Cook Government power credit and hardship measures don’t go far enough

10th July 2023

The Cook Government’s electricity bill credit and extra hardship measure announced today could have gone further amid record surpluses, according to Shadow Treasurer Steve  Thomas.  

“While both measures will assist families struggling with massive cost of living rises over the  last year, they fall well short of the level of support the government can afford to provide  struggling Western Australian households,” Dr Thomas said.  

“The Government has just booked in another $4 billion surplus, giving it a total surplus of  $19 billion over the last five years and with forward estimates $30 billion in surpluses over a  decade. 

“This level of profit gives the Cook Government the scope to provide real and meaningful  cost-of-living relief. 

“Yet, since being elected in 2017, this government has increased fees and charges by  $1030, and they are forecast to increase by inflation (2.5 per cent) over the forward  estimates adding an additional $167 in 2024-25, $171 in 2025-26 and $175 in 2025-26. 

“This is a government that gives with one hand but takes with the other and given its current  surplus on the back of a GST windfall and resources boom, more can and should be done. 

“The Opposition has called for a $300 million funding boost to charities over the next two  years to support our most vulnerable as a start, but this has continually been ignored by this  government.”  

Dr Thomas said with respect to the additional hardship measure announced today, the 10 free units of electricity credits in off peak periods was helpful but represented a saving on  average of less than a dollar a day. 

“This is less than a cup-of-coffee a day saving for desperate people, and there is scope for  greater compassion,” Dr Thomas said. 

“It is especially modest given that as the Minister has stated the energy will come from off  peak rooftop solar generation, which is only costing the government 2.5 cents per kilowatt  hour to purchase from households between 9am and 3pm. 

“The cost to the government is really low. They are giving away 10 units of off-peak energy  that costs them 25 cents a day, although they will argue they are forgoing 82 cents a day in  income. 

“For the current 9,100 hardship clients the worst-case daily cost to a government that is  making billion dollar profits every year is currently $2,275 in electricity purchase costs and  $7,462 in foregone income. I hope that number grows dramatically in coming months. 

“This is a very modest start to a more meaningful support package, especially for those  whose mortgage costs have gone up over $1,000 a month over the last year.”

Ends.

Media contact: Dr Steve Thomas 0427 908 717