What’s in the federal budget for WA? Your cheat sheet
Scratching the surface of the headline cost-of-living measures in the Albanese government’s third budget shows that it also includes plenty of funding for road and rail infrastructure in Western Australia, as well as lucrative tax breaks for companies considering setting up hydrogen and critical minerals operations in Australia.
Australia’s Treasurer Jim Chalmers (L) and Prime Minister Anthony Albanese arrive before Chalmers delivers his budget speech at Parliament House.Credit: Tracey Nearmy
Metronet relief for WA government
The federal budget includes $8.9 billion for road and rail infrastructure which includes $1.4 billion in extra funding to cover the enormous cost blowouts that have dragged on the Metronet budget in the past year.
Confirmation her federal counterparts will foot their share of the bill will be a welcome relief to WA Treasurer Rita Saffioti who, at her budget release last week, said she had received informal confirmation that the feds would hold up their end of the bargain but had not received anything in writing.
In addition to the blowouts, the Commonwealth will also tip $300 million extra into modernising communications technology along the entire rail network.
On roads, the government will also provide $54 million for the regional road safety program and $53.6 million for the Great Northern Highway Brooking Channel bridge replacement which forms part of $132.8 million worth of upgrades to that important transport link.
The Commonwealth will also keep funding its portion of the Perth City Deal, to the tune of $165.2 million.
Tourism surprises
Some surprise funding for tourism projects – $7.4 million for a marine discovery centre at the Busselton jetty, and a $50 million contribution to the Aboriginal Cultural Heritage Centre, to be built on the City of Perth car park next to the Supreme Court Gardens. There’s a way to go though considering the state government’s 2021 cost estimate of $400 to $500 million for the centre.
Resources tax breaks
A less tangible, but equally important part of this federal budget for WA are the lucrative tax breaks on offer for companies wanting to establish hydrogen and critical minerals projects in Australia as part of its Future Made in Australia initiative.
The hydrogen production tax incentive will see the Commonwealth forgo about $6.7 billion in company tax revenue over the next decade as an incentive to hydrogen companies to make their projects commercial sooner.
The federal government will also expand its $2 billion hydrogen head-start program by $1.3 billion to subsidise losses made by companies producing renewable hydrogen.
A similar tax incentive is on offer for critical minerals companies which will cost the government $7 billion over the next decade.
The scheme was aimed at boosting investment in refining and processing the 31 critical minerals currently identified on the government’s list.
Despite this support, the WA government’s hopes of the Commonwealth stumping up half the costs to build a common-user critical minerals processing facility were dashed.
The government hoped the feds would pay $100 million for the $200 million project but instead the budget only mentions that it will partner with states and territories to complete “pre-feasabilty studies” for facilities like this.
Cancer centre funding
While the Commonwealth isn’t sold on a critical minerals processing facility it is still red-hot on the comprehensive cancer centre promised by the former Morrison government in 2022.
More than $372 million is still sitting in the budget papers despite the WA government not wanting to match the feds’ funding until it finishes a business case for the project, which the Harry Perkins Institute of Medical Research first floated.
The business case was expected to be finished in March this year.
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