West Australians could be slugged with two more interest rate hikes before Treasurer Rita Saffioti delivers her State Budget — heaping pressure on the flush Cook Government to provide significant cost-of-living relief.
The WA Treasurer has revealed May 7 is the date of this year’s Budget, two days after the Reserve Bank of Australia meets to consider whether to shift interest rates amid unknown global economic consequences from the conflict in the Middle East.
The RBA board already lifted interest rates in February by one-quarter of one per cent and is tipped to raise the rate again this week.
Three interest rate hikes by May would see West Australians having to fork out thousands of dollars more in home repayments, with the average mortgage in WA now above $600,000.
Federal Treasurer Jim Chalmers will also have to contend with a tough set of figures when he delivers his Federal Budget on May 12, with reports inflation was now heading to the upper 4 per cent range in the face of the escalating war.
Ms Saffioti has already ruled out more power bill credits this year, with concerns they would simply add to inflationary pressures.
“In a time of global uncertainty, our experienced team will do what’s right for WA by keeping our economy strong and responsibly managing the State’s finances,” Ms Saffioti told The Sunday Times.
“This Budget will deliver real support for Western Australian families, while continuing to deliver on our priorities of jobs, health and housing.”
On top of rising interest rates, the Middle East conflict is pushing up oil and petrol prices — and by extension is expected to also push the price of many goods and services higher.
If the conflict drags on much longer, there are fears higher transport costs, higher costs for farmers and business will filter down to already strained family budgets.
A shortage of housing in WA, escalating costs to buy limited numbers of properties, and rising rents, has seen Ms Saffioti nominate housing as a key issue for her Budget.
“We’ve recently announced a major expansion of stamp duty concessions to help deliver more apartments, townhouses, villas or units off the plan or under construction,” Ms Saffioti said.
“We’re looking at a range of measures to build more homes, unlock and deliver more land supply, and help first-homebuyers into the market.
“We’ll have a lot more to say on those initiatives closer to the Budget.”
Delivering $3.4 billion in election promises — which includes new emergency departments at Sir Charles Gairdner, Royal Perth and Midland hospitals — will be key funding areas.
“At the same time, we are continuing to deliver our record Building Hospitals program announced last year and invest in the energy transition to create local jobs,” Ms Saffioti said.