By Jessica Page

Copyright thewest

Treasurer Rita Saffioti has unveiled a much bigger than expected Budget surplus, as other States eye off the GST deal that has added to the Cook Government’s good fortunes.

An end-of-financial year update to the State’s finances confirmed a final operating surplus of $3.7 billion in 2024-25 — above the $2.5 billion that was forecast only three months ago.

However, Ms Saffioti warned against taking the Budget success for granted.

“Our strong financial management is in stark contrast to the record of the WA Liberals and Nationals who lost the triple-A credit rating through record deficits, growth in debt and a disregard for the State’s finances,” she said.

“It subsequently took almost a decade of hard work to reinstate the triple-A credit rating for Western Australia under our Government and because of our responsible financial management we have been able to retain it for the past three years.”

She said the extra windfall was mostly due to the early receipt of a DisabilityCare Australia grant from the Commonwealth, which she vowed will be used to support infrastructure.

WA has recorded seven consecutive Budget surpluses, with the $3.7 billion result in 2024-25 less than the $4.5 billion recorded in 2023-24 but much more than was tipped.

The Government has already allocated $500 million from the extra $1.2 billion towards hospital upgrades.

“By securing a stronger financial position, our government has the capacity to invest more in the initiatives and services that Western Australians need,” Ms Saffioti said.

But the strong result is sure to put pressure on the 2018 GST deal that has guaranteed WA 75 cents for ever dollar of goods and services tax raised, as other States claim they have been short-changed.

The terms of reference for a Productivity Commission review of the GST formula were announced this week, prompting Ms Saffioti to put “team WA” on notice to fight to keep the State’s “fair share”.

Federal Treasurer Jim Chalmers told The West Australian that Federal Labor are “big and enthusiastic backers” of WA and vowed that he is not considering any change to the GST deal.

But Health Infrastructure and Housing Minister John Carey insisted on Friday that the State Government isn’t taking his word for it.

“We welcome the Treasurer’s comments but, ultimately, we don’t trust the other states and so we’re not letting our guard down,” he said.

“We know that we have to fight and defend Western Australia’s position. We’re creating a $500 million (Health Infrastructure) Fund because, unlike other states, we manage our finances well.”

More to come.