Latest news with #AdeptEconomics
The Advertiser
19-06-2025
- Business
- The Advertiser
Budget billions helps cashed-up state lead debt battle
The nation's wealthiest state is on track to remain an outlier on debt compared to other jurisdictions as it unveils another massive surplus. Western Australian Treasurer Rita Saffioti's second state budget on Thursday delivered a $2.5 billion windfall for the current financial year, with a further $2.4 billion surplus projected for 2025-26. It's the state's seventh consecutive operating surplus, which the Cook government says will help the resource-rich state diversify and set its economy up for the future. "This budget is about fortifying Western Australia from these global shocks," she told reporters at the budget lockup. "We've focused on strong economic management and strong finances. "We could blow all the money and then leave unsustainable debt for our future generations, but we're not going to do that." Net debt is expected to grow to $33.6 billion at the end of the current financial year, $1.1 billion more than forecast in December, and expand to $42.4 billion over the forward estimates. The treasurer said debt was more than $10 billion lower than projected when WA Labor came to office in 2017. At 7.5 per cent of Gross State Product, the state's debt levels are the lowest in the nation, with net debt to GSP forecast to remain well below 10 per cent of GSP over the next four years. By contrast, NSW, Victoria, Queensland and South Australia all have net debt to GSP ratios growing to an average of more than 20 per cent or more over the next four years. WA had gone from having the highest ratio of net debt as a percentage of GSP in the country at 13.8 per cent under the previous Liberal-National government to having the lowest under WA Labor, Ms Saffioti said. WA's relatively lower debt position can be linked to its controversial GST deal, consulting firm Adept Economics said. Debt is climbing rapidly in all states except WA over the next four years, according to the firm's analysis. Victoria has the worst debt outlook, while NSW, SA and Queensland are competing for the second-worst position, it said By 2027-28, gross state debt per capita will be $35,000 in Victoria, $30,000 in SA, $29,000 in Queensland and $28,000 in NSW. Western Australia had the most favourable debt outlook at about $18,000. Ms Saffioti said WA was the most resilient state in the nation and with manageable debt levels. The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said. The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers. WEST AUSTRALIAN LABOR GOVERNMENT BUDGET FOR 2025/26 * Surplus: $2.4 billion * Revenue: $50.2 billion * Expenditure: $ 47.8 billion * Net debt: $38.9 billion * GST revenue: $7.8 billion * Employment growth: 1.75 per cent * Economic growth: 2.5 per cent The nation's wealthiest state is on track to remain an outlier on debt compared to other jurisdictions as it unveils another massive surplus. Western Australian Treasurer Rita Saffioti's second state budget on Thursday delivered a $2.5 billion windfall for the current financial year, with a further $2.4 billion surplus projected for 2025-26. It's the state's seventh consecutive operating surplus, which the Cook government says will help the resource-rich state diversify and set its economy up for the future. "This budget is about fortifying Western Australia from these global shocks," she told reporters at the budget lockup. "We've focused on strong economic management and strong finances. "We could blow all the money and then leave unsustainable debt for our future generations, but we're not going to do that." Net debt is expected to grow to $33.6 billion at the end of the current financial year, $1.1 billion more than forecast in December, and expand to $42.4 billion over the forward estimates. The treasurer said debt was more than $10 billion lower than projected when WA Labor came to office in 2017. At 7.5 per cent of Gross State Product, the state's debt levels are the lowest in the nation, with net debt to GSP forecast to remain well below 10 per cent of GSP over the next four years. By contrast, NSW, Victoria, Queensland and South Australia all have net debt to GSP ratios growing to an average of more than 20 per cent or more over the next four years. WA had gone from having the highest ratio of net debt as a percentage of GSP in the country at 13.8 per cent under the previous Liberal-National government to having the lowest under WA Labor, Ms Saffioti said. WA's relatively lower debt position can be linked to its controversial GST deal, consulting firm Adept Economics said. Debt is climbing rapidly in all states except WA over the next four years, according to the firm's analysis. Victoria has the worst debt outlook, while NSW, SA and Queensland are competing for the second-worst position, it said By 2027-28, gross state debt per capita will be $35,000 in Victoria, $30,000 in SA, $29,000 in Queensland and $28,000 in NSW. Western Australia had the most favourable debt outlook at about $18,000. Ms Saffioti said WA was the most resilient state in the nation and with manageable debt levels. The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said. The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers. WEST AUSTRALIAN LABOR GOVERNMENT BUDGET FOR 2025/26 * Surplus: $2.4 billion * Revenue: $50.2 billion * Expenditure: $ 47.8 billion * Net debt: $38.9 billion * GST revenue: $7.8 billion * Employment growth: 1.75 per cent * Economic growth: 2.5 per cent The nation's wealthiest state is on track to remain an outlier on debt compared to other jurisdictions as it unveils another massive surplus. Western Australian Treasurer Rita Saffioti's second state budget on Thursday delivered a $2.5 billion windfall for the current financial year, with a further $2.4 billion surplus projected for 2025-26. It's the state's seventh consecutive operating surplus, which the Cook government says will help the resource-rich state diversify and set its economy up for the future. "This budget is about fortifying Western Australia from these global shocks," she told reporters at the budget lockup. "We've focused on strong economic management and strong finances. "We could blow all the money and then leave unsustainable debt for our future generations, but we're not going to do that." Net debt is expected to grow to $33.6 billion at the end of the current financial year, $1.1 billion more than forecast in December, and expand to $42.4 billion over the forward estimates. The treasurer said debt was more than $10 billion lower than projected when WA Labor came to office in 2017. At 7.5 per cent of Gross State Product, the state's debt levels are the lowest in the nation, with net debt to GSP forecast to remain well below 10 per cent of GSP over the next four years. By contrast, NSW, Victoria, Queensland and South Australia all have net debt to GSP ratios growing to an average of more than 20 per cent or more over the next four years. WA had gone from having the highest ratio of net debt as a percentage of GSP in the country at 13.8 per cent under the previous Liberal-National government to having the lowest under WA Labor, Ms Saffioti said. WA's relatively lower debt position can be linked to its controversial GST deal, consulting firm Adept Economics said. Debt is climbing rapidly in all states except WA over the next four years, according to the firm's analysis. Victoria has the worst debt outlook, while NSW, SA and Queensland are competing for the second-worst position, it said By 2027-28, gross state debt per capita will be $35,000 in Victoria, $30,000 in SA, $29,000 in Queensland and $28,000 in NSW. Western Australia had the most favourable debt outlook at about $18,000. Ms Saffioti said WA was the most resilient state in the nation and with manageable debt levels. The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said. The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers. WEST AUSTRALIAN LABOR GOVERNMENT BUDGET FOR 2025/26 * Surplus: $2.4 billion * Revenue: $50.2 billion * Expenditure: $ 47.8 billion * Net debt: $38.9 billion * GST revenue: $7.8 billion * Employment growth: 1.75 per cent * Economic growth: 2.5 per cent The nation's wealthiest state is on track to remain an outlier on debt compared to other jurisdictions as it unveils another massive surplus. Western Australian Treasurer Rita Saffioti's second state budget on Thursday delivered a $2.5 billion windfall for the current financial year, with a further $2.4 billion surplus projected for 2025-26. It's the state's seventh consecutive operating surplus, which the Cook government says will help the resource-rich state diversify and set its economy up for the future. "This budget is about fortifying Western Australia from these global shocks," she told reporters at the budget lockup. "We've focused on strong economic management and strong finances. "We could blow all the money and then leave unsustainable debt for our future generations, but we're not going to do that." Net debt is expected to grow to $33.6 billion at the end of the current financial year, $1.1 billion more than forecast in December, and expand to $42.4 billion over the forward estimates. The treasurer said debt was more than $10 billion lower than projected when WA Labor came to office in 2017. At 7.5 per cent of Gross State Product, the state's debt levels are the lowest in the nation, with net debt to GSP forecast to remain well below 10 per cent of GSP over the next four years. By contrast, NSW, Victoria, Queensland and South Australia all have net debt to GSP ratios growing to an average of more than 20 per cent or more over the next four years. WA had gone from having the highest ratio of net debt as a percentage of GSP in the country at 13.8 per cent under the previous Liberal-National government to having the lowest under WA Labor, Ms Saffioti said. WA's relatively lower debt position can be linked to its controversial GST deal, consulting firm Adept Economics said. Debt is climbing rapidly in all states except WA over the next four years, according to the firm's analysis. Victoria has the worst debt outlook, while NSW, SA and Queensland are competing for the second-worst position, it said By 2027-28, gross state debt per capita will be $35,000 in Victoria, $30,000 in SA, $29,000 in Queensland and $28,000 in NSW. Western Australia had the most favourable debt outlook at about $18,000. Ms Saffioti said WA was the most resilient state in the nation and with manageable debt levels. The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said. The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers. WEST AUSTRALIAN LABOR GOVERNMENT BUDGET FOR 2025/26 * Surplus: $2.4 billion * Revenue: $50.2 billion * Expenditure: $ 47.8 billion * Net debt: $38.9 billion * GST revenue: $7.8 billion * Employment growth: 1.75 per cent * Economic growth: 2.5 per cent
Perth Now
19-06-2025
- Business
- Perth Now
Budget billions helps cashed-up state lead debt battle
The nation's wealthiest state is on track to remain an outlier on debt compared to other jurisdictions as it unveils another massive surplus. Western Australian Treasurer Rita Saffioti's second state budget on Thursday delivered a $2.5 billion windfall for the current financial year, with a further $2.4 billion surplus projected for 2025-26. It's the state's seventh consecutive operating surplus, which the Cook government says will help the resource-rich state diversify and set its economy up for the future. "This budget is about fortifying Western Australia from these global shocks," she told reporters at the budget lockup. "We've focused on strong economic management and strong finances. "We could blow all the money and then leave unsustainable debt for our future generations, but we're not going to do that." Net debt is expected to grow to $33.6 billion at the end of the current financial year, $1.1 billion more than forecast in December, and expand to $42.4 billion over the forward estimates. The treasurer said debt was more than $10 billion lower than projected when WA Labor came to office in 2017. At 7.5 per cent of Gross State Product, the state's debt levels are the lowest in the nation, with net debt to GSP forecast to remain well below 10 per cent of GSP over the next four years. By contrast, NSW, Victoria, Queensland and South Australia all have net debt to GSP ratios growing to an average of more than 20 per cent or more over the next four years. WA had gone from having the highest ratio of net debt as a percentage of GSP in the country at 13.8 per cent under the previous Liberal-National government to having the lowest under WA Labor, Ms Saffioti said. WA's relatively lower debt position can be linked to its controversial GST deal, consulting firm Adept Economics said. Debt is climbing rapidly in all states except WA over the next four years, according to the firm's analysis. Victoria has the worst debt outlook, while NSW, SA and Queensland are competing for the second-worst position, it said By 2027-28, gross state debt per capita will be $35,000 in Victoria, $30,000 in SA, $29,000 in Queensland and $28,000 in NSW. Western Australia had the most favourable debt outlook at about $18,000. Ms Saffioti said WA was the most resilient state in the nation and with manageable debt levels. The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said. The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers. WEST AUSTRALIAN LABOR GOVERNMENT BUDGET FOR 2025/26 * Surplus: $2.4 billion * Revenue: $50.2 billion * Expenditure: $ 47.8 billion * Net debt: $38.9 billion * GST revenue: $7.8 billion * Employment growth: 1.75 per cent * Economic growth: 2.5 per cent
News.com.au
22-04-2025
- Business
- News.com.au
Fresh battle to slash investor's neg gearing, capital gains tax perks
A new warning that rent will rise by $83 a week if negative gearing is removed could backfire for investors, with figures showing renters have endured much worse than that since 2020. A fresh battle has broken out as Australia heads to the polls, with investors seeking to maintain their grip on generous tax perks including negative gearing and capital gains exemptions which the Greens have vowed to take away from anyone who owns more than two properties. Research commissioned by the Australian Institute for Progress from Adept Economics warned that abolishing the investor tax concessions would see the return on investment for rentals fall by between 13–16 per cent. Adept Economics director Gene Tunny warned that could see significant rent increases within two years of the policy removal as landlords seek to compensate for higher costs, with 'the modelling predicting rents could be 11 per cent higher than they would otherwise be'. 'This equates to $60 –$95 a week higher in capital cities based on current asking rents, with an average of $83 a week.' Mr Tunny said the removal may see some Australians better off with more people living in their own homes, 'but those stuck in the rental market would be significantly worse off'. But a report by Everybody's Home found capital city renters had already endured worse rental hikes in just four years of as much as $356 a week higher for houses (Sydney) and $279 a week for units (Perth) since 2020. On average rent increased by $185 a week for units and $283 a week for houses compared to 2020, with all reports warning it would get worse regardless in coming years. In Adelaide, units were up $196 a week and houses $256/wk compared to 2020; Brisbane up $199/wk for units and $259/wk for houses; Canberra up $92/wk units and $108/wk houses; Darwin $87/wk units and $281/wk houses; Hobart $42/wk units and $68/wk houses; Melbourne $137/wk units and $207/wk houses; Perth $279/wk units and $352/wk houses; Sydney $201/wk units and $356/wk houses. Everybody's Home spokesperson Maiy Azize said 'to make housing more affordable, we need to get rid of tax breaks when it comes to property, not create more'. 'The Coalition's proposal to allow mortgage payments to be tax deductible for first home buyers is a form of negative gearing for non-investors, a move that will give more help to people on high incomes and could push home prices even higher,' she said. 'Labor's home deposit support for first-home buyers will also add to demand. Building 100,000 homes is a good step, but they aren't guaranteed to be affordable. Australia doesn't just need new homes, we need homes that people can actually afford.' Un-beer-lievable: SEQ costlier than Melbourne for housing, food, grog She said 'in this election, Australians are seeking bold, visionary policies that will make housing affordable for everyone. Parties and candidates who are vying for votes must step up and deliver the policies that will shift the dial on the housing crisis'. 'We continue to call on the federal government to end the social housing shortfall, scrap investor tax breaks for property investors, increase Centrelink payments and protect renters from unfair rent hikes.' Mr Chandler-Mather has vowed to thwart attempts to keep investor tax breaks saying 'Australia has a choice to make: either we give our children and grandchildren the same chance at home ownership that previous generations had, or we continue to give investors with multiple properties billions of dollars in tax handouts. It can't be both.'
