The Western Australian government has foreshadowed a state budget with housing as the “number one priority”, with targeted cost-of-living relief and health infrastructure also set to be key features.
Exactly how much money will be set aside to tackle each issue, and how much of it will help Western Australians, will be unveiled later today.
Mia John Toru hopes the budget will provide some relief. (ABC News: Cason Ho)
Single mother-of-five Mia John Toru has her fingers crossed this year’s budget will help make her life a little easier.
Her biggest worry is how expensive it has become to keep a roof over her family’s heads, especially after moving into a slightly larger home.
“I pay $730 a week, and that’s almost, that’s 48 per cent of my salary,” she said.
Her landlord is looking to sell the home, and she is dreading having to foray back into the housing market as prices and the cost of renting continue to soar.
Mia John Toru pays almost half her salary in rent. (ABC News: Cason Ho)
“I think it’s just going to keep going up,” she said.
“I wish the government could give everyone a first home … you only need one home, so that you can call it your family home.”
A home for everyone is also an issue Premier Roger Cook has said he is working on.
Roger Cook has said that housing is a priority.
(ABC News: Keane Bourke)
“My government’s priority is to ensure every Western Australian has a place that they can call home,” he said yesterday.
What’s in this year’s budget?
Several state budget measures have already been announced to tackle housing supply, including funds to build new homes for first-time buyers and regional workers, and additional social and affordable housing.
An extra $2 billion, shared between the state and Commonwealth governments, is expected to deliver 34,000 new homes, including 11,000 set aside for first home buyers.
The government yesterday announced an extra $1.5 billion would also be spent over the next four years for 1,591 new social and affordable homes.
A number of budget measures have already been unveiled to tackle housing supply, (ABC News: Peter Garnish)
And on the morning of the budget, Treasurer Rita Saffioti announced stamp duty concessions and exemptions for first home buyers would be lifted by $100,000, at a cost of around $297 million.
Raising the stamp duty exemption threshold to $600,000 will almost double the number of eligible homes listed in the Perth metropolitan area on realestate.com.au to 531, up from 271.
Taking the concession threshold to $800,000 will have a similar effect, making 2,349 properties potentially eligible, compared to 1,161 without the change.
The state government has flagged that targeted measures will remain its preferred way of tackling the cost of living, as opposed to broader measures.
The treasurer will deliver the budget speech at parliament later today. (ABC News: Courtney Withers)
One-off rent relief payments for people at risk of eviction will stick around, and free public transport on Sundays and for school students will become permanent.
Some measures yet to be announced include whether student assistance payments will be continued to help families with school expenses, and what relief measures will be made available for utility bills, such as water and electricity.
Health infrastructure is also on the agenda, with an additional $1.5 billion set to go towards hospitals and beds; the state budget will reveal how much of this will go towards cost blowouts for existing projects.
Rising costs mean little savings
Like many Australians, Ms Toru is thrifty; she buys all her groceries and household needs in bulk, and does not spend much on luxuries like fast food.
But as her pay stretches thinner and thinner to keep up with rising costs, even affording necessities and building a savings account has become nearly impossible.
Mia John Toru working out her bills. (ABC News: Cason Ho)
“Before 2024, like, I was able to save some money, you know?” she said.
“But now, I can’t afford to do some savings … I earn a decent income. Even a decent income can’t save.”
Expenses like a gym membership have become luxuries, as food and fuel take up a growing chunk of her income.
“I put that [gym] on pause recently, only because diesel went up,” she said.
“I need to cover the basics and the essentials, make sure our bills [are paid].”
Ms Toru wants to see cost-of-living relief in this year’s budget, but also longer-term funding to meaningfully address the issues driving up those costs, such as housing supply.
“It’s always good to get some relief, but I always say I think it’s the wrong relief they’re looking at.”
She hopes this year she is the one who is wrong.