 million in scheduled tax cuts which Treasurer Eric Ripper called "the most generous in the nation".
Stamp duty will no longer apply to first home-owners buying properties worth $500,000, with the exemption being phased out at $600,000.
But there was no stamp duty relief for people who have already owned a home, a move which had been mooted by commentators.
"First home buyers will now benefit from the most generous concessions in the nation," Mr Ripper said.
"(This) will result in savings of up to $20,700 for home buyers. The estimated cost of the changes is $80 million in 2007-08, and $350 million over the next four years."
Miners claim credit for budget surplus
10th May 2007, 15:00 WST
Miners have welcomed funding in Eric Ripper's State Budget to address WA's chronic skills shortage, but have lamented a lack of direct investment in the mining sector
They also claimed credit for the State's booming economic conditions, with the WA Chamber of Minerals and Energy laying responsibility for the $1.85 billion WA Budget surplus at the feet of the State's burgeoning resources sector.
CME chief executive Tim Shanahan said the $50 billion resources sector had delivered record royalties, employment and flow-on economic benefits for Western Australians, providing the strong foundation for the Budget.
"The performance of the resources sector now underpins strong State economic growth forecasts of 4.5 per cent in 2007-08.
"State Government revenue through resource industry royalties provided the cornerstone of the near $2 billion surplus this financial year and will strongly contribute to the forecast $1.45 billion surplus next year," Mr Shanahan said.
He said $80 billion in resources projects were being either planned or were underway in WA and with increased global demand for WA resource commodities, it was likely the resources sector would continue to drive the WA and Australian economies.
Mr Shanahan said it was "imperative" the State Government continued to work closely with the resources sector to ensure the benefits of a strong resources industry.
The Association of Mining and Exploration Companies, which represents small and mid-size mineral exploration and mining companies, welcomed some measures in WA Treasurer Eric Ripper's budget today, including funding to address a chronic skills shortage caused by the resources boom.
The government will fund an estimated 34,600 apprenticeships and traineeship places in 2007-08.
AMEC chief executive Justin Walawski said the industry would be pleased with $99 million to improve the state's ports.
"Assuming this is targeted at places such as Port Hedland and the mid-west, it could assist with encouraging mineral exploration and the eventual export of minerals," Dr Walawski said.
However, he said the industry would be disappointed if it was expecting a direct reinvestment by the WA government in the mineral exploration sector.
Accountants welcome Ripper's budget
10th May 2007, 15:00 WST
WA's accountants have welcomed home affordability relief for first home buyers in the West Australian budget today.
WA Treasurer Eric Ripper this afternoon handed down his seventh consecutive budget, unveiling $2.1 billion in tax relief over the next four years including cuts to stamp duty for first home buyers, reduced stamp duty for motor vehicles and reform of land tax scales.
CPA Australia WA director Aidan O'Grady said the budget delivered long-awaited relief for West Australians.
"The doubling of the stamp duty exemption threshold to $500,000 for first home buyers is very necessary in a state where property values have soared to unprecedented levels on the back of the resources boom," Mr O'Grady said.
"This initiative, which takes effect immediately, will save new home buyers $20,700 on the cost of a $500,000 property.
"We also welcome the land tax exemption thresholds on vacant land being doubled to $300,000."
Mr O'Grady said CPA Australia would like to have seen stamp duties on business property transfers and payroll tax tackled in this budget.
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