Western Australia 2026-27 budget: $100 fuel credit, housing, health spending
Consensus Summary
Western Australia’s 2026-27 budget, delivered on May 7, 2026, by Premier Roger Cook and Treasurer Rita Saffioti, highlights a $3.5bn surplus for 2025-26 and a projected $2.4bn surplus for 2026-27, with net debt forecast at $34.5bn. Key measures include a $100 fuel credit for all driver’s licence holders starting July 1, funded by $198m in support payments, and targeted cost-of-living relief for families, such as $150 per primary school child and $250 per high school child. Housing remains a priority, with $4.7bn allocated over four years, including $2bn for 34,000 new homes, expanded first-home buyer concessions, and 1,591 new social and affordable homes. Health receives a record $9bn over four years, focusing on new hospitals and a Perth cancer facility. Despite economic strength, the opposition criticizes the budget for failing to address housing affordability and rising living costs, while the government defends its measures as responsible and future-focused. Global uncertainties, including the Middle East conflict, are noted as potential risks to the state’s economic outlook.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- WA Premier Roger Cook and Treasurer Rita Saffioti delivered the 2026-27 budget on May 7, 2026, with a $3.5bn surplus for 2025-26 and a projected $2.4bn surplus for 2026-27.
- Every WA driver’s licence holder will receive a $100 fuel credit from July 1, 2026, as part of $198m in fuel support payments.
- The state government allocated $4.7bn over four years to housing, including $1bn for land development and infrastructure, and $2bn (shared with federal government) to build 34,000 new homes, including 11,000 for first-home buyers near metro stations.
- First-home buyer stamp duty concessions increased: no duty on homes up to $600,000 (up from $500,000) and vacant land up to $450,000, with the First Home Owner Grant property cap rising to $800,000 (from $750,000).
- The government committed $1.5bn over four years to build 1,591 new social and affordable homes, including 1,426 through the Housing Australia Future Fund partnership.
- WA’s net debt is forecast to reach $34.5bn by June 30, 2026, down from $39bn in 2025, with debt-to-income ratio rising from 6.7% to 7.1%.
- The budget includes $9bn in health funding over four years, with $5.5bn for new hospitals, beds, and a Perth-based cancer facility.
- The government will axe 1,500 public sector jobs, primarily from back-office roles, to reinvest in priority areas.
- Families with schoolchildren will receive $150 per kindergarten/primary child and $250 per high school child, totaling $90m in student assistance payments.
- Free public transport initiatives include free school travel, Sunday services, and off-peak/weekend discounts for seniors, funded by $70m.
- WA recorded an 86% contribution from the private sector to domestic economic growth, with a 27% rise over the past five years.
Points of Difference
Details reported by only one source:
- WA’s private sector drove 86% of domestic economic growth, rising 27% over the past five years, with Premier Cook stating WA remains the strongest economy in the nation.
- The government estimates cost-of-living initiatives will provide over $2,000 in assistance for families with two children.
- Regional housing initiatives in Bunbury, Kalgoorlie, Karratha, Port Headland, Broome, Geraldton, and Albany will receive $692m for 500 new homes over four years.
- There are currently fewer than 320 homes for sale in Perth under $600,000 and 52 blocks of vacant land under $450,000.
- The government will invest $452m in 165 new social homes, refurbishment of 215 homes, and land acquisition for future social housing.
- Opposition Leader Basil Zempilas criticized the $100 fuel credit as insufficient, stating it does not address housing or cost-of-living pressures, and called the budget a 'smoke screen'.
- The state government recorded a $9.3bn GST revenue boost for next year, contributing to the $3.5bn surplus.
- WA boasts the 'most affordable debt in the nation,' with debt forecast $4bn lower than previously expected.
- Treasurer Saffioti acknowledged global uncertainty, including the Middle East war, as a 'definite risk' not fully accounted for in the budget.
- Rents in WA climbed 74% in five years to a median of $747 per week, according to Anglicare WA.
- The Bunbury Hospital redevelopment cost blew out by $100m, and no funding was allocated for a new hospital at Yanchep despite local demand.
- The government cut its budget for consultants, advertising, and travel by 5%, saving $50m.
- WA’s resources sector royalties are estimated to rise to $10.8bn in 2025-26, funding cost-of-living measures.
- Premier Cook emphasized diversifying the economy, including becoming a 'renewable energy powerhouse' and increasing local manufacturing.
- Household fees and charges, including power bills, rose 2.7% ($160/year), but eligible households with fuel support and public transport use gain $222/year net relief.
- Only two other states (Victoria with $700m surplus, South Australia with $179m) are forecasting surpluses alongside WA.
Contradictions
Conflicting information between sources:
- NEWSCOMAU states WA’s debt will be $4bn lower than forecast, reaching $34.5bn by June 30, 2026, while ABC does not mention a revised forecast figure but confirms debt will reach $34.5bn.
- NEWSCOMAU claims the state’s private sector contributed 86% to economic growth, rising 27% over five years, but ABC does not reference this specific statistic.
- NEWSCOMAU reports Opposition Leader Basil Zempilas criticized the budget as a 'smoke screen,' while ABC does not quote Zempilas directly but notes widespread cost-of-living pressures.
- NEWSCOMAU states the government will invest $4.7bn in housing over four years, while ABC specifies $4.7bn but adds $50m for prefabrication facilities, a detail not mentioned in NEWSCOMAU.
Source Articles
Every driver in Aussie state to get $100
An Australian state has delivered a budget with $1bn in cost of living relief – including a payout for every driver.
Breaking: Big-spending WA budget offers cost-of-living relief, $100 fuel handout
The WA government delivers a big-spending budget, focused on housing, health and cost of living relief including a $100 fuel handout, as a $2.4 billion surplus is unveiled. Here's what you need to know.