The federal budget is set to be handed down on Tuesday evening, with major promises for Western Australia including big spending on infrastructure and housing already announced.
Treasurer Jim Chalmers will unveil the largest change to property taxes this century, deep cuts to the NDIS and measures aimed at cutting business costs that will break election promises while mapping out plans to deliver affordable housing to young Australians.
Federal Member for Curtin, Independent MP Kate Chaney, said while some pre-announced measures were welcomed, the test would be simple.
“Will it be bold reform that sets Australia up for the future, or short-term politics dressed up as ambition?,” she said.
Chaney said she was supportive of reforms to negative gearing and capital gains tax, describing them as “long overdue for WA” with both rents and house prices “far outpacing” incomes.
“It’s long overdue, but the detail [on capital gains tax changes] matters,” she said.
“Which assets are affected, how the transition works and whether it’s designed carefully enough to level the housing market without discouraging investment in small businesses and startups.”
Other major wins, Chaney said, included the fact critical minerals projects in WA would likely benefit from an incentive paid to the states for more efficient approval processes, given there is significant potential for powering the global energy transition locally.
“There are also important aged care wins – the government has reversed its plan to charge co-payments for basic personal care … and committed funding for more residential aged care beds, urgently needed in WA where 350 older West Australians are currently waiting in hospital for a place,” she added.
“The promised retention of the WA GST deal is also welcome.”
But Chaney said her biggest concern was reforms to the NDIS.
“Reform is necessary because the scheme’s growth is unsustainable, but any changes must be developed in genuine consultation with people with disabilities, and no one should lose their NDIS support until alternative supports are actually in place,” she said.
Gas companies, in WA and nationally, are also not pulling their weight in royalty payments, Chaney said.
“I would like to see broader tax reform, shifting more of the tax burden from workers to passive income and indexing tax brackets,” she said.
“Bracket creep silently claws back wages every year and indexing the brackets is the structural fix that actually lasts.”
Federal Member for Perth, Labor MP Patrick Gorman, said the budget would be about making sure West Australians had a secure roof over their head.
“The opportunity to go and get a good education and a good job, by locking in things like our free TAFE measures, and making sure that we lock in the other things the Australian people have endorsed … like Medicare Urgent Care Clinics,” he said.
“I always believe that budgets should focus on the next generation more than they focus on the next election.
“I would say this is a budget of reform.”
WA Treasurer Rita Saffioti said one of the key areas of focus in the federal budget was housing supply, an area which matched the state’s budget which was handed down last week.
“In particular, the commitment over the weekend – additional infrastructure to local governments, plus partnering with the state with the $2 billion housing rollout, so we’re very keen to make sure housing is the number one priority,” she said.
“Once the decision is handed down we will be able to provide more comment. I’m not going to speculate … but from my perspective, it’s about housing and it’s about infrastructure.”
A key infrastructure deal already inked promises $552 million from the federal government for crucial road connections to the proposed future Westport container terminal in Kwinana.
Funding will deliver the first stage of significant upgrades to Anketell Road including expanding the road to four lanes between Leath Road and Abercrombie Road and a grade separation at Rockingham Road.
Holly Thompson is a journalist with WAtoday, specialising in education and the environment.Connect via X or email.
