Fuel bonus as WA posts eighth straight budget surplus
Drivers and families will bank their cash handouts in Western Australia, courtesy of another state budget surplus.
The state Labor government has announced a $2.4 billion surplus in its 2026/27 budget; this was the eighth consecutive set of black books.
After another bumper year for iron ore, the company also increased the current year’s surplus to 3.5 billion dollars, allowing a series of new measures to be taken.
More than $1 billion in cost-of-living reductions in Thursday’s budget included a new gold card for caregivers, energy rebates, limited regional flight costs and free public transport initiatives.
While it may not be the largest item in the budget, it is sure to be the most popular of the two payments.
The state’s 2.1 million drivers will receive a $100 “fuel subsidy payment” to offset increased costs, while moms and dads will continue to receive $250 for each middle school student and $150 for each elementary and kindergarten student.
The money will be paid directly into bank accounts.
Ms Saffioti said the payments would help Western Australians “weather the economic storm”, including the fuel crisis.
“We will stay the course; this budget will support West Australians to navigate the changing and unpredictable upturn,” he said.
WA’s poor fiscal health included a net debt of $34.5 billion this financial year, the lowest per capita in the country.
In comparison, Victoria’s budget is worth $176 billion, as announced on Tuesday.
Much of this is due to the state’s biggest export: iron ore, which has once again had a bumper year in terms of price and volume, causing excise duty to flow into WA’s coffers.
Total revenue from mining royalties reached $11 billion this year, driven by higher average gold and lithium prices.
“In times of crisis you can always rely on resources,” said Aaron Walker, president of the Minerals and Energy Chamber WA.
“In a world dominated by uncertainty, iron ore, gas and gold continue to be sold.”
The revised surplus also results from prudent budgeting.
The state last set the price of a tonne of red soil at US$97, but saw an unexpected decline as the average price in 2025 rose to US$104.70, offset slightly by the strong Australian dollar.
WA also benefits from a 2018 change by Scott Morrison’s coalition government, backed by the Albanian government, to set a “GST floor”.
Under this agreement, at least 75 cents of every dollar of GST revenue received by the federal government is returned to each state.
While many economists have criticized this decision and other states have advocated revising the agreement, WA argues it was integral to its success.
“Instead of criticism from other states, a simple thank you would have been better,” Ms. Saffioti said.
“We will redouble our fight to protect the 2018 agreement and ensure Western Australia is not penalized for our economic success.”
Chamber of Commerce and Industry WA chief economist Daniel Kiely described it as a “building block budget that lays a strong foundation for future growth”.
But the chamber was disappointed by the lack of “meaningful reform,” including payroll tax cuts.
Cash aid was the biggest surprise of the day; Most of the budget expenditure had been made in the previous weeks, as is customary for cashed-up governments to distribute gifts.
This included multibillion-dollar spending on healthcare infrastructure and housing, as well as investments in clean energy projects and public transportation.
2026/27 WA BUDGET AT A GLANCE
* Surplus: $2.4bn down from $3.5bn in 2025/26
* Revenue: $55 billion, up 4.4 percent from $52.6 billion
* Spending: $52.5 billion, up 6.9 percent from $49.1 billion
* Net debt: $40.2 billion, an increase of 16.8 percent from $34.5 billion
* Interest repayments: $1.5 billion, an increase of 19.2 percent from $1.3 billion
* Iron ore price (2025/26): 104.7 USD / tonne
* Unemployment: 4.0 percent currently – 4.25 percent in 2026/27
* Economic growth: now – 3.25 percent, next year – 2.25 percent
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