The WA State Budget for 2025-26 was handed down on 19th June 2025, with a number of investments announced across the state.
Thanks to the Regional Chambers of Commerce & Industry and Chamber of Commerce & Industry WA for preparing this overview for us.
View as a pdf: WA State Budget Summary
Or access the WA State Government's overview: Our State Budget 2025-26
Summary
o Seventh straight operating surplus of $2.5 billion in 2024-25, with $2.4 billion in 2025-26.
o $38 billion for the asset investment program over the next four years, with $10 billion in regional WA, over the forward estimates.
o More Royalties for Regions expenditure is becoming recurrent in nature. It is also interesting to note that funding decreases each year under the budget. With a $250 million decrease from 2025-26 to 2026-27. In 2028-29, the R4R spend will reduce to $828.5million. However, this year, there is an overspend of approximately $278million.
o Treasurer links economic infrastructure(access to power, water) and approvals being key to boosting productivity in WA. This is a key focus of this year’s budget. 4 Big pivot from transport infrastructure into economic infrastructure in this budget, and likely in future budgets.
o Strong and sustained business investment, expected to grow by 55% to 2028-29. 4 As a result, payroll tax revenue is expected to grow from $5.4 billion in 2023-24, to $6.2 billion in 2025-26, and a whopping $7.1 billion by 2028-29.
o Recognition of the enormous challenges facing housing availability in the regions. To this end, the Minister for Housing and Treasurer will undertake a town-by-town analysis of regional housing needs in WA.
o The GST fight for WA continues with the upcoming Productivity Review. Without the current arrangements, WA would have received just 18% of our percentage of population share. Despite the 2018 reforms, WA makes a net contribution of $39 billion, the largest of all States and Territories
Major Budget Spending Highlights
o $10.3 billion in regional infrastructure.
o $500 million boost to the Strategic Industries Fund, taking it to$1billion, which will be used to activate Strategic Industrial Areas across the State, including in the Pilbara, South West, Goldfields and Mid West. These will become home to several clean energy and major industrial projects incoming years.
o $543.3 million to expand the Goldfields and Agricultural Water Supply Scheme. $235.1 million expected to be spent in 2025-26, with $298.2m in2026-27 and the remainder in 2027-28.
o $542 million will be spent in 2025-26 for network upgrades and expansion, much of which is related to the second bundle of the CEL – North program, and for the reinforcement of the Regans Ford Terminal to enable additional renewable energy generation to connect to the grid. A further $564million allocated for next financial year as well.
o $400 million Housing Enabling Infrastructure Fund (HEIF) is key to supporting housing supply through enabling infrastructure in government-deemed growth areas. This will include $59.6 million for 18 water and wastewater projects across Perth and Peel, and four projects in regional locations, of Busselton, Dalyellup, Kununurra and Margaret River.
o $102.5 million to provide rebates on the cost of residential batteries to eligible customers across the State, including regional customers. However, subsidies for SMEs were a missed opportunity.
Jobs And Diversified Regional Communities
The Strategic Industrial Areas Fund will support developments at several key sites, including the South West Advanced Manufacturing and Technology Hub in Picton. This will become one of Western Power’s two poles and wires manufacturing facilities. In total, 25 million will support the manufacture of transmission towers and components.
Initial investments will also be made to support road upgrades at Kemerton SIA.
Key diversification initiatives:
o $30 million towards the Collie Industrial Transition Fund (allocated beyond the forward estimates) to further support the transition of Collie’s economy to new and emerging industries.
o $6 million to more than double the State’s contribution to the Wine Industry Export Growth Partnership.
o $8.3 million to progress options analysis on the future of the State’s freight rail infrastructure, with the intention of unlocking greater economic activity and supporting industry, farmers and regional communities.
o $2 million for a Space Launch Facility Study (2025-27).
To drive tourism opportunities, key initiatives include:
o $19 million boost to the Government’s Outdoor Adventure Package to drive tourism opportunities.
o halving the TransWA fare to 240 destinations across the State.
o $500,000 to develop a business case and project definition plan for the construction of cruise passenger facilities at the Port of Broome to promote tourism and economic growth.
o $25.2 million has also been allocated to establish a Regional Racing Fund for fund key infrastructure upgrades at up to 24 racing, harness, turf and trotting clubs.
Improvements to power and water infrastructure is a key focus in this Budget, key initiatives include:
o $102.5 million to provide rebates on the cost of residentialbatteries to eligible customers across the State, including regional customers.
o $13.5 over 2025-26 and 2026 million for Horizon Power to undertakenetwork connection works for a new 50 per cent renewable power station atLeonora.
o $5.3 million for the new Blackstone Hybrid Power Station(partially funded by $1 million in Commonwealth funding
o $4.5 million to finalise the replacement of a transformer at the Murdoch Drive Zone substation in the Pilbara to ensure reliable power supply.
o $41.4 million for three Western Power substation feeders at Muchea, Medina and Pinjarra.
Key port initiatives include:
o $35 million over 2025-26 to 2027-28 for the Pilbara Ports Authority to reconstruct the Utah Ring Road to support heavy traffic loads.
o $14 million over 2025-26 and 2026-27 for Kimberley Ports Authority to construct infrastructure at the Port of Wyndham to meet First Point of Entry requirements, (including new border services).
o $11 million over 2025-26 to 2027-28 for Southern Ports Authority to undertake early engineering design work and progress approvals for a new general purpose berth at the Port of Albany. A new berth will increase the port’s capacity to accommodate large vessels like cruise ships and address forecast trade growth; and
o $3.5 million over 2024-25 and 2025-26 for Mid West Ports Authority to progress detailed design of Berths 8 and 9 at the Port of Geraldton, which will help activate the Oakajee Strategic Area.
Regional businesses may also benefit from the Made in WA agenda, which is supporting local industry with a pipeline of work. There is a $50million local battery manufacturing program.
Safe And Strong Communities (Crime, Health, Education And Training)
Total uplift of $829 million into health across the state. Key issue is that the Commonwealth share of hospital spending continues to decline(sits around 37%, well below the 45% benchmark).
Key regional health infrastructure initiatives include:
o $20 million towards the redevelopment of Bunbury Hospital.
o $8.8 million to construct Derby Wellness Centre.
o $3 million for planning toward: construction of dialysis unit in Karratha; the modular ward for Albany Health Campus; and the construction of radiation oncology at Geraldton Health Campus.
o $1 million towards planning scope of work for Kalgoorlie Health Campus redevelopment.
For education and training initiatives include:
o $8 million for the Remote Schools Infrastructure Program to address infrastructure needs at eligible schools in the remote Kimberley region.
o $14.3 million to refurbish accommodation at the Western Australia Police Academy to attract and incentivise regional recruitment.
o $12 million to train new apprentices in the defence industry.
o $8.6 million to deliver Fee-Free TAFE – Housing and Construction courses, up skilling the local workforce to build regional houses.
o $5.9 million invested in the Adult Apprentice Incentive Scheme,AUKUS Incentive Scheme and Collie Job App.
$126.3 million to support new and existing program expansion to support skills and workforce growth, including:
o $25.2 million Group Training Organisation Wage Subsidy Program which will also include supports for mature apprentices($4.4 million in 2025-26).
o $3 million for early childhood education workforce attractioninitiatives grants ($750,000 in 2025-26); and
o $32.2 million for TAFE Modern Equipment program to enhancefacilities and infrastructure assets in the regions ($7.8 million in 2025-26).
Growing Our Communities (Housing, Transport, Infrastructure And Environment)
Housing initiatives are a key focus of this budget. In total, there is an additional $1.4 billion in new housing initiatives approved as part of the 2025-26 Budget, key initiatives include:
o $101 million investment into a new Housing Enabling Infrastructure Funding. Initially, Water Corp will spend $59.6 million over 2024-25 and2025-26 on water and wastewater infrastructure.
o $4 million over the forward estimates period to establish a Housing Approvals Unit within the Department to improve the timeliness of environmental and water approvals for significant greenfield and infill housing developments.
o $104 million, over 2026-27 to 2028-29, to double the Government Regional Officer Housing construction program, with the aim to deliver more than 100 additional dwellings.
o $25 million Regional Housing Support Fund to support construction, infrastructure and site preparation costs for new housing projects.
o $5 million to support the delivery of the Water Lily Place Affordable Housing Project, which will provide 14 affordable rental dwellings for key workers in Kununurra.
o $43 million to deliver 169 residential lots at Mulataga in Karratha.
o $20 million to support new units at Pringle Village in Kalgoorlie.
Key transport initiatives include:
o $200 million (including $40 million reallocated from existing programs) from 2025-26 to 2028-29, and a further $50 million in 2029-30, to expand the Regional Road Safety Program across local regional roads.
o 18.3 million Karratha to Tom Price Road – Manuwarra Red DogHighway
o $41 million for the Menang Drive-Chester Pass Road GradeSeparation.
o $36 million for the Oakajee Strategic Industrial Area Access Road Outback Way – Laverton to WA Border.
Concluding Remarks
o Evident pivot from transport to funding major economic infrastructure, including water and power. Decarbonisation will likely require further State Government investment, alongside industry, with the potential for financing and cost-recovery arrangements pursued over the life of the assets.
o Important recognition of housing challenges in regional WA, with doubling of investment in the GROH program and funding for headworks.
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