Treasurer Rita Saffioti has delivered the 2026–27 Western Australian State Budget, forecasting a further $2.4 billion operating surplus and marking WA’s eighth consecutive surplus—reinforcing its position as the nation’s strongest-performing state fiscally.

With a continued budget surplus and significant investment across housing, health, infrastructure, and cost-of-living support, this year’s Budget strikes a careful balance between immediate relief and long-term economic growth.

Below is a breakdown of the key themes and what they may mean for Western Australians.

A Strong Fiscal Position Underpins Investment

The Budget confirms there are no new or increased tax measures across payroll tax, land tax, or mining and energy royalties, with existing thresholds and exemptions remaining unchanged—effectively maintaining the current settings for these key revenue streams.

This sustained financial strength is enabling the Government to fund a record $44.3 billion infrastructure program over the next four years, without significantly increasing debt.

From a broader economic perspective, this reflects continued resilience driven by strong mining revenues, population growth, and solid employment levels.

Housing: A Clear Priority

Housing continues to be the centrepiece of the 2026–27 Budget, reflecting ongoing pressure on affordability and supply across the State.

The Government has committed $4.7 billion in additional funding to boost housing supply, unlock land, and accelerate development.

Key measures include:

• Investment in infrastructure to enable new housing developments
• Increased supply of social and affordable housing
• Expanded stamp duty concessions for first home buyers, increasing eligibility thresholds.

The stamp duty exemption threshold for first home buyers has been increased by $100,000 to $600,000, with the concessional threshold similarly rising to $800,000. This marks the largest single uplift in first home buyer duty thresholds and is expected to benefit more than 25,000 eligible purchasers.

For vacant land, stamp duty has been removed on purchases valued up to $450,000, with concessional rates applying to land valued up to $550,000, aimed at stimulating new housing construction.

Additionally, the eligibility cap for the $10,000 First Home Owner Grant has been raised from $750,000 to $800,000, broadening access to the scheme in response to elevated property prices.

Foreign Buyer Duty Exemption
A new exemption has been introduced to encourage housing supply, allowing foreign buyers to access duty relief from 7 May 2026 where land is developed and sold within two years—broadening access beyond large-scale projects.

No change to business asset transfer duty

Despite Western Australia remaining one of only two Australian jurisdictions to retain business asset transfer duty, the Budget stopped short of addressing the issue. With an eighth successive surplus, the Government had an opportunity to remove a longstanding barrier to business transactions and succession planning.

Payroll Tax – No Relief for Businesses
No changes to payroll tax were announced in the Budget, leaving existing settings unchanged. As a result, businesses—particularly SMEs—continue to face an outdated system, with no new relief to offset rising operational costs.

These initiatives aim to ease pressure in the property market, although supply challenges and construction constraints are likely to remain key factors in the near term.

Cost-of-Living Relief: Targeted Support

With many households continuing to feel financial pressure, the Budget delivers more than $1 billion in cost-of-living support.

Measures include:

• A $100 fuel support payment for all WA driver’s licence holders
• Continued Student Assistance Payments (up to $250 per child)
• Ongoing free public transport for students and free Sunday travel

While these measures provide targeted relief, increases in household fees and charges mean the overall impact will vary depending on individual circumstances.

The approach reflects a broader policy shift towards targeted assistance rather than broad-based subsidies.

Significant Investment in Health and Education

The Budget includes major funding boosts to essential services, particularly in health and education.

A $9.1 billion investment in health and mental health will support:

• Expansion of hospital capacity
• Additional frontline staff
• Improved access to services across the State

In addition, $1.9 billion has been allocated to education and training, including continued support for skills development and workforce readiness.

These investments are aimed at supporting population growth while strengthening long-term productivity.

Infrastructure and Economic Diversification

Infrastructure spending remains a defining feature of the WA economy, with $13.2 billion to be invested in 2026–27 alone as part of the broader pipeline.

The Government continues to prioritise:

• Transport and connectivity projects
• Housing-enabling infrastructure
• Investment in emerging industries and decarbonisation

These initiatives are designed to support job creation, diversify the economy, and reduce reliance on commodity cycles over time.

What This Means for Businesses and the WA Economy

For businesses, the Budget presents a mix of opportunities and considerations:

Opportunities

• Increased infrastructure spending may drive demand across construction, engineering, and professional services
• Housing investment creates flow-on opportunities in property, development, and supply chains
• Workforce and training initiatives support talent development

Considerations

• Limited direct relief measures for businesses in the short term
• Ongoing cost pressures, including wages and operating costs
• Continued economic sensitivity to global commodity markets

Overall, the Budget signals stability and continued public investment rather than major structural reform.

Final Thoughts

The WA State Budget 2026–27 reflects a Government leveraging its strong financial position to deliver targeted relief and invest in long-term growth.

The clear priorities—housing, cost-of-living support, health services, and infrastructure—highlight the challenges currently facing Western Australia, while also positioning the State for future economic resilience.

As always, the real impact of the Budget will become clearer over time, particularly as global economic conditions evolve and implementation of key initiatives progresses.