The 2025-26 Government Mid-year Financial Projections Statement (or Mid-year Review) was released by the Treasurer today. The report provides the latest information on Western Australia's economic and fiscal outlook.
The Mid-year Review shows that Western Australia's domestic economy continues to perform strongly, with State Final Demand growing by 3% in the year to September 2025. Domestic economic growth has been underpinned by sustained high levels of business investment, stronger than expected household consumption, and the highest level of dwelling investment in seven years.
The positive economic outlook has flowed through to the State's finances and enabled the Government to invest further in frontline services. The Mid-year Review provides a boost to health and mental health services, new housing and homelessness initiatives, and additional funding for child protection and family and domestic violence services and cost of living support. A $3.8 billion boost to the Government's Asset Investment Program brings infrastructure spending to $41.8 billion over the four years to 2028-29.
A general government operating surplus of $2.5 billion is now forecast for 2025-26 (up from $2.4 billion at Budget), with surpluses projected in each of the outyears. Total public sector net debt is projected to be $35.7 billion at 30 June 2026, $3.3 billion lower than the 2025-26 Budget forecast. At just 7.6% of Gross State Product, this level of net debt remains the lowest in the nation.
