The 2026-27 State Budget has been framed against the backdrop of heightened global uncertainty stemming from the Middle East conflict. Despite global headwinds, the economic fundamentals of the State are strong, with the domestic economy expected to grow by 3.5% in 2025-26, driven primarily by private demand, and employment has reached record levels.
The State’s finances also remain strong with an eighth consecutive operating surplus of $3.5 billion expected in 2025-26, an operating surplus of $2.4 billion forecast for 2026-27, and further surpluses expected in each outyear. These surpluses are an important non-debt source of funding for the Government’s $44.3 billion infrastructure program over the next four years and will assist in keeping Western Australia’s net debt the most affordable in the country.
Key new initiatives in the Budget include: further investment of $9.1 billion on health and mental health; $4.7 billion additional investment to boost housing supply and affordability; over $1 billion in cost of living relief; an additional $1.9 billion for education and training; and a range of measures to diversify and decarbonise the economy.
The Budget Papers are available on the Our State Budget website.
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