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Every West Australian driver will receive a $100 “fuel support payment” as part of more than $1 billion in cost-of-living supports in the 2026-27 state budget.
Treasurer Rita Saffioti’s third budget was filled with big spending in areas like housing, hospitals and education, as well as cost-of-living sweeteners to address high inflation that is crippling household budgets.
It also includes the first voluntary public sector redundancies since the McGowan government’s first budget in 2017-18.
After weeks of promising more “targeted cost of living support” in the absence of the $400 electricity bill rebate, Saffioti surprised with more broad-scale cost-of-living payments, including the $100 fuel support payment available to all of WA’s 2.1 million drivers licence-holders, and a third round of the student assistance payment for parents of high school and primary school students.
Nearly $210 million has been budgeted for the fuel support payment, which will be available through the Service WA app from July 1 to every license holder, even if they don’t drive a vehicle or drive an EV.
The money can be spent on anything and Saffioti said it was a direct response to the war in Iran and wasn’t contemplated when the budget process started in January.
“What we’ve seen in relation to the cost of living is a price spike as a result of the Iran war,” she said.
“I think we need to give confidence to the Western Australian community, and I think we need to support the Western Australian community and that’s my focus.
“You have to make sure small businesses still have people coming through there door with confidence in their future and I’m very, very passionate about that. This is the time to give West Australian people confidence.”
That fuel payment has helped reduce the average fees and charges paid by WA households from $6672 in 2025-26 to $6450 in 2026-27.
About $90 million was budgeted for the third round of the student assistance payment of $150 for every primary school aged child and $250 for every high school aged child which will be available from the start of term 3.
While the state posted its eighth straight operating surplus of $3.5 billion this year and an expected $2.4 billion next year net debt will creep past $40 billion thanks to huge infrastructure spending contributing to a cash deficit of $5.1 billion.
Revenue has grown by more than $3 billion to $55 billion thanks to continued strength in the iron ore price which delivered another $616 million to the state’s coffers this financial year and a further $1.14 billion next year.
Stamp duty has also delivered another $862 million to this year’s budget.
In addition to the broad-scale cost of living measures the state has more targeted measures like a new foster parent and Grand Carers Gold concession card, which will include $377 worth of power bill relief for holders.
Foster parents will also benefit from $23.7 million to increase carer subsidy rates by 10 per cent and $6.1 million will be spent on continuing the grand carers’ cost-of-living payment.
Saffioti continued to spruik $51.6 million for continued subsidisation of public transport, including flat $2.80 fares and free travel on Sundays.
“You can always do more and there are always people that want more, but I think we’ve stuck the right balance of supporting families and investing in key areas that matter,” she said.
The budget papers have revised the Perth inflation index upwards from 3.25 per cent to 3.75 per cent.
With an infrastructure program set to hit a record $13.2 billion in 2026-27, coupled with the cash payments to the public, Saffioti rejected criticism her government’s big spending was fanning inflation in WA.
She said private investment made up about 86 per cent of economic growth in the state.
“I don’t accept that … more than any other state it’s the private sector contributing to the state economic activity. The role of government, government spending as a percentage of gross state product is the smallest of any state,” she said.
She also took aim at the Reserve Bank for increasing the interest rate this week.
She said companies and industry groups that came to her said they wanted the state to continue its spending on major infrastructure.
“They’re asking for more infrastructure spending, they’re asking for the roads, they’re asking for the port upgrades, they’re asking for the electricity infrastructure, they’re asking for the water,” she said.
GST also remains a major contributor to the state’s financial wealth, with $9.3 billion expected this year, with Saffioti pointing out it would have been $2.7 billion under the pre-2018 system.
Despite the splash on cash payments, Saffioti was confident her argument – that WA needed the deal to remain in place to help build economic infrastructure that benefited the entire nation – was still cutting it with the Commonwealth.
WA’s net contribution to the GST pool is still more than $2 billion more than it receives back and when asked what other state should say when they saw her set of numbers she said: “I hope they say thank you because we’re giving them $2 billion of this budget.”
For the first time in a long time, the WA budget has also highlighted cost savings measures, including through a 1500-person voluntary redundancy program which was expected to save the state $445 million over the next four years.
Saffioti said this program was requested by directors general and would not be available to frontline government workers such as doctors, nurses or teachers.
“Back-of-office staff, people delivering strategies and documents basically, that’s where the focus will be,” she said.
The state will also seek to save $50 million by reducing spending on consultants, advertising, travel and other “back office” things.
Hamish Hastie is WAtoday’s state political reporter and the winner of five WA Media Awards, including the 2023 Beck Prize for best political journalism.Connect via X or email.From our partners
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