The Western Australian Government has reported an operating surplus of $2.8 billion for the nine months to 31 March 2025, with revenue almost $2 billion higher than in 2024.
Treasurer Rita Saffioti says the March 2025 quarterly financial results released last week highlight revenue is $1.9 billion higher than last year due to higher Commonwealth funding and tax revenue, partly offset by lower royalty income for iron ore and lithium.
Saffioti says the operating surplus has supported $9.7 billion in infrastructure spending for the first nine months of the year, with significant investments in water and power projects, including the Alkimos desalination plant, batteries and transmission lines, as well as port infrastructure projects to expand economic capacity.
The state government received lower royalties (down $2 billion), which it says is mainly due to lower iron ore royalties (down $1.6 billion) and lithium royalties (down $437 million).
Expenditure is in line with increased government investment to boost workforce numbers in the health and education sectors, subsidies to provide cost-of-living support to households and small businesses through electricity credits and increased investment in health, not-for-profits, and schools.
A cash deficit of $2.3 billion was recorded for the total public sector for the nine months to 31 March.
“The deficit mainly reflects the impact of the lower operating surplus noted above and a $1.9 billion increase in total public sector infrastructure spending for the nine months to 31 March 2025,” the March 2025 quarterly financial results show.
“Higher infrastructure spending during the nine months to 31 March 2025 (up $1.9 billion on the same period last year to be $9.7 billion), was mainly attributable to higher spending by Synergy on battery storage projects, Water Corporation on a range of water infrastructure projects (including the Alkimos desalination plant), Western Power transmission lines and switchyards, investment by the Pilbara Port Authority on port facilities, spending on hospital upgrades and construction work on the Perth Film Studio.”
Total public sector net debt was $30.8 billion as of 31 March, $3.1 billion below the pre‑election financial projections statement forecast for 30 June 2025. It is still almost $13 billion lower than the $43.7 billion project when Labor came to office in 2017.
The Treasurer says the March quarterly report highlights the government’s continued focus on managing the finances responsibly, while investing in priority areas including cost of living, housing, health and education.
“Western Australia’s population continues to grow faster than any other jurisdiction in the country, and it’s important we continue to invest in priority areas to ensure we keep pace with demand,” Saffioti says.
“Our operating surpluses remain a critical source of funding for our infrastructure investment program, with a significant focus on projects that set our state up for the future like the Alkimos desal plant, batteries and transmission lines, as well as port infrastructure projects to expand economic capacity.”
Write to Adam Orlando at Mining.com.au
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