Western Australian State Budget 2025-26: a forward-looking budget with strategic spending and no new taxes
Treasurer, The Hon Rita Saffioti MLA, has delivered the 2025-26 Western Australia State Budget, marking the ninth budget under the WA Labor Government.
While the budget does not introduce any new taxes, it continues Western Australia’s tradition of conservative financial management, delivering a forecast operating surplus of $2.4 billion.
The Government has opted for targeted cost-of-living relief and infrastructure investment over broad-based tax reform, with measures including stamp duty cuts for first home buyers, energy bill credits, and capped public transport fares.
Rather than reshaping the tax landscape, the budget focuses on economic resilience and social investment. Key allocations include $38 billion in infrastructure over the forward estimates, significant funding for health and housing, and continued support for education and training.
The budget also reinforces the state’s position as a national economic leader, with strategic investments in manufacturing, clean energy, and regional development.
For taxpayers, the absence of major tax changes offers short-term stability, but ongoing global volatility and intergovernmental fiscal tensions, particularly around GST distribution, suggest that the Government’s revenue strategy may evolve in future budgets.
BDO comment
BDO acknowledges the Government’s continued investment in health, education, and housing, while retaining a strong operating surplus. However, the budget offers limited direct support for small businesses, which continue to face cost and operational pressures.
While infrastructure and training investments, particularly in apprenticeships and advanced manufacturing, are welcome, the benefits are longer-term.
The absence of new relief measures for SMEs, unchanged payroll tax settings, and the removal of the $400 electricity rebate mean many small businesses will see little immediate impact. However, small businesses, especially those already under strain, would benefit from more direct assistance.
Small business owners should take this opportunity to assess how existing training and infrastructure programs may support their operations, while continuing to advocate for broader relief measures in future budgets.
To encourage further investment in the build-to-rent sector, the existing land tax concession for eligible build-to-rent developments will increase from 50 per cent to 75 per cent for the first three assessment years, before reverting to 50 per cent thereafter.
Additionally, the extension of the first homeowner duty rebate and increased fuel and accommodation subsidies for remote patients offer targeted support to individuals and regional communities.
Families will also benefit from a range of cost-of-living measures, including electricity bill credits, student assistance payments, and expanded access to public transport and recreational programs, offering modest but meaningful relief in the year ahead.
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