WA budget boosts manufacturing, energy transition and industrial investment

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The Western Australian Government says its 2026-27 State Budget will deliver billions of dollars in investment aimed at supporting manufacturing, energy transition projects and broader economic diversification across the State.

In a statement, the WA Government said the Budget included measures to support local manufacturing, industrial development and workforce growth, alongside investments in energy infrastructure, ports and housing construction.

The Cook Labor Government said Western Australia’s economy had grown by 27.2 per cent over the past five years, compared with the national rate of 20.9 per cent, while more than 380,000 jobs had been created since 2017.

Among the major allocations is $1.4 billion for the Clean Energy Future Fund, which the government said would help integrate more renewable energy projects into the State’s main electricity grid, including through the proposed Clean Energy Link – East transmission project.

A further $973 million will be invested into Western Power’s network to expand electricity capacity for industrial and residential developments, particularly across regional parts of the State.

Manufacturing support measures include a $153.3 million Made in WA Energy Affordability Investment Program, aimed at helping manufacturers improve energy efficiency and invest in advanced manufacturing equipment.

The Budget also includes $48 million for two Housing and Infrastructure Advanced Manufacturing facilities in Kwinana and Neerabup to support the delivery of medium and high-density housing.

Premier Roger Cook said the government’s focus remained on maintaining economic growth while expanding renewable energy and manufacturing capacity.

“Western Australia’s economy is the strongest in the nation, and I want to keep it that way,” Cook said.

“By investing in our State’s energy transition, delivering our Made in WA plan and fostering a vibrant and creative community, my government is continuing to diversify the economy and create high-quality jobs for all Western Australians.”

Deputy Premier and Treasurer Rita Saffioti said the Budget continued the government’s focus on local industry and infrastructure investment.

“We’ll make more things here, continue to diversify our economy, and invest in major projects like Westport, which will underpin our State’s economic growth for generations to come,” Saffioti said.

The government will also invest an additional $647 million into the Westport project, including funding for Anketell Road upgrades linked to the future port development.

Through the Strategic Industries Fund, $91.7 million will be directed to the Western Trade Coast, Kemerton and Boodarie Strategic Industrial Areas to support investment attraction and expand development-ready industrial land.

To support the lithium sector, the government announced a $30 million extension of fee waivers for Tianqi Lithium Energy Australia and Covalent Lithium until the end of 2027.

Manufacturing Minister Amber-Jade Sanderson said the Budget would support both renewable energy projects and manufacturing activity.

“This will support major renewable projects delivering more affordable, reliable energy for Western Australians while creating thousands of local jobs,” Sanderson said.

“This is on top of our commitment to support and diversify Western Australia’s manufacturing sector.”

The Budget also includes funding aimed at supporting the building and construction sector, including $19.6 million for additional Group Training Organisation Wage Subsidy Program places, $11 million to extend construction visa incentives, and $2.1 million to continue the Construction Migration Office.

Additional allocations include $50 million for the Port of Port Hedland’s Zone 5 Bypass Channel project, $4.8 million for a business case examining additional capacity at the Port of Bunbury, and a $500 million Major Projects Fund supporting developments including Scitech and the Aboriginal Cultural Centre.