Significant Issues and Future Outlook
WATC must remain flexible and adaptable to respond to the ever‑changing economic environment to deliver the financial requirements of the State and our clients.
Western Australia’s Economic Environment
Western Australian real gross state product expanded an estimated 2.5% in 2017/18, according to Department of Treasury budget estimates, with rising exports the major driver of growth. Western Australia remains an export powerhouse and was the source of over 40% of the value of Australia’s merchandise goods exports in 2017/18.
Real gross state product growth is forecast to accelerate to 3.25% in 2018/19, with further increases in export volumes again expected to play a leading role. Rising household consumption and recovering dwelling investment are also expected to make positive contributions to growth in 2018/19.
Budget for 2018/19
|Interest on Investments||61,250|
|Interest from Authorities||1,640,287|
|Interest on Borrowings||1,646,204|
|Borrowing Related Expenses||4,413|
|Profit before Income Tax Equivalent||34,073|
|Income Tax Equivalent Expense||10,222|
|Profit for the Period||23,851|
Estimated Borrowing Program for 2018/19
The sourcing of WATC’s funding is subject to conditions in the various markets and the market mix during the year may be amended as necessary to meet WATC’s pricing, liquidity, lending and capital usage targets.
|Term Funding Requirement|
|New Lending to Clients||2.7|
|Total Term Funding Requirement||8.0|
Borrowing Strategy for 2018/19
In order to meet the State’s funding and debt management requirements for 2018/19, WATC plans to:
In addition, WATC will continue to:
- maintaining sufficient volumes on issue to retain benchmark bond status
- supporting these securities in the market
- issuing through our Fixed Interest Market Making Panel, by tender, private placement or syndication