WA’s eighth consecutive budget surplus was delivered yesterday, raising concerns it doesn’t do enough to address the cost-of-living crisis.

Announced measures include a $100 one-time payment for drivers and support to foster parents and grandparents who look after children.

The budget also includes continuations of existing programs, such as assistance payments for families of schoolchildren and public transport concessions.

Bankwest Curtin Economics Centre senior researcher Dr Silvia Salazar says one-off payments like the $100 fuel relief can often have an effect opposite to what was intended.

Dr Salazar says the fuel crisis is an issue of supply, not demand.

“When the payment comes through, people will go out and buy fuel, which will only strain our supply further,” Dr Salazar says.

“It would be better to invest more in public transport, to get people off the roads and keep supply high,” she says.

Curtin Guild president Dylan Storer says the government needs to do more to ensure people have a roof over their heads.

Mr Storer says housing, cheaper education and grocery prices are among his top concerns.

“The cost of survival is far too expensive.”

Dylan Storer

He says welfare in the form of stimulus payments can help people get by as the cost of living continues to rise.

Curtin University senior economics lecturer Dr Ranjodh Singh says the measures could help people struggling with cost of living in the short term, but the decision may lead to increased inflation.

“It’s a real conundrum, because the RBA just lifted its rates, to curve inflation.” Dr Singh says.

“But there are people that really need help. I’m giving the state government the benefit of the doubt, but I think a targeted approach would have been better.”

Dr Ranjodh Singh

Dr Singh says targeted measures, like free or cheaper public transport for children and senior citizens, or specific support for pensioners, can deliver direct support to those who need it, without having a major impact on inflation.

Much like Dr Singh, Dr Salazar says measures need to be more specific in order to be effective on both an economic and person-to-person basis.

“It’s a balancing game. You introduce cost of living measures, inflation rises. You increase the interest rate, cost of living suffers. The only way past this is specific, targeted measures.”

Dr Silvia Salazar

Dr Salazar says the budget doesn’t go far enough in addressing the needs of the people, and blanket measures like the fuel relief don’t help.

Housing was another hot topic in the budget.

Included in the $4.7 billion housing investment was $297 million in support for first homebuyers and seniors looking to downsize.

The first home buyer grant, a $10,000 one-off payment to people buying or building their first home, had its cap increased from $750,000 to $800,000, costing the government $13.8 million.

A further $208 million was invested in stamp duty relief, with the threshold to total exemptions to the tax being widened.

Dr Singh says the increase in housing spend, from $1.4 billion to $4.7 billion, is a major jump, and will mostly be aimed at increasing housing supply.

“One of the critical gaps in state policy is addressing the housing crisis, so the increased investment is a good sign the government knows what the problem is, and is committed to solving it.”

Dr Ranjodh Singh

Dr Singh says a budget surplus, when the state makes more than it spends, isn’t inherently a good thing.

A surplus can come from lack of investment in key sectors such as infrastructure, and slow economic activity.

Despite this, Dr Singh says WA is in an “enviable position” economically, and the surplus means young people won’t be inheriting debt on a state level.

He says is it more important than ever that young people understand how state and federal economics work.

“Increased understanding leads to more informed voting decisions, which has a real impact on peoples’ wellbeing,” he says.

Dr Singh says he is confident the budget will help ease the pressures of cost-of-living, although the increase in inflation remains a cause for concern.