Millions to get new $400 one-time cash bonus

WA residents will receive a $400 cash payment to help with their energy bills. (Source: Getty)

Residents of Western Australia will receive a $400 cash splash to help ease the rising cost of living.

The payment, announced in today’s WA state Budget, will be in the form of a credit towards residents’ power bills.

The cash splash is expected to cost the WA government around $450 million and will be paid for through the state's massive $7 billion surplus.

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“Every other state in Australia is in deficit and racking up big debt bills,” WA Premier Mark McGowan said.

“We’re doing the opposite ... and that gives room to do more in terms of cost of living.

“Cost of living will be a major focus of the Budget because we have managed the finances well over the last five years.”

This is not the first time the WA government has stepped in to help residents with their power bills, having handed out $600 payments in 2020.

Cost-of-living pressures

The cost of living has skyrocketed, showing the biggest growth since 2002.

The CPI rose 2.1 per cent in the March 2022 quarter and 5.1 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).

The most significant contributors to the rise in the March-quarter CPI were new property prices (+5.7 per cent), fuel (+11 per cent) and tertiary education (+6.3 per cent).

"Continued shortages of building supplies and labour, heightened freight costs and ongoing strong demand contributed to price rises for newly built dwellings,” ABS head of prices statistics Michelle Marquardt said when the data was released.

"The CPI's automotive fuel series reached a record level for the third consecutive quarter, with fuel price rises seen across all three months of the March quarter."

Additionally, the most recent NAB business survey found cost pressures for businesses had continued to climb after hitting record growth rates in March.

The survey revealed purchase costs for business jumped to 4.6 per cent - showing the cost of goods had continued to rise.

If businesses are struggling with the rising cost of living, that is sure to be reflected in the next inflation read next quarter.

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