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					           2009-10

Budget
       Kimberley Region

 14 May 2009
                         Economic Growth
                  Western Australia, Annual % Change

 Percent
10
                                                                           Forecast

 8


 6


 4


 2


 0


-2
     1990-91   1993-94   1996-97   1999-00   2002-03   2005-06   2008-09     2011-12



2009-10 Budget
                      Gross State Product
                               Western Australia
Real
$ billion
180                                                                   Forecast

160

140

120

100

 80

 60

 40

 20

  0
      1990-91   1993-94   1996-97   1999-00   2002-03   2005-06   2008-09    2011-12


2009-10 Budget
                     Real Business Investment*
                                                   Western Australia

$ billion (2006-07 Prices)
60
                                                                                                            Forecast
50


40


30


20


10


  0
     1989 -90        1992 -93          1995 -96          1998 -99          2001 -02   2004 -05   2007 -08   2010-11
       * Adjusted for sale of Dampier to Bunbury Natural Gas Pipeline in 1997-98



2009-10 Budget
            Supporting the State’s Economy
                                  Asset Investment Program

$ billion
                                                                              Forecast
            General Government
  8         Public Corporations



  6



  4



  2



  0
      1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12



 2009-10 Budget
              WA’s Key Export Markets
          Weighted Average Economic Growth, % Change

Percent
8
                                                                           Forecast

6


4


2


0


-2
     1990   1992   1994   1996   1998   2000   2002   2004   2006   2008     2010



2009-10 Budget
                    Unemployment Rate
                            Western Australia

Percent

10
                                                                 Forecast
9
8
7
6
5
4
3
2
1
0
     1993-94   1996-97   1999-00   2002-03   2005-06   2008-09      2011-12



2009-10 Budget
                     Overview

• 2009–10 Budget
   – Protecting jobs and supporting the State’s
     economy
   – Securing the State’s economic future
   – Supporting families and our community
   – Protecting the State’s finances




2009-10 Budget
             Jobs Protection Package
                     Overview

• Payroll tax rebate
• Training and skills package
• Small business resilience and tourism
  boost
• Supporting jobs through infrastructure



2009-10 Budget
             Jobs Protection Package
                    Payroll Tax Rebate

• $100 million rebate for small business
   – One-off stimulus measure
   – Full rebate for firms with national payrolls up to
     $1.6 million, with a partial rebate for payrolls up
     to $3.2 million
   – Just over half of all tax paying employers will
     benefit
• Exemption for parental leave and
  emergency service volunteer work

2009-10 Budget
             Jobs Protection Package
                 Training and Skills Package

• $47.4 million over three years
   – Targeted training and skills recognition
   – Provision of course fee exemptions for eligible
     unemployed Western Australians
   – Assistance to those disadvantaged in the labour market
   – Additional resources for a critical support unit to support
     those affected by the economic downturn
   – Rebate of workers’ compensation premiums for first year
     apprentices and trainees in 2009-10 and 2010-11
• $150,000 over two years for industry-based
  training programs

2009-10 Budget
             Jobs Protection Package
        Small Business Resilience and Tourism Boost

• $5.7 million boost in 2009-10 for tourism
  marketing
• $2 million over two years for a Business
  Resilience Package




2009-10 Budget
             Jobs Protection Package
            Supporting Jobs through Infrastructure

• Record $8.3 billion in 2009–10
• $316 million for more than 1,000 new
  dwellings in 2009–10
   – Together with additional Commonwealth funding,
     some 2,600 new public houses over four years
• $300 million boost to the education
  infrastructure program – 14 schools
   – Together with additional Commonwealth funding,
     all schools receive funding to add or upgrade
     facilities

2009-10 Budget
             Jobs Protection Package
            Supporting Jobs through Infrastructure

•   $654 million on road construction
•   $572 million for health–related infrastructure
•   $377 million for Ports across the State
•   $619 million for Royalties for Regions
    – Country Local Government Fund
    – Regional Community Services Fund
    – Regional Infrastructure



2009-10 Budget
Securing the State’s Economic Future
                 Overview

• Encourage private sector investment
• Asset Investment Program
• Land tax reform




2009-10 Budget
Securing the State’s Economic Future
            Encouraging Private Sector Investment

• Streamlining approvals processes
• Regulatory reforms
   – Red Tape Reduction Group
   – Regulatory Impact Assessment process
• State building projects
   –   Oakajee Port and Rail project
   –   James Price Point LNG Precinct
   –   Gorgon LNG project
   –   Northbridge Link

2009-10 Budget
Securing the State’s Economic Future
                 Asset Investment Program

•   $220 million for Ord Stage 2
•   $263 million for two 100–megawatt gas turbines
•   $1.1 billion investment in water
•   $300 million for the Pilbara Revitalisation Plan
•   $147 million for the Northern Suburbs Railway to
    Brighton
• $35 million for the Australian Marine Complex


2009-10 Budget
Securing the State’s Economic Future
         Asset Investment Program in the Kimberley

• $13.5 million on the Broome Wastewater Treatment
  Plant
• $25.1 million to improvements and construction of 2
  bridges on Great Northern Highway, Halls Creek to
  Argyle Diamond Mine turn-off
• $400 million over four years (State-wide) for the
  Country Local Government Fund under the
  Royalties for Regions program
• $50 million over four years (State-wide) for the
  Community Resource Centres under Royalties for
  Regions

2009-10 Budget
Securing the State’s Economic Future
         Asset Investment Program in the Kimberley

• $15.5 million on electrical infrastructure in
  2009-10, including:
   • $8.3 million on network enhancements in Broome
     and Kununurra; and
   • $2.9 million on customer driven works in Broome
     and Kununurra
• $220 million Ord - East Kimberley Expansion
  Project


2009-10 Budget
Securing the State’s Economic Future
                    Land Tax Reform

• 2008-09 land tax / MRIT rates reduced by
  an average of 7% (or $43 million)
• 50% cap on growth in land values
   – Reducing excessive volatility in land tax bills
   – Making budgeting easier for businesses
• Re-introduction of developers concession
• Extension of time to pay


2009-10 Budget
                     Better Services

                            Spending in     $ %
                               2009-10

  Health                         $5.1 b   $282m   5.9
  Education and Training         $4.1b    $419m 11.4
  Law, Order and Safety          $2.2 b   $68m    3.3
  Disability Services           $471 m    $33m    7.6
  Child Protection              $376 m    $30m    8.7



2009-10 Budget
                 Better Services
                        Health

• Increased health services across the State
  including
   – $27 million in 2009-10 for the Friend-in-Need
     Emergency initiative
   – $18 million in 2009-10 for patient transport
     services
• An extra $420 million over 5 years to meet
  increased demand for health services
• Implementation of the Four-Hour Rule

2009-10 Budget
                        Better Services
                                       Health

• Investing in new and expanded hospitals
  – New Children’s Hospital in Perth
        Commencement of $117 million forward works program fast-tracked
  – Fiona Stanley Hospital
  – $227 million for Stage 1 of Joondalup Health Campus
  – Royal Perth Hospital
        Retain as tertiary facility
  – In the regions
        New hospitals in Albany and Busselton
        Redevelopments proceeding for Kalgoorlie and Nickol Bay



2009-10 Budget
                 Better Services
                 Health in the Kimberley

• $14.8 million will be spent in 2009-10 on
  Health infrastructure including:
   • $9.6 million for the Broome Hospital –
     Redevelopment Stage 1;
   • $2.7 million for the Broome Mental Health Unit;
     and
   • $2.5 million for the Wyndham Multi Purpose
     Health Centre



2009-10 Budget
                 Better Services
                        Education

• Improving public education services through
  initiatives to improve student behaviour
   – Additional 50 school psychologists
   – More behaviour centres and school chaplains
   – Training to assist and empower teachers in the
     classroom
• Improved wages and conditions for teachers



2009-10 Budget
                 Better Services
                     Education

• 32 schools to be built or significantly
  upgraded over six years
  – 15 High Schools at an average cost of
    $39 million
  – 17 Primary Schools at an average cost of
    $15 million
• $50 million for School Capital
  Improvements Program

2009-10 Budget
                  Better Services
                 Education in the Kimberley

   • $1.2 million for Trade Training Centre
     infrastructure at Broome SHS, scheduled for
     completion in 2010-11
   • $2 million for a new Fitzroy Crossing Training
     Centre




2009-10 Budget
                  Better Services
                  Law, Order and Safety

• Improving law, order and safety
   – $208.5 million for additional police personnel
   – $48.8 million to expand the Perth Metropolitan
     Radio Network
   – $47.3 million
       volunteer marine rescue services
       new Brigade Alarm Network
   – $113 million for the Perth Police Complex
   – $24 million on a replacement police helicopter

2009-10 Budget
                  Better Services
                   Law, Order and Safety

• $655 million over five years towards an
  additional 1,657 prison beds
   –   new 350 bed prison in the Eastern Goldfields
   –   387 beds at an expanded Acacia Prison
   –   new 150 bed Derby Prison, and the Wyndham work camp
   –   80 bed prison for young offenders
   –   two new work camps in Warburton and the Wheatbelt
   –   Banksia Hill Detention Centre



2009-10 Budget
                  Better Services
           Law, Order and Safety in the Kimberley

• $7 million to replace the Police Station at
  Fitzroy Crossing
• $89.4 million for extensive works to be
  undertaken on the West Kimberley Prison at
  Derby and Work Camp at Wyndham
• $1.5 million to complete the FESA
  Emergency Services Centre in Kununurra.
• $1.3 million to complete the FESA Volunteer
  Co-location in Derby.

2009-10 Budget
                    Better Services
                          Social Services

• Boost for disabilities - $142 million for increased
   –   accommodation support
   –   respite
   –   disability professional services
   –   alternatives to employment
   –   cost increases
• Boost for child protection
   – $30 million (8.7%) increase to meet demand
   – $77.8 million for residential care for children


2009-10 Budget
                     Better Services
                 Social Services in the Kimberley

  • Ex-gratia payments under the Redress WA
    Scheme for those who suffered abuse while in
    State care
  • 33 extra Child Protection front-line workers
    across the State
  • Increased resourcing for child protection
  • $80 million for community sporting and
    recreational facilities over four years


2009-10 Budget
                     Better Services
                 Social Services in the Kimberley

  • 84 new dwellings will be constructed in the
    Kimberley Region
  • First of 5 Out-Of-Home Respite Facilities
    will be constructed in Broome this year and
    will provide support to at least 50 families
    every year




2009-10 Budget
                 Better Services
                        Seniors


 • Cost of Living rebate
    – $100 for singles; $150 for couples
 • $200 rebate for home security devices
 • Free off-peak public transport
 • Country Age Pension Fuel Card




2009-10 Budget
                 Remote Services

• $2.8 million towards the COAG Remote
  Service Delivery model for Indigenous
  Communities
• $7m in 2009/10 to the Kimberley
  Development Commission for the Regional
  Grants Scheme under the Royalties for
  Regions program



2009-10 Budget
           Protecting the State’s Finances
                                                  Budget Surplus

   $ million
3,000
                                                                                                               Forecast

2,000



1,000



     0



-1,000
         1998-99         2000-01         2002-03         2004-05          2006-07         2008-09         2010-11          2012-13
               Deficits currently projected at the end of the forward estimates period. Operating surpluses in the medium term.
               There is time for further corrective measures if economic conditions do not improve.


 2009-10 Budget
                          Financial Outlook
                                Revenue Growth

Percent
 20
                                                          Forecast
 18

 16

 14       Average =
          8.9% p.a.
 12

 10
                                                              Average =
  8
                                                              3.1% p.a.
  6

  4

  2

  0
      2001-02         2003-04   2005-06   2007-08   2009-10          2011-12


 2009-10 Budget
                                    Financial Outlook
                          Taxation, Royalties, GST Revenue

    $ million
12,000
                GST                                             Forecast
                Royalty Income
10,000          Land Tax
                Payroll Tax
                Duty on transfers
 8,000


 6,000


 4,000


 2,000


     0
         2001-02            2003-04     2005-06   2007-08   2009-10        2011-12


  2009-10 Budget
                 Financial Outlook

• Net debt projected to be $19.1b by
  30 June 2013
   – Affordable and consistent with triple–A
   – Net interest cost as a share of revenue rising to 4.2%
     (below 5% target limit)
• Higher net debt reflects
   – Declining operating surplus
   – Infrastructure investment that is essential for the
     economy, jobs, and the long–term


2009-10 Budget
        Protecting the State’s Finances
                        Corrective Measures

• $7.6 billion in corrective measures, including 3%
  efficiency dividend
    – 97% of efficiency dividend target has been achieved
• Essential and achievable initiatives
    –   $3.0 billion from the Capital Works Audit
    –   $1.8 billion from the Efficiency Dividend
    –   $1.1 billion from Economic Audit Stage 1
    –   $546 million resulting from electricity tariff changes
    –   $250 million for surplus land sales


2009-10 Budget
         Protecting the State’s Finances
                          Corrective Measures

 • Without measures – unsustainable deficits
   $ million
1,000
                                     2009-10 Budget
                                     Excluding Corrective Measures
  500


     0


 -500


-1,000


-1,500


-2,000         2008-09   2009-10   2010-11           2011-12         2012-13


 2009-10 Budget
      Protecting the State’s Finances
                        Economic Audit

• Review of operational and financial
  performance of the Western Australian public
  sector
• Value for money focus
• Two stage approach
   – Stage 1 complete with total savings of $1.1billion
   – Stage 2 due September 2009
         Identify strategies for improved performance and
          management of the Western Australian public sector

2009-10 Budget
                 Conclusion

 • Protecting jobs and supporting the State’s
   economy
 • Securing the State’s economic future
 • Supporting families and our community
 • Protecting the State’s finances




2009-10 Budget
               2009-10

Budget
 14 May 2009

				
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