- Cook Government continues to prioritise what matters in the 2025-26 Budget
- Investment will focus on cost-of-living relief, boosting housing supply, and investing in health and education
- Sound financial management will enable the Cook Labor Government to deliver on election commitments
- Major investment in economic infrastructure to support future jobs growth
- Substantial additional funding to meet the demands for key services because of rapid population growth
- $2.5 billion operating surplus forecast in 2024-25, the seventh consecutive operating surplus handed down
- Operating surplus position maintained over the next four years
- Surplus supports funding for significant $38 billion infrastructure investment over the next four years
Despite rising global uncertainty, the 2025-26 State Budget will continue the Cook Labor Government's track record of strong financial management, supporting the delivery of election commitments for the people of Westen Australia.
The Budget's strong financial position will also support a significant increase in funding for key services to meet the demands of a rapidly growing population, which has grown by more than 300,000 over the past five years.
The 202526Budget shows the government is on track to deliver an operating surplus of $2.5billion in 202425, its seventh consecutive surplus. A $2.4 billion operating surplus is forecast for 2025-26, with operating surpluses forecast to continue over the forward estimates period.
More than $3 billion is allocated in the 2025-26 Budget to progress and deliver on the government's 2025 election commitments, with a strong focus on housing, health, education, cost of living and economic diversification.
Major investment in the 2025-26 State Budget includes:
- further cost-of-living relief of $963million, including residential battery rebates, a second round of the WAStudent Assistance Payment, the new one-zone flat fare and free student travel, plus a broad range of other initiatives;
- $1.4billion to increase housing supply, choice and affordability, including further stamp duty relief for first home buyers, 1,000 additional loans under Keystart's Shared Equity Scheme, additional investments in social and affordable housing and boosting the size of our construction workforce to build more homes;
- $1.4 billion in additional funding for health and mental health to meet the needs of our growing population, further initiatives to boost hospital and emergency department capacity, and improve access to high quality care across WA;
- additional funding for education and training of $1.8billion to meet higher student enrolments, investing in new schools and upgrades, and extending low and feefree TAFE settings making training accessible to all and meeting industry needs; and
- substantial investment to support economic diversification and decarbonisation to help deliver the Made in WAplan to produce more things in Western Australia and make the State a renewable energy powerhouse.
The Cook Labor Government continues its significant investment in economic and social infrastructure, with a record $13.7billion estimated spend in 2024-25, as major METRONET projects are completed, followed by a significant $12.1billion program in 2025-26.
More than $2.7 billion in additional investment into economic infrastructure will occur over the next four years including water, power, ports and Strategic Industrial Areas to unlock new and expand existing industries.
The infrastructure investment program totals $38billion over the next four years to set the State up for the future, with operating surpluses providing a significant source of the required funding, reducing the need to increase debt. This contrasts with other jurisdictions that are not only borrowing to fund infrastructure but also the day-to-day expenditures of government.
Despite the government's significant investments in this Budget, net debt is expected to be $33.6billion by 30June2025, slightly lower than anticipated in the Pre-election Financial Projections and still more than $10billion lower than projected when WALabor came to office.
At just 7.5 per cent of Gross State Product(GSP), the State's debt levels remain the most affordable level in the nation, with net debt to GSP forecast to remain well below 10 per cent of GSP by 30June2029. By contrast, jurisdictions such as New South Wales, Victoria, Queensland and South Australia all have net debt to GSP ratios growing to an average in excess of 20 per cent or more over the next four years.
Notably, Western Australia has gone from having the highest ratio of net debt as a percentage of GSP in the country at 13.8 per cent under the previous Liberal-National Government to having the lowest under WA Labor.
Western Australia remains the only state or territory in Australia with a tripleA credit rating from both S&PGlobal and Moody's Investors Service, and one of the few jurisdictions globally with such standing.
For more information, visit https://www.ourstatebudget.wa.gov.au
As stated by Treasurer Rita Saffioti:
"In this period of global uncertainty and geopolitical volatility, our government continues to responsibly manage the State's economy and finances.
"Importantly, we're investing in economic infrastructure and delivering on our plan to make more things in WA to ensure we continue to be the nation's economic powerhouse, building on the 340,000 jobs we've already created and supporting our businesses to grow.
"This Budget delivers on our election commitments and continues to prioritise what matters to Western Australians including cost of living, boosting housing, and investing in key services including health and education.
"The investments in this Budget will also help us meet the needs of our growing population, with the number of people living in Western Australia growing by more than 300,000 in the last five years.
"We've kept the Budget in surplus to ensure we can continue to respond to challenges ahead of us given rising global uncertainty and instability."
