May 10 2018 Devil is in the detail of McGowan’s second budget The 2018-19 State Budget handed down today shows that despite receiving a massive windfall from the Federal Liberal Government the McGowan Government will still burden every WA household with more than $2900 in additional fees and charges over its term of Government while making significant cuts to frontline services, including health and police. Shadow Treasurer Dean Nalder said the budget contained no plan to reduce growth in debt other than pushing costs out beyond forward estimates, relying on handouts from the Federal Government and optimistic predictions for the future of the WA economy. “The reduction in Government expenditure is based on real cuts to essential Government services such as health, police and road maintenance,” Mr Nalder said. “As well as cutting services, this Government is shamelessly increasing the profit it pulls from entities such as the Water Corporation while asking families to pay more for their water at a time when a record number of households are experiencing hardship. “Water Corporation alone will pay close to $1 billion in tax and dividends in 2018/19, and $4.4 billion over four years – this is coming from the pockets of households already struggling with increased fees and charges. “Increases in Government fees and charges at 13 times the rate of inflation are not going to be easily absorbed by the one million West Australian households that are in mortgage stress at the moment. “The introduction of a new foreign property investment surcharge, risks further suppressing house prices in WA, which will be a bitter blow for the 71,000 WA households with zero or negative equity in their home.” Opposition Leader Mike Nahan said more analysis was required to determine where the budget had been manipulated. “Much of its expenditure is pushed out beyond the forward estimates, they are flat lining front line service expenditure which is unsustainable and they have generous estimates to inflate revenue assumptions,” Dr Nahan said. “There is still no plan for debt, no plan for jobs and no plan for families in this budget. The McGowan Government has banked the funding provided by the Commonwealth Government, but have provided required matched funding from the State. “This means that while they are claiming there will be a surplus by the end of the forward estimates, and debt peaking at $40.9 billion, there are questions around the infrastructure spend this Government has committed the State to but not yet included in the Budget.” “They are also misleading regional Western by manipulating Royalties for Regions. “This Government is sneakily shifting the cost of Government services that are normally met by consolidated revenue into Royalties for Regions. “By the end of the forward estimates, Royalties for Regions will have been gutted by 40 per cent.” Media Contact |
