Western Australian State Budget 2026-27

On Thursday 07 May 2026, Deputy Premier and Treasurer the Hon. Rita Saffioti MLA, delivered the 2026-27 Western Australian Budget. This Budget is the third delivered by the Cook Government, and the tenth consecutive budget of the WA Labor Government.

The 2026-27 WA budget continues to focus on the Government’s priorities of housing, health, and jobs, with an emphasis on cost-of-living relief measures. It also reflects WA’s emphasis on strong and stable economic and financial management during a time of global economic uncertainty arising from escalating conflict in the Middle East. The treasurer’s statement emphasises WA’s current strong financial position as the only state with a triple-A credit rating and sustainable debt levels.

The budget contained a range of cost-of-living relief, including $100 fuel support payment for the approximately two million licenced drivers, which is included in the 3.3 per cent reduction in household bills. Families will also receive a third round of the WA Student Assistance payment, and access to free public transport initiatives and capped airfares for regional residents.

Beyond this, the budget also includes investment in housing and health. The $4.7 billion investment in housing is touted to deliver land supply and build homes more quickly to improve access for first homebuyers. This includes a $2 billion split with the Commonwealth to deliver 30,000 homes and $1.5 billion to build over 3,000 social and affordable rentals. In terms of healthcare, the budget includes further investment in frontline hospital services, initiatives to improve access to health services, and $1.5 billion in health infrastructure and the Building Hospitals Fund.

The budget also addressed business through investment in energy transition, which includes $2.6 billion in water and energy, and investment in decarbonisation. It also includes initiative to improve local manufacturing, expansion of the tourism and creative industries, and workforce development through Fee-Free TAFE. These measures are likely intended to continue the domestic economic growth of 2.5 per cent which has built on the 27 per sent growth which WA experienced over the last five years.

The Treasurer’s Budget speech is available here. 

The 2026-27 WA Budget is available in full here.

Budget Outlook

Economical and Financial

The WA budget has reported over 380,000 jobs created since 2017, while unemployment is at 4.25 per cent. State Final Demand has been revised up to 3.5 per cent in 2025-26, building on 27 per cent growth over the last five years. WA accounts for over 45 per cent of national exports, growing to $238.4 billion over the year to February.

This Budget reports an operating surplus of $3.5 billion in 2025-26 with net debt at 7.1 per cent of GSP in 2025-26, with a $2.4 billion surplus forecast for 2026-27. The State’s domestic economy expanded by 3.3% in 2025, driven primarily by private sector activity.

2026-27 WA Budget Commitments

Housing

In the budget there is an investment of $4.7 billion in housing, lifting additional investment since 2021 to over $10.8 billion. This includes:

  • $1.3 billion in land development including power, water and other enabling infrastructure
    • $686 million for DevelopmentWA to deliver new residential lots and activate METRONET station precincts
    • $522 million to deliver power and water infrastructure
    • $40 million top-up to the Infrastructure Development Fund
  • 5,000 social and affordable homes
    • $1 billion new investment under the Housing Australia Future Fund partnership between the State and Commonwealth Governments to deliver an additional 1,426 homes
    • $452 million to deliver a further 165 social housing dwellings, refurbish 215 houses, support land acquisitions, and undertake maintenance for WA’s 45,000 social homes
  • $297 million housing tax package to support first home buyers and help seniors to downsize
    • $208 million for a third round of stamp duty relief for first home buyers, including increasing exemption and concession thresholds for established properties and vacant land
    • $13.8 million to increase the first homeowner grant cap from $750,000 to $800,000
    • $73 million to extend the off-the-plan transfer duty concession for two years
  • Financing options for home buyers:
    • $375 million to build 500 affordable homes exclusively for first home buyers
    • An increase in Keystart property price limits from $800,000 to $860,000
  • Commonwealth and State support for the supply of affordable homes:
    • $250 million Pre-sale Guarantee
    • $250 million First Home Buyer Commercial Financing Facility
  • $51 million to boost training and workforce capacity to build more homes
    • $19.6 million for an additional 330 places under the GTO Wage Subsidy Program
    • $13.1 million to support an additional 1,100 places under the Construction Visa Subsidy Program and Build a Life in WA incentive
    • $18.7 million of the Fee-Free TAFE extension into 2027 will support the training of new construction workers
  • $48 million to two new Housing and Infrastructure Advanced Manufacturing Facilities in Kwinana and Neerabup
  • Regional housing investment includes an initial $419 million investment:
    • $170 million to deliver 170 new GROH houses, through the Resources Community Investment Initiative
    • Expansion of the GROH Investor Program to fund at least 200 additional GROH homes
    • $184.4 million for a revamped Shared Equity Home Ownership Subsidy Scheme
    • $64.9 million to acquire additional homes and maintenance for GROH, WA Country Health Service and Horizon Power staff.
    • $50 million boost to the Regional Housing Support Fund
    • $116 million investment to deliver 121 new lots at the Western Edge residential development in South Hedland, and 111 lots at the Broome North residential development

Cost of living

The budget includes over $1 billion in 2026-27 to deliver additional cost of living initiatives, including:

  • $198 million for the Fuel Support Payment
  • $89.5 million for the third round of the WA Student Assistance Payment
  • $13.5 million to the WA Rent Relief Program
  • $70.1 million for free public transport on Sundays, and for students travelling to and from school
  • Ongoing support for the Regional Airfare Zone Cap Scheme
  • $51.6 million for the Passenger Transport Subsidy Scheme
  • $27.1 million for free flu, FluMist and RSV vaccines
  • $33.1 million for the nationally coordinated fuel excise cut
  • $208 million in stamp duty relief for first home buyers
  • $51 million for 10 per cent increase to the Energy Assistance Payment, dependent child rebate, air conditioning allowance and to extend the Energy Ahead Program
  • $23.7 million to increase foster carer subsidy rates by 10 per cent
  • $14.5 million to establish the Foster and Grand Carer Gold Card
    • $337 of energy bill relief to carers
  • $6.1 million in support for grandcarers
  • $5.5 million to provide $300 KidSport vouchers
  • $124 million to lower fee and Fee-Free TAFE
  • Household fees and charges will reduce by 3.3 per cent
  • $4.4 billion to social concessions
    • Energy Assistance Payment
    • Dependent Child (Energy Bill) Rebate
    • Air Conditioning Allowance
    • Secondary Assistance Scheme Clothing Allowance
    • Rebates on local government rates and water charges
    • Vehicle Licence fee discounts
    • Free off-peak public transport for seniors and pensioners

Health

The budget includes $9.1 billion in health and mental health and a total of $12.1 billion on hospital services. This includes:

  • $5.5 billion to hospital infrastructure
    • $500 million to the Building Hospitals Fund to resource major hospital projects
    • $294 million to regional hospitals
    • $225 million to buy, commission and commence operations at Mount Lawley Hospital
    • $36.2 million to establish a Central Commissioning Office
    • $214 million for capital hospital maintenance
    • $143 million for medical and imaging equipment
  • $6.5 billion increase in frontline hospital services
  • $433 million to improve access to health services
    • Extending the State Health Operations Centre
    • Surge private bed capacity
    • Time to Think beds and transition care places
    • Supporting people experiencing homelessness with post-acute care through the Medical Respite Centre
    • Training 200 pharmacists
    • Expanding Hospital in the Home
    • Increasing FluMist access, and free flu and RSV vaccinations
  • $414 million to mental health, and alcohol and drug services
    • $43.8 million for community mental health and Alcohol and Other Drug services
    • $48.6 million to culturally appropriate social and emotional wellbeing support for Aboriginal people
    • $29.7 million to suicide prevention initiatives
      • $4.9 million for support for young people who have lost someone to suicide
    • $15.4 million for WA’s Crisis Recovery and Intervention Support Service
  • $492 million to regional health and mental health
    • $294 million to investments in regional hospitals
    • $16.2 million to the Broome Renal Hostel project
    • $68.6 million to regional palliative care, renal care support, cancer and other regional health services

Economy and Jobs

This Budget continues to invest in diversifying WA’s economy through investment in:

  • Jobs:
    • $1.4 billion boost to the Clean Energy Fund for Clean Energy Link projects
    • $973 million investment to expand Western Power’s network and increase electricity capacity for industrial and residential developments
    • $647 million for Westport, including Stage 1 Anketell Road upgrades
    • $91.7 million from the Strategic Industries Fund has been allocated to enable key projects at the Western Trade Coast, Kemerton and Boodarie Strategic Industrial Areas
      • $53.3 million for land assembly and road infrastructure planning at Latitude 32 and the Australian Marine Complex
      • $50 million investment in the Port of Port Hedland – funded by port users – to deliver the Channel Zone 5 Bypass
      • $4.8 million for a business case for investment in additional capacity at the Port of Bunbury
      • $1.4 million for a second round of the Small Business Growth Grants Program.
  • Made in WA:
    • $150 million in loans to manufacturers to improve energy efficiency and invest in advanced manufacturing equipment as part of the Made in WA Energy Affordability Investment Program
    • $48 million to build modular housing and apartments in advanced manufacturing facilities in Kwinana and Neerabup
    • $85 million to support development of the green iron and steel industry, including $75 million to support the NeoSmelt pilot project
  • Tourism and creative industries:
    • $500 million Major Projects Fund to partner with the Commonwealth and industry to progress major projects such as Scitech and the Aboriginal Cultural Centre
    • $24.6 million in preparation for the 2028 Kimberley Total Solar Eclipse
    • $24.9 million for Perth Zoo, including expanding the African Savannah
    • $18 million to support a range of Aboriginal tourism initiatives under the Jina: Western Australian Aboriginal Tourism Action Plan 2026-30
    • $10 million to attract business events to Western Australia
    • $40.4 million support for our local creative industries and arts organisations – including supporting the iconic FRINGE WORLD festival and backing cultural institutions like Black Swan Theatre, WA Ballet and WASO
      • $2 million to continue our support for WA’s games and interactive technology industry
  • Training and workforce:
    • $124 million to continue lower fee and Fee-Free TAFE in 2027
    • $24 million to expand Munster TAFE to provide state-of-the-art facilities to support the delivery of training for renewables industries, including wind energy, battery technology, and electrification
    • $19.6 million to support 330 additional Group Training Organisation Wage Subsidy Program places
    • $13.1 million to extend the Construction Visa Subsidy Program and Build a Life in WA incentive with an additional 1,100 places
    • $10.6 million for the Pilbara Development Commission to set up and operate the Clean Energy Training and Research Institute
    • $10 million to continue WorkSafe’s Mental Awareness Respect and Safety Program
  • Decarbonisation:
    • $150 million for the Vanadium Battery Energy Storage System near Kalgoorlie
    • $67.3 million in continued support for PoweringWA’s work facilitating the State’s energy transition
    • $30 million for a second round of the Investment Attraction Fund – New Energies Industries Funding Stream
    • $16 million for the Minerals Research Institute of WA
    • $5 million more in the Schools Clean Energy Technology Fund
    • $4.8 million to continue implementation of the Carbon Capture, Utilisation and Storage industry legislative framework

Environment

The WA Budget has new investment in water security and environmental protection, including:

  • Water security:
    • $606 million to secure water in the Pilbara through a joint venture with Rio Tinto to deliver Stages 1 and 2 of the Dampier Seawater Desalination Plant
    • $57.3 million for planning and investigations into Perth’s next desalination plant, with our $2.8 billion Alkimos Desalination Plant scheduled for completion in 2028
    • $52.9 million through its new Regional Water Source Fund in water source planning and investigation in regional WA
  • Protection and restoration:
    • $24.7 million to continue initiatives to ensure Western Australia’s biosecurity and animal disease preparedness
    • $4.5 million for the Tree Treatment Project
    • $8.5 million towards the Fisheries Support Package
    • $7.1 million to enhance protection of the Swan and Canning Rivers
    • $6.2 million investment in the Healthy Estuaries WA program

Safety and Community

This budget includes investment to build safe and inclusive communities for children, young people families, and the homeless. This includes:

  • $421 million for child protection services
  • $46.3 million for foster and grandparent carers
  • $29.5 million for the Home Stretch WA service
  • $20.3 million for at-risk youth services
    • $7.3 million for Home Safe
  • $6 million for the Binar Community Hub in Bellevue
  • $91.1 million for new and continuing homelessness services
  • $13.5 million to extend WA Rent Relief Program to June 2027
  • $106 million to family and domestic violence prevention and response
    • $45 million to FDV refuges and safe houses, including refuges in Albany, Bunbury, Narrogin, Newman, and Peel
    • $17.2 million for sexual abuse therapeutic, healing and support services
    • $10 million to trial out of hours social workers at hospitals and to continue Ngala’s Thriving Families service navigation program
    • $3.7 million for sexual assault support services and to expand counselling at the Sexual Assault Resource Centre
  • $61.4 million for the Target 120 early intervention program for young people
  • $41 million for Aboriginal-led youth programs under the Kimberley Juvenile Justice Strategy
  • $8.8 million for 15 additional Community Liaison Officers in the WA Police
  • $530 million for WA Police
  • $58.7 million for the Office of the Director of Public Prosecutions, Legal Aid and State Administrative Tribunal
  • $33.4 million for the management of community-based offenders
  • $87.7 million for new and upgraded prison infrastructure, including expansion of Acacia Prison
  • More than $300 million on justice and corrective services, including prison operations and initiative to manage prison population growth
  • $31.2 million for tire and emergency services fleet replacement

Education

The budget includes investment in schools, including disability support. This includes:

  • $233 million for school infrastructure
    • $78.2 million for upgrades at Champion Bay SHS, Belridge Secondary College, Byford PS, Glen Forrest PS, Cowaramup PS, and Geraldton SHS
    • $68.4 million for land acquisition and works on Alkimos North Senior High School
    • $86.9 million to the Cool the School and minor upgrades election commitments
  • $96.2 million for Harrisdale SHS, Piara Waters PS, Riva PS, and Inglewood PS
  • $219 million to maintenance of school infrastructure base
  • Over $100 million for minor upgrades and works at schools
  • $7.7 million for swimming and water safety education
  • $4.6 million in WA ClassmAIte® pilot
  • $815 thousand for the Your Move Schools program
  • $310 million for disability funding for public school
  • $15.7 million to the Disability and Inclusion Professional Learning Hub
  • $361 million to the Thriving Kids Initiative

First Nations

The budget includes more than $360 million in initiatives supporting Aboriginal Western Australians, including:

  • $127 million to the Remote Communities Fund
  • $26.6 million to Aboriginal-led economic development and cultural initiatives
    • Jina: Western Australian Aboriginal Tourism Action Plan 2026-30
    • Garaan-ngaddim Horizontal Falls tourism transition project
    • Gwoonwardu Mia Aboriginal Heritage and Cultural Centre in the Gascoyne
  • $48.6 million to mental health services for Aboriginal people
  • $37.7 million for the Aboriginal Representative Organisation function
  • $15.4 million for program delivery
    • Yiwarra Kuju – Martu Western Desert Justice program
    • Martu Student Hostel in Newman program
    • Kalgoorlie Transition Services
    • Aboriginal Pastoral Program in the Pilbara and Kimberely regions
  • $11.8 million to the Dandjoo Bidi-Ak program in the Perth Children’s Court
  • $10.1 million to deliver initiatives under Western Australia’s Closing the Gap 2026-28 Implementation Plan
  • $7.2 million to the Aboriginal Family-Led Decision Making initiative in Mirrabooka and the Mid West-Gascoyne region

Road Infrastructure

The Budget see significant investment in connecting people and goods safely and reliably across metropolitan, regional and remote Western Australia. This includes:

  • Road upgrades
    • $1.1 billion joint commitment by the State and Commonwealth Governments to upgrade Anketell Road between Leath and Abercrombie Roads
    • $83.2 million to deliver Stage 1 of the Great Northern Highway Fitzroy to Gogo flood resilience works
    • $113.5 million boost to Main Roads’ maintenance program
    • $61 million additional investment in the Toodyay Road upgrades
    • $127 million for a program of regional bridge replacements
    • $9.4 million to replace water drainage bridges in Busselton and Harvey
  • Road safety
    • $60.7 million for road safety awareness campaigns and school programs
    • $36.1 million to continue the Driving Access and Equity Program to help disadvantaged learner drivers get their licence
  • Accessible and affordable transport
    • $70 million to make public transport free for all passengers on Sundays, and for students travelling to and from school
    • $45 million to increase the frequency of Australind train services following commissioning of the new, expanded railcar fleet
    • $51.6 million uplift in the Passenger Transport Subsidy Scheme, to support people with a severe disability or medical condition with assistance
    • $14.2 million to continue and expand TransBroome public transport services, including two new buses
    • $11.1 million for the Regional Airfare Zone Cap Scheme

Regional Invesment

The Budget includes $4 billion investment in Royalties for Regions, and a $9.5 billion pipeline of regional years. This includes:

  • $419 million to support accommodation for essential workers in regional areas, including more than 500 GROH dwellings as part of the Seven Cities vision
  • A new Shared Equity Home Ownership Subsidy Scheme pilot for Government workers in regional WA
  • $116 million investment toward new residential developments in South Hedland and Broome
  • $659 million toward the Dampier Seawater Desalination Plant, including conveyancing infrastructure to connect the new plant to the West Pilbara Water Supply Scheme
  • $150 million for the Vanadium Battery Energy Storage System near Kalgoorlie
  • Over $125 million new investment towards the development of Boodarie and Kemerton Strategic Industrial Areas, Newman Light Industrial area, and regional port infrastructure
  • $294 million additional investment in regional hospitals and health infrastructure
  • $89.1 million further investment in the Transforming Bunbury’s Waterfront project
  • $24.6 million for essential infrastructure in and around Kununurra to support a successful 2028 Kimberley Total Solar Eclipse
  • $41 million to continue the Kimberley Juvenile Justice Strategy
  • $24.2 million for WA Police to continue Operation Regional Shield for a further two years
  • $6.5 million to continue the Kimberley Schools Project during the 2027 school year
  • $5.4 million for works on the piggery at the WA College of Agriculture in Cunderdin
  • $2.6 million to support delivery of the CinefestOZ Film Festival in regional Western Australia over the next four years

Women

This budget supports women in housing, prevention and responses to family and domestic violence, health and mental wellbeing, and skills development, through:

  • $19.6 million in the Group Training Organisation Wage Subsidy Program, which includes 50 places specifically for women in electrical trades
  • $18.1 million to a 15-bed refuge in Innaloo
  • $10 million for a three-year trial of out of hours social workers and continuation of Ngala Thriving Families service navigation program
  • $10 million for WorkSafe’s Mental Awareness Respect and Safety Program
  • $4.4 million for BreastScreen WA’s Joondalup clinic
  • $3.4 million for the Leave Safe, Stay Safe program at Bandyup Women’s Prison and Greenough Regional Prison
  • $1.4 million for perinatal mental health support
  • $10.7 million for the Safe Night Space for Women in Northbridge

Further Information

For more information, please contact Hawker Britton’s Partner Tim Grey-Smith on +61 432 226 323 or [email protected].

Additional Occasional Papers published by Hawker Britton are available here.

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