A national think tank has called for tax cuts, better urban planning and the privatisation of the state's rail network and electricity generation ahead of the state election next month.
The independent Institute of Public Affairs today released its "Reform Agenda for WA: A positive reform guide to the 2008 election" report.
The report is part of "Project Western Australia" which is aimed at stimulating policy discussion and development.
In the report, the IPA calls for a reduction in state taxes to encourage growth, reform in urban planning policies, restraint on the classification of land under the environmental act and the implementation of initiatives to reduce unnecessary spending.
It said the government has been living off economic prosperity caused by the mining boom without committing to the low tax rates and low regulatory burdens needed for independent long-term growth.
"Without broad based reform, Western Australia is vulnerable to economic downturn," IPA said.
"It is the view of the IPA that Western Australia needs to reform in the good times, rather than wait to be compelled to do so either by slowing economic growth or federal interference."