2 months ago
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The West Australian opposition has claimed credit for a $435 million cash injection into the state’s housing sector, contained in Thursday’s mid-year budget update.
Buoyed by billions in extra cash from iron ore, gold and stamp duty revenue, WA Labor will spend the extra money on a range of housing initiatives, including pouring $234.4 million into the social and affordable investment fund to build 329 houses and refurbishing 91 older dwellings.
WA housing will receive a much-needed boost.Credit: Paul Jeffers
The housing crisis has been a political nightmare for the WA government and a consistent target for the opposition, with the state’s public housing waitlist stubbornly high at more than 23,000 applicants and 7800 priority applicants.
Opposition Leader Basil Zempilas took to Facebook on Thursday to claim some credit for the extra funding, likening it to the recent decision to spend an extra $1.5 billion on health infrastructure.
“This is why a strong an effective Opposition is so important,” he said.
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“Long overdue and much needed. Today, with this announcement in housing, the State Government have conceded they haven’t ‘been pulling every lever’.
“This Cook Labor Government have had nine years to do something about the chronic shortage of social housing – nine years! This injection of dollars is much needed but there is still so much more that needs to be done.
“In the most prosperous state in Australia, we should have the best hospitals, the best schools and every West Australian deserves to be able to get into a home.”
The extra health and housing funding will come from WA’s extraordinary revenue-raising capacity, driven by resources and the housing sector.
An analysis of publicly available data shows iron ore royalties for 2024-25 have grown by about $2.5 billion when compared to predictions in the September budget.
That budget predicted an iron ore price of US$77.60 for the 2025-26 budget year. That price is actually averaging at US$104.14, according to WA treasury figures.
For every US$1 per tonne above the budgeted price of iron ore, WA receives a windfall of AUD$94 million – putting the state in line for an additional $2.494 billion from iron ore royalties alone.
The 2025-26 budget predicted a $2.4 billion operating surplus for that year but WA’s fiscal endowment won’t just stop at iron ore royalties.
Higher stamp duty receipts are expected to drive revenue up further as are gold royalties.
In the first three months of the financial year alone, the higher gold price added $64 million extra to the state’s coffers while stamp duty revenue was up $224 million due to the state’s elevated median house price.
The government is claiming its efforts in the housing space are bearing fruit with the number of new homes approved reaching 23,726 in October and more than 3800 additional homes completed since it embarked on its social and affordable home build effort.
The extra housing money will be spent across a range of other initiatives.
About $6.5 million will be spent on extending the rent relief program until June next year. That program allows tenants at risk of eviction can apply for up to $5000 in one-off grants to pay their rent.
More than $16 million will be added to the housing enabling infrastructure fund to be spent on connecting about 5000 new homes in new developments with water infrastructure.
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Development WA will receive $61.9 million to unlock land in Alkimos, Brookdale, Byford, Casuarina,
Hamilton Hill and Yanchep.
The state will also extend its $10,000 cash incentive to bring 1000 more tradies out west with $10 million for the construction visa subsidy and build a life in WA programs.
On the regional front, the government will allocate $57 million across a range of programs to improve housing supply in regional WA, including $14.7 million for 21 new government regional officer homes and $1.3 million to establish a housing supply office in the Pilbara to address crippling supply issues there.
“Western Australia’s economy is the strongest in the nation and its population is growing faster than anywhere else in the country, which is why my government is focused on building more homes,” Premier Roger Cook said.
“We’re increasing land supply, cutting red tape, and developing our housing construction workforce— and as part of Mid-year Review, we’re providing hundreds of millions of dollars in funding to do even more so every Western Australian can have the security a home provides.
“By continuing our strong financial management, we can continue to prioritise delivering more housing and ensure our State’s economy remains the strongest in the nation.”
Urban Development Institute of Australia WA chief executive Tanya Steinbeck was particularly pleased to see further funding in the housing enabling infrastructure fund.
“Overcoming infrastructure constraints in key areas through effective planning, coordination and timely delivery of infrastructure to catalyse development and create new homes is paramount,” she said.
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