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WA State Budget 2024/25 wrap

9 May 2024 12:00 PM | Alice Graham (Administrator)

CCF WA’s annual analysis of capital spending by the State Government’s key civil infrastructure delivery agencies and corporations (in road, rail, water, ports, energy and land development) shows a forecast investment of just over $10 billion in 2024/25, a 7% increase on this financial year and 45% more than 2022/23. Targeted measures include a $400 energy credit for 90,000 small business. 

Of course, those increases are much smaller in real terms due to unprecedented cost escalation in recent years, but government civil infrastructure investment has certainly been high by historical standards in recent years.

Looking ahead, civil infrastructure investment is forecast to dip alarmingly in the final years of the Budget cycle, 2026/27 and 2027/28.

Agency summaries

Below is a quick summary of key takeaways for the infrastructure agencies and corporations. Next week we’ll publish an update of our Member-exclusive civil works pipeline to include all new announcements.

Main Roads’ asset investment program is $2.15 billion in 2024‑25, down from $2.56B this year and an even more significant fall in real terms. There’s only one new project announced – the $38M Congdon St Bridge replacement. Main Roads’ capital spend is forecast to fall to $650M by 2027/28 – this will probably grow by the time we get there but it’s a worrying figure. We know Main Roads has plenty of projects in planning, and there’s no doubt strong ongoing investment in our road network is desperately needed. Where are the projects in the pipeline?

The Public Transport Authority's Asset Investment Program for 2024/25 is $3.05 billion – down from $3.64 billion in the current FY. Most of that will go towards the METRONET projects: Byford Rail Extension and the Armadale Line Upgrade top the list with over $500 million each in 24/25. The PTA’s spending plummets in the forward estimates, down to just $258 million in 2027/28.

Western Power’s asset investment program in 2024/25 is $1.37 billion, reflecting strong investment in decarbonisation initiatives, distribution networks, transmission capacity, and grid improvements. Unlike the transport agencies planned investment remains strong in future years up to 2027/28, the final ‘outyear’ in this Budget. Horizon Power will invest $189 million in 2024/25, with fairly strong investment in future years though not as consistent as Western Power’s.

Water Corporation’s $1.7 billion capital investment in 2024/25 includes nearly $600 million on the Alkimos Seawater Desalination Plant (ASDP) and associated works. A strong regional asset program includes $45 million for a new water treatment plant in Onslow and $43 million towards upgrading the capacity of the Burrup Seawater Supply Scheme. Water Corporation’s AIP will peak at just over $2 billion next year as the ASDP ramps up, declining to just over $1 million in 2027/28.

The five port authorities (Fremantle, Mid-West, Kimberley, Pilbara and Southern) are planning another strong year, with a combined asset investment of more than $800 million in 2024/25 followed by nearly $850 million in 2025/26. The Pilbara Port Authority will account for more than half of that through ongoing investment at Port Hedland and Dampier, with the Mid West Port Authority spending $270 million over the next two financial years on the Geraldton Port Maximisation Project.

The state government-owned land developer DevelopmentWA will invest $681 million in 2024/25, with a focus on industrial and affordable residential projects including $35 million for the creation of development-ready land in the Kimberley, Karratha and Goldfields, plus ongoing works at Ocean Reef Marina.

Complementing the State’s civil infrastructure spend is investments in building new and upgraded schools ($608 million) and hospitals ($864 million).

Budget measures for businesses

Not much targeted relief for businesses in this Budget. The State Government has committed to reducing green tape and streamlining approval processes for major projects, and 90,000 small business will receive a $400 energy credit.

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Phone:  (08) 9414 1486
Email: General enquiries

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Jandakot WA 6164

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