Rita Saffioti promises new housing funding in mid-year Budget review, defends debt amid royalties windfall

Rita Saffioti has promised new housing initiatives will be funded in this week’s mid-year review of the State Budget, as she defended rising debt levels despite a royalties windfall. The Treasurer has confirmed a $2.4 billion boost to State coffers due to higher iron ore and gold prices, and a $2 billion-plus surplus. But net debt is still on track to reach $42b in 2029. Ms Saffioti said the windfall is best used for infrastructure. “It’s been used to fund health and housing,” she said. “We make no excuses of using the additional revenue to the State to fund more hospitals and to buy hospitals and to build more homes. That’s what we’re doing.” The Government has already announced $1.5 billion will be put towards the Building Hospitals Fund that was announced in November. Ms Saffioti wouldn’t give details for the other $900 million. “I will be outlining new initiatives over the next week,” she said. She insisted WA’s net debt, that was $30.2 billion as of 30 June 2025, is sustainable. “Our net debt as percentage of GSP is the lowest in the nation. When we came into Government, it was the highest in the nation,” Ms Saffioti said. “I’m not sure who’s running these lines, because the credit rating agencies Standard & Poor’s and Moody’s, the hardest markers in the nation, have come out and endorsed our fiscal strategy.” She said current net debt levels remain well below the mark set by the Barnett Liberal Government. “This is despite $62 billion of asset investment over the eight years of the WA Labor Government,” the Minister’s spokeswoman later added. “Net debt at the end of 2024-25 was still over $4 billion lower than at 2016-17 at $30.2b compared to $34.3b.” The 2017 pre-election financial projections statement released in February 2017, before the Barnett Government was voted out, put WA’s net debt at $33.2b. Treasury later adjusted the 2017 figure to $34.2b due to an accounting adjustment. Opposition Leader Basil Zempilas said the current Government is “addicted to spending”, but backed the decision to spend more on health and housing. “It’s interesting that they say that now. They weren’t saying it halfway through the year,” he said. “And it’s interesting that housing is suddenly a priority. Suddenly it’s a priority.”