West Aussie families doing it tough will be handed another $400 power bill discount from July, as part of the centrepiece of Treasurer Rita Saffioti’s first budget which she says “rises to the challenge” of the cost of living crisis.
In a widely anticipated move, Ms Saffioti announced the power credits, to be automatically applied to 1.1 million of households in two parts, which spearheads a 2 per cent drop in an average family’s spending on fees and charges, or $124.
After announcing a payment to families of school-aged children of up to $250 ahead of the school term, Ms Saffioti said WA delivered “tangible” cost of living relief because of responsible financial management.
WA’s move comes as Queensland announced a $1000 power discount last week, while the Victorian Treasurer announced a $400 school expenses payment on Tuesday,
“We’ve been able to do both,” Ms Saffioti said.
“We have to get the balance right on what’s affordable but also understanding that we’ve also had other cost of living initiatives that we’ve released.”
The $400 would be split, with $200 credits applied first in July or August bills, and a second in December or January, which Ms Saffioti said in line with peak power usage, and not in line with the timing of the State Election, in March.
More than 90,000 small businesses will also get access to the $400 credit.
Savings to households also include a previously announced $280 in reduced costs for student public transport fees, and included a $100 rise in a travel subsidy for regional pensioners, and an extension of the country airfare price cap.
However, the credit covers over an increase in utility costs of 2.5 per cent, and a 5 per cent increase in the emergency services levy, due to the increase threat of bushfires and natural disasters.
Vehicle licence charges, including car rego, will climb 3.9 per cent for the average household, while motor injury insurance is set to climb by 2.5 per cent.
Government modelling shows the savings for the following household types.
· A family with two school-aged kids – $1460 saved
· Young parents with a newborn baby who are currently renting and saving for their first home – $700 saved
· A self-funded retiree with a WA Seniors Card – Almost $900
· A family with two schoo laged kids with eligible concessions – more than $3500
· A student who is studying nursing at TAFE, and is currently renting – up to $2575
· A pensioner with eligible concessions living in regional WA – more than $3000
· A pensioner with eligible concessions in Perth – up to $2400