Jessica Page: Mo money mo problems for Rita Saffioti as public transport cash splash comes at a price

Mo money mo problems is a conundrum not all west Australians are lucky enough to have, but Rita Saffioti certainly does. Because it’s put WA’s Budget squarely in the grips of lifestyle creep. The more money you make, the more you spend and the more money you need as luxuries become necessities. I’ve been trying to teach my children the value of a hard-earned dollar. No doubt my husband is bemused by the hypocrisy. But tongue firmly in cheek and with some old fashioned cash-in-hand we let our daughter loose at the local farmers market, where five dollars for an ice-cream left only a little spare for fresh fruit. No wonder fewer West Australians are eating enough fruit and veg, according to the latest health and wellbeing surveillance survey. She piled her basket high with apples, bananas, cucumbers and capsicum. (Plus, silverbeet that I don’t like and so don’t know how to cook). And she was stunned when there was no change left from her $20 budget. Not to fear, mum’s credit card was just a phone tap away. The one-off ice-cream has become a weekly expectation. Just like Government subsidies that are bankrolling WA’s standard of living to the envy of other states. Handouts that are now exceeding $4 billion this year have prompted a mild-mannered warning from the ratings agencies that have given WA’s economy under the Cook Government a big tick. But that AAA credit rating is not written in permanent ink. S&P Global Ratings’ Government Outlook for 2026 warned that the states have caught the “borrowing bug” and that operating balances could be “hobbled” by great expectations to ease a “perceived” cost-of-living crisis. “Community expectations of the role of government are ever expanding,” S&P Global Ratings analyst Martin Foo said. “We think some of these concessions could prove difficult to withdraw and constrain fiscal flexibility over time. “WA has the lowest debt of any state, a wealthy economy, and the post-2018 GST relativity ‘floor’ helps to limit downside risk. “But if iron ore prices fall substantially below this level, and at the same time infrastructure spending is elevated, then the ‘AAA’ rating might be at some risk.” The biggest spender is, no surprise, Metronet. The Public Transport Authority’s annual report last year revealed that the annual operating subsidy to keep Perth’s public transport network running has surged 14 per cent to almost $1.4 billion. Public transport is a necessity. But cheaper fare caps are a judgement call and a balancing act. Labor MP’s social media feeds have been full of new year content boasting about 2026 train and bus fares that are as cheap as the 1980s. What they’ve dubbed the Go Anywhere Fare reduces a single trip to $2.80 if you use a SmartRider. “This is about giving Western Australians more choice, more convenience, and incredible value, and represents real cost-of-living relief for tens of thousands of Western Australians,” Ms Saffioti, as both Treasurer and Transport Minister, has said. But it’s not free. Taxpayers are footing the bill. Shadow Treasurer Sandra Brewer said WA Labor is “fuelling” the cost-of-living crisis and “must confront the root causes” of power, water and housing prices. “Subsidies and concessions have a role to play, but they must be disciplined and targeted,” she said. She didn’t say what concessions she would cut. There’s a good case for subsidised public transport. The Treasurer’s right. It is real cost-of-living relief for the 80,000 people who travel two zones or more, to and from school or work, each weekday. That’s often families who can’t afford the luxury of two cars, or the luxury of time to drive kids to school, or a house within walking distance. And it has the added benefit of perhaps luring a few who can afford it off the congested freeway and onto the rail lines, now that they reach more suburbs. But the public transport cash splash that has been WA Labor’s election-winning hallmark could become a luxury this Government can’t afford, if the iron ore price falls or Ms Saffioti loses the fight over the GST. The pressure is on her to keep the good times rolling. Because, in politics and in life, you often don’t know what you’ve got until it’s gone.