State budget
Motion
Hon Sandra Carr (11:35 am) without notice: I move:
That this house acknowledges the Cook Government's delivery of a strong and future focused 2025–2026 state budget, and its commitment to building Western Australia. In particular:
(a) the responsible, effective and strategic management of our state’s finances;
(b) the strategic planning for Western Australia’s future through a focus on jobs and economic diversification; and
(c) strong and targeted regional spending, including continued investments through royalties for regions.
I would like to begin by contemplating the overall vision that comes with this state budget and, indeed, the Cook government more broadly. It was noted in some of the earlier budget speeches. I was about to say "bubbitt", though I do not know what that means. It is a bit like "squidgy", only it means "squeegee". The only criticism that I can hear consistently levelled is that it lacked discipline and had no specific focus, which I found profoundly ironic because the focus of the budget has been consistent and delivered in a highly disciplined way by a highly disciplined team on this side of the room. That is, the focus is on economic output, job creation, diversifying our economy and building more things here in Western Australia while delivering on health and housing for the community.
I also noted some attempts to separate money from the management of the budget and the attempt to call the healthy finances that we have presented to the good people of WA as luck. However, it is impossible to separate management from the money. I will demonstrate that by taking us a bit further back in history, though not quite as far as Hon Steve Martin tried to travel back in time. I am going to take us back to 2016 and an article written in the Australian Financial Review, headed:
Western Australia posts worst economic result …
It was the worst economic result in 27 years. For those who have not taken the self-protective step of erasing that awful time in Western Australia's history from their minds, allow me to remind them. The article continues:
Western Australia's economy has suffered its second largest contraction on record …
This was under the Liberal leadership of Premier Colin Barnett at the time. It continues:
… Western Australia's state final demand plunged 3.8 per cent in the September quarter …
That was a fall far larger than occurred in any other state or territory and came after the economy had already shrunk 2.7% in the June quarter. It was the worst result since 1989, a record that the Liberal–National government continues to hold. It was noted by economists that the results were a sense of the pulse of the domestic economy at the time and the household perspective and the measures that were directly related to the labour market. Basically, it was argued by Barnett at the time that we were not measuring the economy in the right way, which is an argument that we constantly get from members of the opposition. They want to create interesting smoke and mirrors on the data in front of them. While the rest of the world is saying that one plus one equals two, they want to argue that it equals minus three.
Under the Liberal–National government at the time that the article I referred to was written, Western Australia had the highest unemployment rate in the country at 6.5%. On the year-on-year decline, at 9.6%, it was the biggest on record—a record that it continues to hold today. At the same time, Premier Barnett was wanting to sell off a majority stake in the state's electrical poles and wires to help reduce that debt, claiming that it would give us $3 billion. Obviously, that is something that Labor did not, and will not, support. I shudder to think about the position we would be in now if that had happened. If we need a reference point to consider what could have been, I will hark back to the sale of our freight network to Arc Infrastructure and the impact that that has had. Thank goodness the voters chose an alternative route in the Labor government.
While I am at it, to reference Hon Steven Martin's comments about railcar construction, let us not forget that it was the Court Liberal government that closed the Midland railway workshops. Thousands of workers lost their jobs. It lost that industry to us forever. It is a shameful part of our history. Hon Ben Wyatt warned the Liberal government at the time that its lack of effort in diversifying WA's economy was going to cost us, and indeed it did. What members have seen from us in past budgets and are seeing in this budget is recognition that we need to make conservative estimates in a state that is a heavy producer of natural resources. We know that if we want to avoid a constant cycle of boom or bust—a cycle that the Liberals seem to be content to ride and have everyone ride with them and feel those extreme pits and falls when it does bust—we need a diversified economy. That is something that we are heavily invested in. It is something that we have been doing very well and that this budget delivers on particularly well. All we hear from members on the other side of the room is constant criticism.
By 2023, we had finally clawed back our Aaa rating. Thanks to the Cook government's disciplined, effective and strategic management, we have a Aaa rating again. We have a Aaa rating from both international credit rating services, SMP Global and Moody's. This is no small feat: this makes WA the only Australian state or territory, and, in fact, one of the few jurisdictions globally, to have a Aaa rating from both agencies. Luck indeed! Surely, it is a very difficult argument to attempt to prosecute and maintain any kind of credibility on that it is sheer luck and not good, strategic and effective financial management that has got us to where we are today and that has earned us the confidence of WA voters in re-electing the Cook government. We intend to continue with that performance and the diversification of our economy.
CommSec's State of the States report has placed WA at the top of the states for the third consecutive time. Consistent performance is being recognised by key agencies. It has also noticed our strong economic output, our job creation and our diversification of the economy and the fact that we are working to build more things in WA. It gives us a high rating in five of the eight economic metrics, including labour market, retail and housing indicators. It also ranks us first on things such as retail spending, which was 11.5% higher in the December quarter, and the trend unemployment rate, which was the lowest of all the states at just 3.5%. I note that members across the floor attempted to criticise our job figures and our employment rate. It becomes a ludicrous argument to prosecute and definitely a nonsensical one. It shows a party desperately clutching at straws for opportunities to criticise where there is no criticism to be levelled.
We have also had fairly significant population growth, which means that we have some sustained growth in business as well. We are doing some great work in supporting business. A lot of our work has been directed towards ensuring that the housing market can be revived, that a lot more construction can take place and that we have the trades and skills to deliver that construction. We can see evidence of the success of that work in that housing completions rose by 18% in 2024, and that was the highest rate in seven years. It is effective strategic planning and management to achieve the outcomes that the state wants us to achieve. We are also seeing people vote with their feet in that we have strong population growth. The Australian Bureau of Statistics noted last week that our population had hit three million, which shows us that there is great confidence in the state. People are seeing opportunity here. They can see that we are managed well. People want to be here and be part of the prosperity and job opportunities in Western Australia.
I am running out of time. This has gone much quicker than I thought, so I am going to skip to the second point, which is our planning for and focus on jobs and training. I would like to spend a little bit of time talking about some of the investment, particularly the $21.9 million to make additional building and construction courses free in 2026 to ensure that we have the skills and the people trained—not just young people, but people who want to transition into new training areas—to undertake that work. I mentioned in one of my previous speeches the prohibitive nature of the high cost of those TAFE courses for students under the previous Liberal government, which made it impossible for some young people and people from low socio-economic backgrounds to do the courses. Education and opportunities have to be for everyone. The courses include certificates in plumbing, wall and ceiling lining, bricklaying and blocklaying, solid plastering, civil construction, construction, and construction pathways. They will all be on the fee-free list at the start of 2026. These are great opportunities for young people who will be finishing school towards the end of the year and are looking towards their future. They can feel a sense of optimism and a sense of it being achievable or doable for them. This is all part of our Made in WA plan to make sure that we have people with the skills to undertake those jobs as we develop and diversify our economy. We are diversifying our economy through things like $83 million to produce electric buses and ferries in WA; $50 million for a housing innovation fund; $50 million to establish a Perth biomedical precinct; $50 million for a local battery manufacturing program; $40 million for the new industries and innovation fund; more money for new energies, which of course relates to our transition to renewables, carbon capture and storage projects; $25 million towards the manufacture of transmission towers and components; and $8.9 million for exploration incentive schemes. There is some really exciting work and skills coming into the state, particularly in terms of STEM-type skills. I have met a lot of people recently who are working in that field, and it is really exciting to see that attraction as we put in the investment and work on diversifying our economy.
I am going to skip to the third point because I am running out of time. There is just far too much to cover in all of this. I have talked about our regional investment and our Royalties for Regions investment. There is $4 billion for Royalties for Regions in this budget, plus a $10.3 billion pipeline for regional infrastructure work. There is some really great investment in our regions and incredibly significant spending. There is $121 million for additional regional health and mental health investment. There is a lot in here. I was going to talk about things like the 40c per kilometre for the Patient Assisted Travel Scheme and that sort of thing, but I also want to mention investments in my own home patch, such as $1 million for renal services, $1 million for radiation oncology, $1 million for the Kalbarri Health Centre, and $12.2 million for a virtual infant, child and adolescent mental health service hub. We also have $19 million going to the Geraldton Health Campus redevelopment and $19.6 million for the development of Mullewa Hospital. There is some really great investment in health across the state, but they are some happening in my patch.
There is also some great work in regional services more broadly. There is $30 million for the School of Isolated and Distance Education. I wrote down a figure for our spend on regional bus services—I might have put it down. We have $5 million for police and community youth centre early intervention and diversionary programs, which are particularly important in stopping harms for young people in their lives and the opportunities for them before they start. That is a really great investment. There is $104 million to double the Government Regional Officers' Housing construction program. Therefore, we are getting more housing and shifting some people out of other housing in the region to ensure that there is more housing around for everyone but making sure that people who come to the region to fill the needed jobs have housing to move into straightaway.
I want to talk about some of the investment in schools. As part of our great regional investment, $789.6 million is allocated for the remote schools infrastructure program, which will deliver some great results across the state. In my home patch, there is money for Geraldton Senior High School, and also $23.5 million for a new gym at Champion Bay. While we were there announcing that, we spoke to a group of kids who were the beneficiaries of our Country Week fund to help kids go to Country Week. One thing we heard was that this is the first time some of those kids have been able to go to Country Week, so they were super-excited! For other families, it meant that more than one person in their family could go to Country Week. It is really unlocking opportunities for regional kids to grow, travel and experience the full range of opportunities we offer in this state.
This budget is strategic, well planned and well managed from a disciplined government. Additionally, it has very little to do with luck and a lot to do with outstanding fiscal management.
Visitors
The Acting President (Hon Dr Brian Walker): Members, before I give the call, I draw attention to the President's gallery where we have Miss Brooke Woods attending for work experience from St Mary's Anglican Girls' School. Welcome, Brooke. I hope your experience is going to be enlightening.
Proceeding resumed
Hon Tjorn Sibma (11:51 am): In terms of parliamentary contributions this week, I have run a marathon and I have completed the 100-metre dash. I will deliver this address within a more acceptable time limit.
I thank Hon Sandra Carr for moving this private members' business motion. I think it is a substantive motion. There are elements of the contribution that I can and do take exception to or am minded to critique. I want to specify one thing. I have noticed in recent days that government members become particularly sensitive when we mention the l-word: luck. I do not want government members to take it as an insult at all. I feel lucky to be born in this place at this time. The government should feel lucky that it benefited from an enormous iron ore boom. I think the capacity for the government to be creative and visionary with a budget has come about because of its enormous revenues, save for taxation and fees and charges that it has very little influence over. The government does not make the GST revenue or the royalties revenue; that is done for it. It benefits from that. I do not begrudge the government its luck, but it has had luck. It is a good thing. What is it doing with it? Sometimes, I do not understand the sensitivity around its good fortune. I do not know why members opposite would feel so defensive. It may be because there is more than just an element of truth in what I have been saying and what members of the opposition have been saying and no doubt what the crossbench will say when it provides budget reply speeches.
I want to focus on an element of this motion, not in a partisan way, but in an attempt to be more analytical. What does the government mean when it says that it is for economic diversification? What does it actually mean? This is not a gratuitous or rhetorical device. Does the government mean that it is seeking to diversify its streams of revenue? Does it mean that it is seeking to diversify in a substantial way the state's industrial base or is it seeking to diversify its economic structure? Is it seeking to diversify the range of export markets that the state has entered?
A government member: We can do more than one thing at once, member.
Hon Tjorn Sibma: What is it? I think it is a term that is abused by governments of either stripe, state or territory. When a government uses "reform", be very critical. When a government uses "innovation" as one of its guiding ethics, run a million miles from it because you will get not innovation but an increase of bureaucracy under another name. When the government talks about economic diversification, what is it actually talking about? I do not think the government itself is very clear. This government has used economic diversification as a rhetorical device for at least the last eight years—the absolute entirety of the Labor administrations in this state since 2017. Mark 1, mark 2 and mark 3 have all invoked the mantra of economic diversification. After these eight years, has the state substantially diversified in economic terms? It has had eight years. Has the state diversified in any meaningful, measurable and objective way? The answer is no.
I refer to some documents. They are not the entirety or the only measures, but they are reliable measures. I was criticised last week for apparently not having enough facts and figures. So, I thought, actually, you know what, I will bring a few to this debate. I sought a fact sheet compiled by the University of Western Australia with the Committee for Perth. I deliberately chose the date of February 2018, about 11 months into the McGowan government. It has an overview of the Western Australian economy. It notes under the heading "Industry sectors (nominal gross value added)" an overview of the structure of our economy, listing that mining accounted for 29% of GSP in 2016–17, followed by business and property services at 10% and construction at 8%. Manufacturing accounted for 5% of GSP in 2016–17. Agriculture, forestry and fishing accounted for 3% of GSP in 2016–17. These are not figures to necessarily debate or to attach any emotion to. They are just the figures that mark the structure of the Western Australian economy seven or eight years ago.
What does it look like today? This document, Western Australian Economic Profile—May 2025, was produced by the Department of Jobs, Tourism, Science and Innovation last month. This document is compiled for use by our network of overseas trade offices. What does it say about the structure of the Western Australian economy? Again, we have mining at 10%, construction at 9% and manufacturing at 5%. It shows exactly the same structure and composition of the overall pie as existed eight years ago. Guess what is going to happen in another eight years? It will likely be exactly the same. This government is not diversifying the Western Australian economy because it cannot. It will take a lot of effort to restructure the industrial and economic composition of Western Australia. The greatest transformation in economic structure in Australia and Western Australia has been the surge of services industries. That is actually the big news story. If there is diversification, it is happening in the aged-care sector, the health sector and in a range of proliferation of service industries. The single greatest industry that has grown over the course of the last eight years is probably the size of the public sector, but I am sure that is not the economic diversification that that Hon Sandra Carr is referring to.
There are many meritorious things in the government's budget. It has not delivered a terrible budget, but we have critiqued what we think is appropriate to critique. I know there is the branding, the rhetorical advice and the umbrella of Made in WA, and of course we would all like to see more things made in Western Australia, but the government cites series C railcars as the poster child that effectively exemplifies this commitment and the government's ability to bring manufacturing back to WA and then, when it is asked very reasonable questions about the actual composition of Western Australian inputs into those railcars, it refuses to answer the questions. When the government cites commercial-in-confidence as a reason for not tabling the local content participation plans, absolutely nobody in this chamber should believe it. Members certainly should not believe the most unbelievable person, the Minister for Transport, when she claims to have brought manufacturing back to WA in any substantial, meaningful degree. Government members cannot do that, and it is time they took a long walk down the hall of mirrors, had a look at themselves and every now and again take a step back, take a deep breath and ask themselves, "Actually, am I speaking the truth? Can I live up to the hype?"
The government might list a range of items under this umbrella, but there is absolutely nothing to diversify the Western Australian economy. If it were genuinely serious about diversifying the Western Australian economy, it would do something called tax reform, but that is something that the government will run a million miles away from because it is addicted to lazy revenue.
Hon Samantha Rowe (Parliamentary Secretary) (12:01 pm): I rise this morning to give the government's response to the motion moved by my friend and colleague Hon Sandra Carr, whom I thank for bringing it on for debate this morning. It is pleasing to be able to rise and talk about some of the great work that we are doing and are going to do when we deliver the promises within our state budget this year.
This is a budget that has really required quite a lot of balance, because we want to make sure that we are a responsible government, and we want to make sure that we are responsible with the state's finances. This is a budget that is shaped by responsibility, resilience and, of course, reform. We are seeing record investment in a number of areas that are really important to Western Australians—areas such as infrastructure, jobs, health, education and housing. We need to do all this while keeping our finances strong, but also sustainable, because that is what is really important.
Over the past five years, WA's domestic economy has grown by a remarkable 26%. That outpaces every other state and territory in the nation. More than 340,000 jobs have been created since we came into government and that is the most in the state's history. We proudly hold the lowest unemployment rate and the highest average wages in Australia. This budget delivers our seventh consecutive operating surplus, with $2.5 billion forecast for 2024–25 and $2.4 billion for 2025–26, but we need to be very, very clear that this result of responsible financial management is not going to be hoarded; it will be reinvested back into our communities. We are investing $38 billion in infrastructure, including $12 billion this year alone. While we are delivering for Western Australians, we are also doing more than our fair share for GST revenue to the Commonwealth—a lot more than the rest of the states and territories. That is why it is really important that we use every dollar really wisely, to make sure that we are able to ease the cost-of-living pressures we are seeing here in Western Australia, as well as to deliver essential services—services that people expect a government to deliver to the people of Western Australia.
This is a budget that will deliver $963 million in cost-of-living support. For the sixth year in a row, we have been able to keep household fees and charges below inflation. That is really important to the people out there in our communities who are really struggling with the cost of living, and we recognise how difficult it is at the moment. Every WA household will receive a $150 electricity credit; vulnerable families will get an additional $343 through the energy assistance payment; and we are helping families to reduce their long-term energy bills with battery rebates and no-interest loans. We have capped SmartRider fares at just $2.80, no matter where people live. Students, of course, will continue to be able to ride for free, and we are expanding the school breakfast program to 670 schools. These are really important measures for making sure that we can assist in all the ways we can to ease cost-of-living pressures on families. Students need to be able to travel on public transport for free. Students need to be able to attend school on a full tummy so that they can sit in the classroom and learn all day. We are also helping kids with the $300 KidSport voucher. We are supporting seniors and regional families, increasing the regional pensioner travel card, and halving Transwa fares.
In relation to housing, we have already invested $5.8 billion since 2021. That means that in 2024 alone, 20,600 homes were built, with 23,000 approvals and a 45% increase. That is a huge amount. We understand that there are huge housing pressures on our community, but we are absolutely committed to making sure that we can assist with this problem. The fact that we have committed to spending so much money says a lot about the importance we place on this.
Our construction workforce is also at record levels. We are backing this effort in with $22 million for free TAFE tradie courses, $400 million for a housing enabling infrastructure fund to unlock 33,000 new homes, and $210 million to support 1,000 shared equity loans. First home buyers will benefit from stamp duty cuts, and we are delivering on our commitment to social housing with 5,800 new social homes planned, 3,000 already delivered, and $246 million to build another 548 homes. In the regions we are investing $104 million in key worker housing and launching a $50 million housing innovation fund to modernise our construction methods. We are diversifying and building local capability. We are investing $25 million to expand manufacturing hubs in Forrestfield and in Picton. There is $50 million for battery manufacture and supporting WA-made electric buses and ferries. We are also investing $2.7 billion in power, water, ports and industrial zones.
We want to make sure that we actually set this state up to be sustainable into the future, because that is what Western Australians expect. They want to be sure that what we are doing is going to be responsible, not just in the short term, but also in the long term. That is a really big focus of this government—to make sure that we are being sustainable in our economic management of the state's finances.
In relation to education, we are investing $1.8 billion in new spending. This includes a pilot for full-time kindergarten, new school care services, $134 million for school upgrades and $124 million for maintenance. We are continuing our commitment to vocational training, with 165,000 enrolments and 46,000 students accessing fee-free TAFE courses. We are committing $100 million to keep TAFE free or low cost.
In health and mental health, this budget commits $1.4 billion in new funding, because we know how important it is to have a strong and sustainable health system. Our total health spend will reach $14.2 billion in 2025–26, a 61% increase since 2016–17. These are record amounts that have been invested in health, and we will continue to invest in health, because that is what is important to our government and we know that is what is important to the good people of Western Australia. We have seen our health workforce grow by 42%, with 5,600 more nurses and 2,300 more doctors. We are investing $829 million extra in hospitals, starting the construction of the new women's and babies' hospital, upgrading medical equipment and expanding the very important respiratory syncytial virus immunisations. We are also supporting aged care, parenting services through Ngala and boosting regional health with $944 million in new infrastructure.
This budget is making sure we are spending on the things that we believe are important to the people of this state, whether it be in education, housing or supporting jobs, we are very much about making sure that we are setting up the state for the future in a responsible way, but also in a sustainable way. I think that the people of Western Australia want a government that will manage the finances in that way, and we will continue to do that.
Hon Klasey Hirst (12:11 pm): I rise today in support of the motion brought to us by my good friend and colleague Hon Sandra Carr acknowledging the Cook government's strong, responsible and future-focused 2025–26 state budget. This is a budget that manages the state's finances with discipline while delivering real relief to households, strategic investment in infrastructure and jobs and, importantly, strengthening our commitment to regional Western Australia.
Last Friday I had the opportunity to join the Minister for Education; Wheatbelt, Hon Sabine Winton, in Narrogin to present the state budget to the local community, including with yourself, Deputy President. I want to thank the minister for inviting me and giving me the opportunity to go with her. The breakfast was held at Narrogin Senior High School, where we also had the chance to tour the campus and speak with the staff and students. It was especially impressive to see the school's unique student-led hospitality program in action. The breakfast itself was prepared and served by the talented students at WA's only high school student–operated restaurant. It had a beautiful view, too. I can tell members that the breakfast was delicious. Budget presentations like this are not just about the numbers; they are about showing up, listening, and being accountable for delivering, in partnership with local communities.
As members know, I have lived in regional Western Australia. I lived in Kalgoorlie–Boulder for nearly seven years and know firsthand what it means when the government invests in a town. I have seen the impact of Royalties for Regions in community facilities, sporting clubs, local health services and grassroots infrastructure. One item in particular that I want to bring to the attention of the house is the MRI machine in Kalgoorlie. That was game changing when it was installed in 2021. It made a huge difference to get an MRI in town and not have to drive or catch a plane and travel 600 kilometres.
This budget, like the ones before it, prove that regional WA is not an afterthought. More than $10 billion is to be invested in regional infrastructure in the regions over the next four years and $4 billion through Royalties for Regions over the years 2025–29. That will keep our communities strong, connected and thriving. But it is not just about financial investment; it is structural. After the last election, the government appointed a dedicated minister for every region in Western Australia. That means regional voices have a direct say at the cabinet table. That shows our commitment.
Let us talk a little about cost-of-living relief. The parliamentary secretary touched on it, but I want to touch on it as well. Although inflation has eased, we acknowledge that people are still doing it tough. Interest rates are still elevated and the cost of everyday items remains high. That is why this budget delivers $963 million in targeted cost-of-living relief. We have capped electricity and water charges to just 2.5%, which is well below inflation. We are reducing the state's fees and charges basket by 0.8%. This is the sixth time that the basket has been below inflation and the fourth year that the basket has decreased. Over 1.1 million households and 90,000 small businesses will benefit from the $150 Commonwealth electricity credit and we have battery rebates and no-interest loans to cut energy bills for 100,000 homes. We are also expanding the hardship utility grants scheme, including water support for social housing tenants and as an extension of the WA rent relief program through to the end of 2025. That is real support for people doing it tough, and it is being delivered responsibly.
Transport affordability also matters, especially in the regions. This budget includes free student public transport through to 2026 and we have introduced the one-zone fare cap. We have also halved the price of Transwa fares across regional WA, and we are increasing the Regional Pensioner Travel Card, which will now be up to $775. We are also seeing a lift in the Patient Assisted Travel Scheme subsidy to 40c per kilometre. I want to talk a little more about PATS. When I first moved to Kalgoorlie in 2015, I did not know PATS existed. As someone who spent a fair bit of time in that first year or so travelling between Kalgoorlie and Perth for medical appointments, because that is when I had my gastric sleeve—for members who do not know, I had a false start on that because I had an anaphylactic reaction and came quite close to not being here—I went back and forth a lot in those early years. Having access to PATS would have made a huge difference. Through my roles at the bank in Kalgoorlie and then in the local travel agency and as an electorate officer, I got to help many people with their PATS applications, so I know how important it is to them. It is not a luxury; it is access to care.
Speaking about transport initiatives, I want to talk about the capped regional airfare. It is an outstanding initiative that has made a huge difference to people. I left Kal in 2022 just as it was starting, but I can count on my hands the number of times my husband and I were able to fly between Kalgoorlie and Perth before that. We could not afford to fly. It is one of the most expensive airline routes per kilometre. It is a 50-minute flight and the one-way tickets were regularly at least $500 or more each. In the last couple of months before we moved back again, we were finally able to fly for those really quick turnaround visits.
Supporting families also means investing in education and development. This budget includes a second WA student assistance payment, which will see $250 for secondary students and $150 for primary and kindy students. We are also expanding the school breakfast program, we have fee-free TAFE for housing construction courses and we are supporting regional families to attend Country Week. When I was at Narrogin Senior High School, the students were excited to tell us all about that, and they will be coming down to play. We also have the new kids Access all Areas Pass, opening up cultural and recreational venues for all families.
Our commitment to health extends beyond the metropolitan hospitals. This budget includes $121 million in regional health and mental health investments. As mentioned, we have the PATS fuel subsidy and we are providing $12 million for the virtual infant, child and adolescent mental health hub, giving rural and remote families access to critical early intervention. We are also providing $14 million to establish a child and adolescent acute care and response team in Bunbury and many other initiatives. It is not just investment; it is equity. It is saying to young people, families and communities in regional WA that they deserve access to care too, and we are delivering it.
Economic diversification is a pillar of this budget, and regional WA plays a central role. We have given a $30 million boost to the Collie Industry Attraction and Development Fund, $11 million for the planning and development of the Albany port and money towards the regional racing funds, as well as investment into natural tourism access and sustainable industry growth, because that is what real regional development looks like.
The budget also continues to invest in the foundations of regional life. We are doubling the Government Regional Officers' Housing program. As I mentioned, we have provided support for Country Week, $30 million for the Schools of Isolated and Distance Education and $16 million to futureproof police accommodation. I also want to take a moment to speak about one line item that I was particularly pleased to see, and that is the provision of $3 million to continue baseline funding for financial counselling services, including in Narrogin, through the Share and Care Community Services in the Wheatbelt.
As a former banker and someone who is passionate about financial literacy, I know the power of early intervention. Whether it is budgeting support, navigating hardship programs or getting on top of debt before it spirals, financial counselling gives people the tools and confidence to make informed decisions. It is not just about economics; it is about dignity, stability, and hope. All this is possible only because Western Australia continues to lead the nation in strong economic management. Our domestic economic activity is up 3.4%—the highest growth of any state. There is a new record of 1.61 million employed Western Australians, unemployment remains low and is expected to average 3.75% this financial year and the budget is in surplus. Western Australia is the only state to hold a Aaa credit rating from both S&P Global Ratings and Moody's. It is a record we can be proud of because it allows us to govern with confidence and compassion.
This budget does not just respond to the challenges Western Australians are facing right now; it also looks ahead. It is about creating the conditions for future growth and ensuring that growth delivers secure, meaningful jobs across our state. That is why the Cook government's Made in WA plan is central to this budget. It is our commitment to make more things here, grow our local industries and create more Western Australian jobs. But we cannot take that growth for granted. We need to build the industries to support our future, and that is exactly what this budget does. As members know, I am very proud of my family's rail history and history of making things here, so seeing $8.3 million put towards planning and negotiations to buy the freight rail back was really important to me.
Hon Ayor Makur Chuot (12:21 pm): I rise today to support a fantastic motion moved by my colleague Hon Sandra Carr acknowledging our Cook Labor government's delivery of a strong future-focused 2025–26 state budget and our commitment to building a more resilient and inclusive Western Australia for all of us. Hon Sandra Carr and parliamentary secretary Hon Samantha Rowe talked extensively about everything; they covered most of the stuff in our state budget and how our focus as a government needs to make sure that we look after the people who brought us to this chamber. Other colleagues will also speak on this motion.
Our focus as a government is on key areas. This budget deserves an acknowledgement from the crossbench. Personally, I keep saying that as the first African black woman elected in this Parliament, I grew up in a minority group. Since I got elected, I treat my office as an information hub. Some of our citizens do not know what is available out there and in our budget. It really breaks my heart every day when I look at the crossbench and they are so negative, even in a fantastic week when we should be promoting this budget. This is a week when we should be promoting this budget and talking to our citizens about what is available. In particular, the student assistance payment will expire in a few days. That is one of the things we should be talking about. A percentage of our people have not claimed the student assistance payment and it just breaks my heart.
Again, I am speaking from my own personal perspective as someone who came to this Parliament who grew up in a refugee camp. My mum was never informed. I see other members. I know that when in opposition, members have to do their job, but I feel like it is important to promote what is important for our citizens. Let us promote what we have achieved as a government. Hon Dr Steve Thomas does not have to promote it to this extent—I know he is looking at me!—but let us promote the student assistance payment that is expiring soon so some of the citizens who elected him can make sure they do not miss out on this opportunity. Our role as elected officials is to not be so negative to the extent where nothing in this budget is being acknowledged. We listen.
First comes the responsible and effective management of our state finances. This is about making sure that this budget reflects the areas of Western Australia that are most in need, while still preparing for the future. There are many Western Australians doing it tough. We know that, I know that, and our Cook Labor government knows that, and we recognise that for every household, and that is why are trying our best to every extent. We know that going to the shop is so expensive. We know that electricity is expensive. We know that rental and transport costs have risen.
Another thing I need to speak on more is transport and people criticising it. This morning while I was dropping my son off to school, one of the parents acknowledged how important it is for her son to get on the train every morning to go to the city or to go outside to get meaningful opportunities. He can go to university and does not have to worry. How beautiful is it to listen to the locals appreciating that? As an Ellenbrook local, it takes me one hour to come to Parliament every morning. It takes a long time. Now we have reduced the travel time to come to the city to 30 minutes. That is fantastic. As people who sit in this chamber and as leaders who many people look up to, at least acknowledge some important things that our government is doing.
I talked about the cost-of-living pressures we are seeing. We have talked about the increase in the price of eggs; it has risen to like $12. We can talk all about that. We know that across Western Australia, there are many hardworking people and parents who are putting in long hours and taking on second jobs. They are sacrificing personal time to meet basic needs such as food, shelter and health. That is why our Cook Labor government is prioritising affordability, real investment and long-term solutions in our 2025–26 state budget. It includes $963 million in cost-of-living support measures to assist families and give households a bit of relief.
As part of this commitment, our government is also investing $554 million to directly support Western Australian households. From 1 July 2025, household electricity and water charge increases will be capped at 2.5%. Households will benefit from a 0.8%, or $52.12, reduction in the basket of state government household fees and charges in the 2025–26 budget. This is the sixth consecutive year that the basket has been kept below inflation. How fantastic is that? It is also the fourth year that the cost of the basket has decreased during this time.
Another fantastic initiative is the residential battery rebates and no-interest loans for 100,000 households across Western Australia. Another fantastic announcement that people are not talking about is the $150 electricity credit to apply to more than 1.1 million Western Australian households and more than 90,000 businesses across WA. We also expanded eligibility criteria for the Hardship Utility Grant Scheme to include water bill assistance for social housing tenants. Another fantastic initiative is the Rent Relief Program, which has been extended until 31 December 2025.
Some of these mentioned measures are designed to shield families from significant price increases and to ensure that essentials remain affordable. That is what we do as a government. We are not saying that issues are not there; they are there, and that is why we are doing our best. For many families, this means less financial stress at the end of the month, and more energy to focus on what truly matters for their children, their health and their futures in Western Australia.
Our Cook Labor government is also investing in the little ones—our young people of the future generation. We are making sure that the kids do not go to school hungry. The budget also delivers $28 million to expand the school breakfast program across the state to ensure more schools can access vital support and more students can start their day with a nutritious meal.
As someone who was on the Joint Standing Committee on the Commissioner for Children and Young People, one thing that came out of our regional travel was that some kids, for particular reasons we cannot judge, struggled with nutrition and meals. Our government has put a massive investment into this. I am so proud of this because as a young person growing up in Kakuma Refugee Camp, I remember my mum making sure that breakfast and dinner were important in our home. Breakfast for a child means that they can enjoy themselves in the day and you will not see a grumpy child in the morning. Having a grumpy child in class can be very stressful for teachers who put in hard hours. As a parent of three kids, I sometimes look at my kids and laugh. They are entertaining, but they can be hard sometimes. The government has to make it easy for those teachers who put in that extra patience and love to our children so they can keep educating them. We all understand that breakfast is most important, like I said before.
In addition to continuing with our initiative for young people we are working on free travel for our students across the state, which means that every child, wherever they live, can go to school.
The Deputy President: The question is that the motion be agreed—Hon Dr Steve Thomas.
Hon Dr Steve Thomas (12:31 pm): Thank you. I got a bit excited about that!
The motion before the house we are debating today is interesting. I am at least glad that Hon Sandra Carr did not congratulate the Cook Labor government; we have moved on from that a little bit. There are seven really fun parts to this motion. In the few minutes we have got, let us look at some of the bits about budget management. Part (a) of the motion refers to the effective and strategic management of our state's finances. I love "strategic" because presumably the state government strategically orchestrated the biggest boom we have ever by orchestrating the dam failure in South America that drove up the iron ore price, COVID and the massive stimulus packages, which also drove up the iron ore price. The iron ore price is what gives the budget its surpluses, its income and its revenues. The luck of this government is astounding. I think to claim strategic credit, though, is a little bit over the top—the government strategically managed to push the iron ore price up around the world so it could take advantage of it. Well done! I would love to see the strategy that the government put together—"strategic management"!
I have about a minute for each of these. I go to part (b), which refers to the strategic planning for Western Australia's future through a focus on jobs and economic diversification. I thought Hon Tjorn Sibma made a very good point that we have not seen a lot of this to date, but it is pleasing to see that some attempts are being made at economic diversification. That is absolutely great. The first one I like is manufacturing in Western Australia. Let us talk about railcars. We know that railcars are not being manufactured in Western Australia, they are being put together, they are being assembled. The railcars are manufactured elsewhere and they come in. The railcars are being assembled in Western Australia. How well are railcars being assembled in Western Australia? You have to go and get some squeegees from Bunnings to make sure they are operating properly because the windows do not clean properly. There are all these issues with them. In this massive strategic process of economic diversification the government is not manufacturing, it is assembling and messing it up as it goes. The government has a long way to go to have a diversified economy, particularly around manufacturing, in Western Australia.
Hon Dan Caddy interjected.
Hon Dr Steve Thomas: Look, it is Santa Claus without hair over there, well done! Peace to Santa Claus, thank you!
Hon Matthew Swinbourn interjected.
Hon Dr Steve Thomas: Yes, Santa Claus!
The government has also thrown a bit of other money around as well. It has $25 million out there for poles and wires. Apparently that is also economic diversification. There is $25 million going to different companies. Let us invest in manufacturing and poles and wires, but let us have a bit of realism. What is needed for poles and wires in the budget, particularly over the next few years, if there is to be a transition? There needs to be billions of dollars to make a transition work. It is nice to see the government putting some money into a couple of companies. That is good. One of them is in the South West. The Labor Party has worked out that the world does not stop at Mandurah and that is good to see. But is the government diversifying the economy by investing in these companies—good luck to them—or is it simply trying to buy a bit of goodwill out of the process? The government is not diversifying the economy. It has this massive job to do and it is doing this tiny little bit.
Hon Matthew Swinbourn: You have got one minute left to tell us what you would do.
Hon Dr Steve Thomas: We have one minute left. We only have the last section there, so we will run out of time.
The last section refers to strong and targeted regional spending. They love this "strong and targeted regional spending". This is lucky fill in terms of budget revenues. The government has taken lucky fill and moved onto the second step. The government's strategy is to take credit for all the things happened in the world that pushed up revenues to the point at which it is rich and cannot spend the money quickly enough. It is filling up the money bins still, even at this point. The third part of this is: "And we remember where the regions are." Congratulations. The government has not actually enhanced Royalties for Regions; it has not delivered a better Royalties for Region program. It has taken the money and put it into fulfilling its various bits and pieces—its election commitments. There is a lucky fill, the strategy is not working and remember the regions. It has been a great motion.
Motion lapsed, pursuant to standing orders.
