Conveyance duty, payroll tax and mining royalties have all contributed sharply higher revenue in the three months to September 2006, setting up the state government for another large annual budget surplus.
Conveyance duty, payroll tax and mining royalties have all contributed sharply higher revenue in the three months to September 2006, setting up the state government for another large annual budget surplus.
The state achieved an operating surplus of $295 million in the September quarter, according to a treasury report released today.
This was down from the $518million surplus recorded for the same period last year, due largely to timing differences associated with the issue of land tax assessments.
The state did not record any land tax revenue in the September quarter, compared with $267 million in the same period last year.
Where a like-for-like comparison was possible, the state recorded large increases.
Conveyance duty revenue increased 58 per cent to $541 million, which treasury said was due to the impact of sustained property market activity.
Payroll tax revenue was up 20 per cent to $399 million due to strong wages and employment growth in industries like mining, property and business services, and manufacturing.
Royalty income was up 25 per cent to $341 million reflecting higher production volumes and prices for iron ore, nickel, gold and other minerals.
Total revenue increased 4.1 per cent to $4.1 billion.
On the spending side, total expenses increased by 11.2 per cent to $3.8 billion.
Treasurer Eric Ripper said a $200million underspend by agencies in 2005-06 contributed to expense growth.
Higher public sector salaries and increased employment also contributed to the increase in total spending.
The state government has forecast a budget surplus of $1.3 billion in the year to June 2007.
The Treasurer's statement is pasted below:
The strength of Western Australia's economy has been confirmed again today with the release of the September Quarterly Financial Results Report.
Treasurer Eric Ripper said the report showed the State's finances remained in good shape, with the Government on track to deliver its sixth operating surplus in a row.
Mr Ripper said every cent of the surplus was being used to build infrastructure like schools, hospitals and police stations and to reduce the debt burden on future generations.
"Prudent economic management is enabling the State Government to invest more than ever before in infrastructure, while at the same time keeping debt at record low levels," he said.
"Our debt reduction strategy is saving taxpayers $150 million a year in interest payments and that is money which can instead be used to fund better services in future years."
The Treasurer said the operating surplus for the first three months of 2006-07 was $295 million, down from the $518million recorded for the same period last year.
The lower surplus outcome was due in part to timing differences associated with the issue of land tax assessments.
Commonwealth grants were up $121 million compared with the September quarter in 2005-06; conveyance duty receipts were up $199 million; and payroll tax receipts were up $68 million.
Mr Ripper said a $200 million underspend by agencies in 2005-06 had contributed to expense growth.
"Some of that money has been carried over to this year, which has the effect of inflating the expense growth figure for the quarter," he said.
Other factors included higher salaries for teachers, increased hospital staff numbers and increased direct patient costs in the health sector, including higher prices for food and drug supplies and medical equipment.
The Treasurer said while the Government was on track to deliver a sixth surplus, caution should be exercised in extrapolating the likely outcome for the year on the basis of the quarterly result.
Mr Ripper said the quarterly results would be factored into the mid-year review of State finances, due to be released by the end of December.