Fuel bonus as WA posts eighth straight budget surplus
· Michael West
Motorists and families will bank cash handouts in Western Australia courtesy of another bumper state budget surplus.
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The state Labor government has announced a $2.4 billion surplus in its 2026/27 budget, its eighth straight set of books in the black.
Off the back of another bumper year for iron ore, it has also upgraded the current year’s surplus to $3.5 billion, allowing for a suite of new measures.
Among more than $1 billion in cost-of-living relief in Thursday’s budget were a new carers gold card, energy rebates, capped regional flight costs and free public transport initiatives.
The WA government has announced a $2.4 billion surplus in its 2026/27 budget. (Susie Dodds/AAP PHOTOS)While not the biggest line item in the budget, two payments are sure to be the most popular.
The state’s 2.1 million motorists will get a $100 “fuel support payment” to offset rising costs, while mums and dads will continue to receive $250 for every secondary school student and $150 for every primary and kindergarten student.
The money will be paid directly to bank accounts.
Ms Saffioti said the payments would help Western Australians “weather the economic storm”, including the fuel crisis.
“We will not be swept off course; this budget will support Western Australians in navigating our way through the changing and unpredictable swell,” she said.
The WA government has capitalised on an iron ore uplift to bank another budget surplus. (Richard Wainwright/AAP PHOTOS)WA’s rude fiscal health included net debt of $34.5 billion this financial year, the lowest per capita in the nation.
Victoria, by contrast, is $176 billion in the red, as revealed in its budget on Tuesday.
Much of that is down to the state’s biggest export: iron ore, which has enjoyed another bumper year in price and volume, sending excise flowing into WA’s coffers.
Total income in mining royalties hit $11 billion this year, also bolstered by higher average gold and lithium prices.
“You can always bank on resources in a time of crisis,” Chamber of Minerals and Energy WA chief executive Aaron Walker said.
“In a world of uncertainty, iron ore, gas and gold keep getting sold.”
The revised surplus is also down to conservative budgeting.
Responsible economic management has left room for cost-of-living relief, WA Premier Roger Cook says. (Richard Wainwright/AAP PHOTOS)The state last benchmarked the price of a tonne of the red dirt at US$97, but as the average price in 2025 soared to US$104.70, it has banked a windfall, offset slightly by the strong Aussie dollar.
WA is also a beneficiary of a 2018 shift by Scott Morrison’s coalition government, backed in by the Albanese government, to set a “GST floor”.
Under that deal, at least 75 cents in each dollar of GST revenue received by the federal government is returned to each state.
While many economists have criticised that decision and other states argue to revise the deal, WA champions it as integral to its success.
“Instead of criticism from the other states, a simple thank you would be nice,” Ms Saffioti said.
“We will double down in our fight to protect the 2018 agreement and ensure Western Australia is not punished for our economic success.”
Rita Saffioti says the budget will help WA residents navigate “changing and unpredictable swell”. (Richard Wainwright/AAP PHOTOS)The Chamber of Commerce and Industry WA chief economist Daniel Kiely called it a “building block budget that sets a strong foundation for future growth”.
However, the chamber was disappointed by a lack of “meaningful reform”, including payroll tax concessions.
The cash handouts were the day’s biggest surprise – much of the budget spend had been laid out in previous weeks, as has become customary for cashed-up governments bearing gifts.
That included billion-dollar spend-ups in health infrastructure and housing, investment in clean energy projects and public transport.
WA BUDGET 2026/27 AT A GLANCE
* Surplus: $2.4b – down from $3.5b in 2025/26
* Revenue: $55b – up 4.4 per cent from $52.6b
* Expenditure: $52.5b – up 6.9 per cent from $49.1b
* Net debt: $40.2b – up 16.8 per cent from $34.5b
* Interest repayments: $1.5b – up 19.2 per cent from $1.3b
* Iron ore price (2025/26): $US104.7 / tonne
* Unemployment: 4.0 per cent now – 4.25 per cent in 2026/27
* Economic growth: now – 3.25 per cent, next year – 2.25 per cent