The Western Australian government has announced a robust operating surplus of $2.8 billion for the nine months ending March 31, 2025. This figure reflects a nearly $2 billion increase in revenue compared to the same period in 2024, according to Treasurer Rita Saffioti. The surge in revenue is primarily attributed to increased Commonwealth funding and higher tax revenues, which offsets decreased royalty income from iron ore and lithium. These revenues have supported $9.7 billion in infrastructure spending during the period, focusing on water and power projects, including the Alkimos desalination plant, battery storage, transmission lines, and port infrastructure expansions aimed at bolstering economic capacity.
While revenue saw substantial growth, the state government experienced lower royalties, down $2 billion, primarily due to reduced iron ore ($1.6 billion decrease) and lithium royalties ($437 million decrease). Despite these fluctuations, the government’s expenditure remains aligned with strategic investments in health and education workforce expansion, cost-of-living subsidies for households and small businesses via electricity credits, and increased funding for healthcare, non-profit organizations, and schools. The total public sector recorded a cash deficit of $2.3 billion over the nine months, mainly due to the lower operating surplus and increased infrastructure spending of $1.9 billion. Total public sector net debt stood at $30.8 billion as of March 31, significantly below pre-election forecasts and substantially lower than when Labor assumed office in 2017.
