Breaking: Big-spending WA budget offers cost-of-living relief, $100 fuel handout

WA Treasurer Rita Saffioti says the 2026 budget focuses on housing, health and economic infrastructure. (ABC News: Cason Ho) The WA government has delivered a big-spending budget, focused on housing, health, economic infrastructure and cost of living relief. Every West Australian with a driver's licence will get a $100 handout to help with skyrocketing fuel costs, but the electricity subsidy will not be revived. Premier Roger Cook warned of economic headwinds ahead amid continuing global uncertainty. Link copiedShareShare articleWestern Australia is once again rolling in cash with today's big-spending state budget revealing another bumper surplus, with a focus on funding health, housing and infrastructure projects. But amid surging cost-of-living pressure, the budget offers some relief — including a $100 fuel payment for everyone with a valid driver's licence — as well as some cuts. While there may be rivers of cash flowing into the state's coffers, plenty of people are doing it tough. Housing, health care and cost-of-living relief are likely to feature prominently in Western Australia's budget as more people struggle. Cost of living measures in today's budget include: Household fees and charges, including power bills, have gone up 2.7 per cent or $160 per year. But those households who both use public transport and are eligible for the fuel support payment will be better off to the tune of $222 per year. The government has chosen not to revive its popular power bill rebate, which it axed last year. WA is still the engine room of the nation's economy, and today's $3.5 billion surplus for the current financial year is the eighth in a row. And next year is also looking rosy, although the surplus is projected to drop to $2.4 billion. To put that in perspective, only two other states are in the black: Victoria's surplus is $700 million and South Australia is forecasting $179 million. WA Premier Roger Cook and Treasurer Rita Saffioti have unveiled the 2026-27 state budget. (ABC News: Cason Ho) Net debt is slightly down, and is forecast to reach $34.5 billion this financial year, down from $39 billion last year. It's an eye-watering figure but Treasurer Rita Saffioti insists it's all relative, and compared to the size of the economy and other states, everything is under control. Nonetheless, the proportion of debt to income has risen from 6.7 per cent to 7.1 per cent, and there are storm clouds on the horizon, with creeping inflation and the effects of the Middle East war causing ongoing global uncertainty. Housing is perhaps Ms Saffioti's biggest headache, with the median house price in Perth now exceeding $1 million, prompting a suite of measures to boost supply help first homebuyers into the market. Ms Saffioti said the creation of more housing was a major focus of the budget, with $4.7b earmarked over the next four years. The budget includes $50 million to establish prefabrication facilities to boost housing supply. (ABC News: Keane Bourke) Rents across the state have climbed 74 per cent in five years to a whopping $747 (median) a week, according to Anglicare WA, prompting the government to offer relief. In addition to the already announced rental reforms, which will see the end of no-grounds evictions, there is an extra $1.5 billion over the next four years to build 1,591 new social and affordable homes. There's also one-off rent relief payments for people at risk of eviction. The budget contains bad news if you're a public servant — the government is planning to axe 1,500 jobs. The WA Budget 2026-27 budget forecasts a $2.4 billion surplus. (ABC News: Cason Ho) There will also be a five per cent cut in the government's budget for consultants, advertising and travel which is expected to save $50 million. Ms Saffioti wouldn't be drawn on exactly who would lose their jobs, telling journalists only that it would be "back room staff" and not "nurses, teachers and doctors". With Premier Roger Cook touting a cash splash of $9.1 billion over four years as "the biggest funding boost for health in WA's history", nurses and doctors can rest assured their skills are badly needed. WA Premier Roger Cook says the 2026 budget has been delivered during a period of global uncertainty. (ABC News: Cason Ho) The government had already announced an additional $1.5 billion for health infrastructure, some of which will go towards building new hospitals and maintaining old ones. But there is no money allocated for a hospital at Yanchep, where population pressures are growing and locals are crying out for a tertiary health campus. And the cost of the Bunbury Hospital redevelopment has blown out by $100 million. Amid rising geopolitical tensions globally, the government has acknowledged there could be tough times ahead for West Australians. Ms Saffioti said the Middle East conflict was "a definite risk in our budget" that had not been fully accounted for, since the final budget figures had been set i

Breaking: Big-spending WA budget offers cost-of-living relief, $100 fuel handout

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