Despite the trials and tribulations of 2020, Western Australia is experiencing strong economic recovery that is exceeding expectations with property one of the key drivers.

During the budget handed down in early October, the forecast for this financial year stood at a net operating surplus of $1.2 billion. This has since had to be revised up by $1 billion to $2.2 billion.

At the same time, net debt projections have been revised down since the budget by $1.4 billion to $41.4 billion by 30 June 2024.

This month, Treasurer Ben Wyatt announced that WA’s economy is on track to achieve the revised estimated surplus of $2.2 billion following a strong property market, vehicle sales and growing employment. As a result also, more funds are flowing into the government’s coffers with projected taxation revenue revised up by $1.1 billion over the four years to 2023-24. This has resulted in a number of major infrastructure and other initiatives being included in the mid-year review.

The Real Estate Institute of WA (REIWA) has welcomed the news that WA is well on its way to a recovery, following COVID-19.

REIWA CEO Neville Pozzi said, “These results show the crucial role the WA property market plays in WA’s economic success.”

Mr Pozzi said the sales market is doing well however the rental market continues to experience a severe shortage of stock, which the Building Bonus will only be able to contribute to in a very limited way, adding that this is still about a year down the track.

“The government should look to introduce short-term incentives to get investors back into the established market, to provide urgent housing relief,” he said.

Mr Pozzi also talked about the need for the government to seriously consider implementing long-term tax reforms, such as a change to the stamp duty system as other states have done.

“If those states reporting billions in deficit can review their tax systems, WA’s strong financial position means we are even better placed to do so,” he said.