The Western Australian State Budget 2023-24 was handed down by Premier Mark McGowan on 11 May 2023 with a net surplus of $3.3 billion. For the built environment, emphasis was on housing supply and improving health and mental health services. This digestible summary highlights key investments that may inform your business development strategy. Sources are linked for convenience if you wish to dive into the details.

Housing

Within a $750 million housing investment, significant focus is on social housing and initiatives for those unhoused, increasing the capacity of the residential construction workforce and to encourage urban infill and regional land supply. $450 million is directed to the Social Housing Investment Fund to increase the number of social houses by 2800, for a 4000 total. $49 million of this is directed to a 100-home pilot program, Regional Supportive Landlord Model. The Bentley Residential Redevelopment will be facilitated by $48 million from the budget, and $61 million will fund Government Regional Officer Housing refurbishments and new constructions.

Although the number of new constructions indicates more will be able to buy, it’s anticipated that rental prices will continue to surge and affordable rentals may become a priority.

Assisting the residential construction sector, initiatives include increasing the Base Employer Grant from $10K to $12K, broadening the Group Training Wages Subsidy to include residential and commercial apprentices, a $2000 training completion payment for apprentices and $11 million towards a visa subsidy scheme to attract more international, skilled workers.

In response to Cyclone Ellie, there will also be a $33 million temporary accommodation package proceeding.

Sources: WA Budget Overview, Financial Review: WA Budget Winners and Losers, ABC: WA Budget 2023

Community

$27.5 million is allocated to upgrades at the Wadjemup Burial Ground and repairs associated with the Quod building on Rottnest Island. Maintenance works will be undertaken at Geraldton Aboriginal Short Stay Accommodation with $8 million of the budget. Additionally, a family and domestic violence hub will be established in Broome ($16.3 million), while Mirrabooka and Kalgoorlie hubs will be extended ($13 million).

In the sports sector, the State Hockey Centre will be redeveloped with $127 million of the budget and $55 million will be contributed to the WACA’s Ground Improvement project which includes construction of a new aquatic centre. The Community Sporting and Recreation Facilities Fund will receive $15 million for upgrades, particularly to ensure suitability of change rooms for women’s sports. Construction of High Wycombe Community hub, co-funded with the Commonwealth, will receive $60 million of the budget.

Perth Concert Hall will also be redeveloped with $97 million of the budget, establishing it as a premium cultural precinct.

Source: WA Budget Overview

Health

A strong pipeline of construction in the health sector is anticipated as between 2022-23 to 2025-27 it’s predicted that $2.7 billion will be spent on sector infrastructure. This includes $544 million over four years towards construction of a new Women and Babies Hospital, in total a $1.8 billion project. Other major works include $150 million funding for Bentley Health Service Surgicentre, a 24-bed ward and six new theatres.

Mental Health

$219 million is directed to the stage 1 expansion of Graylands Hospital including 53 new forensic beds, and $35.5 million is allocated to mental health including an upgrade of the mental health inpatient ward at Perth Children’s hospital.

Sources: WA Budget Overview, Financial Review: WA Budget Winners and Losers, Grant Thornton: WA Budget delivers another multi-million-dollar surplus

Education

With $227 million of the budget directed to education infrastructure, major works include a $100-million upgrade of Rockingham and Safety Bay High Schools, $27 million for construction of Henley Brook South Primary School, $20 million for the rebuild of Hillary’s Primary School and $27 million for Wattleup (East) Primary School. Additionally a significant redevelopment of Roebourne District High School will be funded with $72 million. $27 million will fund maintenance works across public schools, and $6.8 million for upgrades to Agricultural Colleges state wide.

Source: WA Budget Overview

Climate Infrastructure

This budget includes $3 billion towards achieving net zero emissions by 2050. Infrastructure investment includes $2.3 billion for Synergy to deliver a 500 MW Battery Energy Storage System in Collie and a 200 MW in Kwinana. $368 million will fund a wind farm at King Rocks and expansion of the wind farm at Eneabba.

Source: WA Budget Overview, ABC: WA Budget 2023

Industrial and Transport Infrastructure

A $35 million increase is committed to the Industrial Land Development Fund to attract investment to Pilbara industrial areas. $2.5 billion (co-funded with the Commonwealth) will be directed to transport infrastructure via METRONET, including construction of new train stations such as Greenwood and Karnup.

Source: WA Budget Overview, ABC: WA Budget 2023