WA Budget puts housing at centre of record $4.7 billion investment drive

The Western Australian Government’s 2026-27 State Budget, handed down on Thursday (7 May), places housing at the centre of a broad-based investment strategy aimed at boosting supply, supporting construction capacity and easing affordability pressures across the state.

The Cook Labor Government has committed a record $4.7 billion in additional housing investment, forming part of what it describes as the most significant housing and infrastructure program in Western Australia’s history.

The package spans land release, enabling infrastructure, social and affordable housing delivery, and first home buyer assistance measures, alongside workforce and industry capacity initiatives designed to lift construction output.

The Budget also confirms a strong fiscal position, with an expected operating surplus of $2.4 billion in 2026-27 and continued surpluses over the forward estimates. The Government says this underpins a $44.3 billion infrastructure pipeline over the next four years, including $13.2 billion in 2026-27 alone.

Premier Roger Cook said the state’s financial position had enabled sustained investment in housing and essential services.

“Our strong financial management has helped keep Western Australia’s economy the strongest in the nation,” Mr Cook said.

“It’s allowed us to invest in our priorities, including providing cost-of-living relief and more homes, hospitals and jobs for Western Australians.”

Treasurer Rita Saffioti said the Budget was designed to balance immediate household pressures with long-term supply-side reforms.

“We’re unlocking housing supply, building more homes, and helping first home buyers,” Ms Saffioti said.

Stamp duty relief

A key component of the housing strategy is a $522 million commitment to enabling infrastructure, including power, sewerage and water upgrades to unlock new residential land in growth areas. The Government says this investment will facilitate thousands of additional dwellings across metropolitan Perth and regional centres.

First home buyer support also features prominently, with $208 million allocated to stamp duty relief through higher thresholds and expanded concessions. The changes are aimed at improving entry points into the market, particularly for vacant land purchases.

Alongside this, the Budget includes broader workforce and supply chain measures intended to address ongoing construction constraints, including training investment and manufacturing capability expansion for housing-related components.

Industry groups have broadly welcomed the scale of the housing package, while cautioning that delivery will depend heavily on labour availability and sector capacity.

The Urban Development Institute of Australia (UDIA WA) described the Budget as a “once in a generation opportunity” to address housing supply constraints, while warning that workforce shortages remain the critical bottleneck.

“Today’s State Budget demonstrates WA’s unique financial position that facilitates record housing and infrastructure investment that other States simply cannot afford,” UDIA WA Chief Executive Tanya Steinbeck said.

“This is a once in a generation opportunity to ensure Western Australians have an affordable, accessible place to call home, that is only held back by construction sector capacity to deliver it.”

Ms Steinbeck pointed to new funding aimed at easing supply constraints, including $522 million for enabling infrastructure and more than $51 million for construction training and workforce capacity initiatives.

Addressing first home buyer settings, she said changes to stamp duty thresholds would have a meaningful impact at the margins of affordability.

“With the average land price sitting at $425,000, increasing the stamp duty exemption threshold for vacant land to $450,000 for first home buyers could make the difference in getting into their own home,” Ms Steinbeck said.

She also highlighted the importance of aligning different assistance measures.

“The delinking of the stamp duty exemption from the First Home Owner Grant cap means these buyers can still get the exemption or concession even if they aren’t eligible for the grant,” she said.

Labour challenges to overcome

Master Builders Western Australia also welcomed the housing focus, describing the Budget as a clear acknowledgement of the sector’s central role in addressing supply pressures.

MBAWA Chief Executive Matt Moran said the Government had responded to industry calls to prioritise housing delivery and workforce expansion.

“WA is the nation’s economic powerhouse and it’s critical taxpayers’ money is used wisely to increase the supply of homes and support the building and construction industry so it can deliver,” Mr Moran said.

He said workforce shortages remained the single biggest constraint on delivery.

“The state won’t be able to build enough homes to fix the housing crisis without growing the building and construction workforce,” he said.

Mr Moran welcomed a $156.7 million investment in workforce development, alongside targeted measures such as expanded training subsidies, fee-free TAFE places and visa-related support for construction labour.

He also noted support for supply-side initiatives, including funding for enabling infrastructure and development at key precincts.

In particular, he pointed to investment in land release programs and infrastructure funds designed to unlock shovel-ready sites.

“These are supply solutions, not demand incentives,” he said.

“We need to attract more workers to the industry and more land unlocked.”

MBAWA also highlighted first home buyer assistance measures, including stamp duty relief and affordable housing construction allocations.

The broader Budget includes additional measures aimed at easing cost-of-living pressures and diversifying the state economy, but housing remains the dominant structural focus, with billions directed across the supply chain from land servicing through to construction delivery.

The Government has also committed significant funding to health, energy transition projects and infrastructure delivery, supported by ongoing surpluses and relatively low debt levels compared to other jurisdictions.

WA’s stronger emphasis on housing than Victoria’s

A notable feature of the Budget is its comparison with other states’ fiscal positions and housing priorities.

The contrast with Victoria’s State Budget, handed down earlier this week, is notable. While the Allan Government announced further social housing funding and extended stamp duty concessions, housing played a comparatively smaller role overall, with several industry groups describing the Victorian Budget as a missed opportunity to meaningfully boost supply and support residential construction activity.

Western Australia’s net debt is forecast to remain the lowest in the nation, with the state retaining a triple-A credit rating from both major ratings agencies.

The Government says this financial position continues to underpin its ability to fund large-scale housing and infrastructure programs without significantly increasing debt exposure.

As housing demand continues to outpace supply in key metropolitan markets, the effectiveness of the Budget’s measures will ultimately depend on how quickly industry capacity can respond to what is now one of the largest coordinated housing investment programs in the state’s history.