07/05/2026
Western Australia’s fiscal position is becoming increasingly contradictory. The State continues to announce operating surpluses, yet net debt continues to escalate year after year — projected to rise from $34.5 billion in 2025–26 to over $44 billion by 2029–30.
A surplus should represent an opportunity to strengthen the balance sheet, reduce liabilities, and build long-term resilience. Instead, the Government is effectively exhausting every dollar of surplus while simultaneously increasing borrowing. That is not disciplined financial management — it is structural expansion of expenditure masked by headline surplus figures.
At a time of elevated living costs and persistent inflationary pressure, continued government spending growth only compounds the problem. When public expenditure accelerates faster than restraint or productivity, the broader economy absorbs the consequences through higher costs, reduced efficiency, and greater long-term debt servicing burdens on taxpayers.
The most concerning aspect is the absence of prioritisation. Rather than pursuing serious structural savings or targeted infrastructure efficiency, the Government continues to favour politically marketable short-term measures. A one-off $100 fuel voucher is economically insignificant for most households and does little to address underlying cost-of-living pressures. In practical terms, it resembles a taxpayer-funded electoral incentive rather than meaningful economic reform.
Even basic infrastructure decisions raise questions around fiscal prudence. For starters, relocating the ferry terminal to RPYC Jetty A could reportedly save approximately $90 million in public expenditure alone. If obvious opportunities for savings of that scale are ignored while debt continues to climb, it becomes increasingly difficult to argue the State is genuinely committed to responsible financial management.
If debt is not reduced during periods of strong revenue, resource royalties, and operating surpluses, then when exactly will it be reduced?