WA’S RICH VEIN OF SURPLUS; TAX SHAKE-UP
GST not a key priority in tax reform, says Chalmers
Treasurer Jim Chalmers is flagging that major tax reform will be a key agenda item at the upcoming national summit on productivity. Addressing the National Press Club, Dr Chalmers said the forum in August would focus on ideas that were budget-neutral at a minimum, and be in the national interest. While inviting proposals on tax reform, the Treasurer poured cold water on extending the breadth and rate of the goods and services tax (GST). Dr Chalmers said he was not historically attracted to GST reform, claiming it was hard to adequately compensate people for a rise and extension of the 10 per cent GST rate. On defence spending, the Treasurer defended the Federal Government’s commitment to increase spending from two per cent to 2.3 per cent of GDP by the early 2030s as “very substantial.”
WA posts seventh consecutive budget surplus
Western Australia is on track to record 11 consecutive budget surpluses by 2028-29, with a $2.4 billion operating surplus forecast for next financial year. WA’s State Budget delivered by Treasurer Rita Saffioti has projected surpluses of between $2.4 billion and $2.8 billion for each of the next four years. While revenue is forecast to rise through higher Commonwealth grants and royalties from minerals, the Cook government has stepped up investment in health and infrastructure programs. Total revenue from royalties in 2024-25 is predicted to finish $76 million lower than the $7.7 billion estimated in November last year. According to budget papers, WA’s public sector net debt as a proportion of gross state product will be 9.1 per cent in 2025-26, the lowest of all state jurisdictions; Victoria, South Australia and Tasmania are all forecast to record net debt to GSP of above 20 per cent in 2025-26.
Sandgroper state tops population growth rate
Meanwhile, Western Australia has recorded the nation’s fastest annual population growth, increasing by 2.4 per cent to reach three million people over 2024. Figures released by the Australian Bureau of Statistics reveal that the nation’s population grew by 1.7 per cent to 27.4 million by the end of 2024. Total annual growth was almost 450,000 people, of which overseas migration accounted more than 75 per cent. All states and territories grew their population in 2024, but New South Wales and Victoria continue to attract the bulk of overseas migrants, while Queensland leads in interstate arrivals.
Marles flags savings from Defence Estate review
Deputy Prime Minister Richard Marles has flagged a major shakeup for defence property in Australia, identifying the opportunity to save and reprioritise billions of dollars for defence needs. Addressing a defence industry forum, Mr Marles said a Defence Estate Audit conducted in 2023 had reported that the estate footprint comprised numerous legacy sites without a clear ongoing link to current or future capabilities. He said that new Assistant Defence Minister Peter Khalil would lead the government’s work in responding to the Defence Estate Audit. The Defence Minister also nominated the major priorities for delivery of defence projects; these included the General Purpose Frigate, the Guided Weapons and Explosive Ordnance Enterprise, the Hunter class frigates, and the infantry fighting vehicles, as well as AUKUS-related investments.
PM moves to beef up security links with European Union
Prime Minister Anthony Albanese has opened negotiations to establish an official Security and Defence Partnership (SDP) with the European Union. Meeting with European Commission leaders at the G7 Summit in Canada, Mr Albanese said the SDP would provide a framework for current and future co-operation in areas such as defence industry, cyber and counter-terrorism. He said the EU’s existing SDPs with other countries covered cooperation on cyber, countering hybrid threats, maritime security, non-proliferation and disarmament, space and economic security. A Security and Defence Partnership did not include military deployment obligations, the PM said.
Dry season eating into agricultural production hopes
Ongoing drought conditions in south-eastern Australia are expected to push down agricultural production in 2025-26, according to latest forecasts. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) predicts that the gross value of agricultural production will fall three per cent to $90.7 billion, with crop and livestock values tipped to fall. Agricultural export values are also forecast to fall by three per cent, to $71.7 billion. Drought conditions had persisted across South Australia, Victoria, southern NSW and northern cropping regions of WA. ABARES said, however, that the predicted 2025-26 agricultural production would still be the third highest on record.