The annual report of the state’s finances has revealed a $4.2 billion operating surplus - $684 million higher than forecast in the 2026/27 budget.
But some areas of government spending, including an increase in salaries expenses of $656 million, were considerably higher than budgeted.
While net debt sits at $33.4 billion - $1.1 billion lower than the budget predicted – it’s still $3.2 billion more compared to the equivalent level at FY 2025.
“This reflects the funding requirements of the state’s asset investment program ($12.3 billion) which continues at very high levels of investment,” the annual report said.
Government revenue was higher than expected, with most of the $1.8 billion increase coming from a record 47.4 per cent spike in property stamp duty.
Vehicle licensing, payroll tax, gambling taxes and other levies and taxes raised more than $200 million extra.
“The Cook Labor government is proud to have delivered Western Australia’s eighth consecutive operating surplus last financial year, through our continued focus on disciplined financial management,” Treasurer Rita Saffioti said.
“Since coming to government, WA Labor has halved net debt relative to the size of our economy, and Western Australia now has the lowest debt levels in the nation.”
GST grants were $61 million higher than expected at $315 million.
“We’re using our strong financial position to support Western Australian families, including delivering record investments in our health system and hospitals, housing and cost-of-living relief, as well as the infrastructure our growing communities need for the future,” the treasurer said.
“We’re also delivering massive investments in economic infrastructure to grow our nation-leading industries and generate local jobs so our State can continue to power the national economy.”
Before the annual report was released, shadow treasurer Sandra Brewer blamed Labor spending, including that of the WA government, for the latest interest rate increase announced on Tuesday.
“Michele Bullock exclaimed ‘productivity is doing nothing’ in her press conference,” Ms Brewer said.
“WA, is unfortunately, the prime culprit.
“It’s abundantly clear that the bulk of our inflation is made in WA, not driven by foreign conflicts.”
