Overview
The 2026-27 State Budget provides a mixed response to sustaining community infrastructure investment.
Funding for the Targeted Underground Power Program (TUPP) in 2026-27 has been reduced by $8.1 million to increase Western Power’s capacity to deliver on the critical housing shortage issues. Following a slight increase in FY 2027-28, a further reduction of $9.4 million is forecast in FY 2028-29. This equates to a 26% reduction in the program's funding levels over the budget years.
Community Sporting and Recreation Facilities Fund (CSRFF) investment has been maintained at $12 million per annum across the forward estimates. Funding is also maintained across other key sports and recreational infrastructure programs including the Club Night Lights Program and the Female Changerooms Fund.
There is a significant new allocation of $4.59 million for a Circular Economy Grants Program – targeting collection and recycling for end-of-life solar panels and embedded batteries and to assist with the development of local recycling capacity and markets.
The Budget allocates $39.5 million, of the $90.2 million income from the Waste Avoidance and Resource Recovery (WARR) Levy, to the Waste Strategy delivery.
The Budget sees a $7.7 million reduction in WARR Levy revenue. This is in line with what WALGA anticipated, as there is less waste going to landfill due to efforts from Local Government and the community, through FOGO implementation and energy recovery.
WALGA Comment
The Budget prioritises the redirection of skilled Western Power employees and internal capacity to focus on the housing shortage but continues to maintain the TUPP at a minimum level of investment. This will support retaining the Underground Power workforce, pipeline of projects, and contractor capability. Once housing concerns have eased, WALGA would support a faster delivery profile to accelerate the TUPP program.
Given the uncertainty about the future of the CSRFF, WALGA is pleased to see that allocations have been retained at $12 million per annum across the forward estimates. WALGA continues to seek advice from State Government on the reopening of the current CSRFF funding round.
WALGA welcomes the new funding for Circular Economy Grants. Embedded batteries are of particular concern for Local Government due to the fire risk they pose for waste vehicles and facilities. The anticipated reduction of the funds from the WARR Levy has commenced and, in line with WALGA’s Budget Submission, the Government needs to invest now in strategic waste initiatives across Western Australia.
