West Australians will get hundreds of dollars off their electricity bills under a multimillion-dollar package in next week's state budget aimed at shielding households from rising cost of living pressures.
Following signals from Premier and Treasurer Mark McGowan that the government would deliver relief to struggling families, it is understood the government will provide credits toward people's electricity bills.
The move would be a re-run of a decision in late 2020, when the state gave each residential electricity customer a $600 credit towards their bill in a handout that cost taxpayers about $600 million.
That giveaway was widely seen as a political success for the government, which branded the money as a reward for taxpayers who successfully bankrolled the state's pursuit of the late Alan Bond's collapsed Bell Group.
While the size of the credit to be outlined on Thursday is not known, it is believed to stop short of the $600 benchmark set last time.
Amid projections from global ratings giant S&P that WA's underlying financial position will be almost $8 billion in surplus this financial year, there have been widespread calls for the government to use its budget to provide relief.
Cost of living a 'major' focus of budget: Premier
Fronting the media this week, Mr McGowan indicated he had heard the calls.
"Obviously, we have managed the finances in a way that has delivered surpluses and will continue to deliver surpluses, the only government in Australia doing so," Mr McGowan said.
"We'll hand it down when it's due but cost of living is obviously one of our major focuses."
The Premier's office has been contacted for comment.
Shadow treasurer Steve Thomas said he was unsurprised by the government's decision, arguing he would have been "shocked" if no such relief had been provided.
Mr Thomas said the credits would be welcomed by households, many of which were struggling as cost of living pressures began to bite, driven by the fastest inflation rate in more than 20 years.
"I welcome this as a good first step and hopefully the budget will contain other measures that minimise the impact of cost increases."
Both support and reform needed in budget: Opposition
Despite backing the relief, Mr Thomas said he would be watching the budget closely to see whether the government had any plans to use its record surplus to reform the economy.
He said that although households were feeling the effects of rising costs, businesses were exposed as well and the government should cut payroll tax to reduce the burden.
According to Mr Thomas, the government should also use its windfall surplus to pay down debt, which sits at more than $30 billion.
"If he doesn't engage in other support for households and economic reform and debt reduction, then I think it's another failure and another lost opportunity for the state," he said.
"I'll be very disappointed if it's not part of a broader suite of both support and reform."
In March, S&P said WA was headed for a record operating surplus of $7.9 billion as revenues flooded in from surging iron ore exports to China, GST receipts from the Commonwealth and tax collections from the state's buoyant housing market.
Martin Foo, an analyst from the agency, noted WA had resorted to the "very peculiar" tactic of trying to downplay the size of its surplus, which the government is tipped to book at a lower number for the 12 months to June 30.
