Bad news budget hits plenty in WA

The WA government has clawed back cash in its state budget by increasing land tax and cutting concessions.

If you are looking to buy a home or drive a car in Western Australia, you may be in for a shock with your family budget.

Treasurer Troy Buswell revealed his $6.8 billion "fiscal action plan" to claw back cash for the state in the budget handed down on Thursday.

The treasurer said there would be new revenue measures over the next four years including public sector reforms, program evaluations and cuts, and re-prioritising the government's asset investment program.

There will be a 12.5 per cent increase in land tax, which is expected to raise $73 million this financial year.

The private vehicle concession for motor vehicle registration fees will also be halved from $72 to $36 in January next year to raise $21 million.

People on 457 visas will also be expected to pay $4000 from January next year for their children's education.

Mr Buswell said the number of eligible students had increased from 290 in 2005 to 8600 this year, which had been expensive for the government.

The fee will raise an estimated $17 million in 2013/14 and a total of $120 million over four years.

A further $125 million is expected to be saved with a delay in the abolition of a transfer duty on non-real business assets such as intellectual property.

That figure is expected to total $527 million over four years.

Mr Buswell also announced the establishment of a committee to review existing government programs and services - with a view to cutting those that are unsustainable - as well as sunset clauses on new programs, meaning ongoing funding won't be a given.

The treasurer also explained the fiscal impact of public sector cuts already announced - an estimated $2.9 billion in savings over four years after the loss of more than 1000 workers.

There will be a new public sector wages policy introduced in November, capping wage and condition increases to projected growth in the CPI.

The average household will pay an extra $234.98 this year due to increases in utilities charges, but Mr Buswell insists that is still a better deal than in other states.

Mr Buswell said WA's population had grown 3.4 per cent in the year to December 2012, putting pressure on housing supply and the $7000 first home owners grant.

First home buyers will now be granted $10,000 for those purchasing or building a new home and $3000 for established houses, compared to $7000 for both kinds of purchases previously.

This will come into effect on September 15, pending legislative amendments.

Mr Buswell said the move aimed to give people an incentive to build new homes, easing the state's housing shortage.


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Source: AAP


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