The State Government’s goal of diversifying the economy includes a strong commitment in this Budget towards the renewable energy transition. Other key focus areas include tourism, manufacturing, and creative industries.
Overview
The focus on decarbonisation includes a $1.4 billion Clean Energy Fund including Clean Energy Link transmission projects to connect new renewable generation and storage facilities. Additional investments in decarbonisation include $85 million to support the development of green iron and steel, $150 million for a Vanadium Battery Energy Storage System near Kalgoorlie, and $67.3 million to support PoweringWA’s work in the State’s energy transition.
Manufacturing receives support through the $156 million Made in WA Energy Affordability Investment Program, providing low interest loans to improve energy efficiency and invest in advanced manufacturing equipment. The $91.7 million Strategic Industries Fund will fast-track key industrial precincts across the Western Trade Coast, Kemerton and Boodarie Strategic Industrial Areas.
Tourism and Creative Industries have a range of investments committed, including $40.4 million for creative industries and arts organisation, and $18 million to implement Jina: WA Aboriginal Tourism Action Plan 2026-2030 to support Aboriginal participation in the tourism sector.
WALGA Comment
The Local Government sector plays an active role in supporting local economies across the State, and readily leverages funding streams to build opportunities for local industry and residents. Two important enablers for the sector to continue delivering this value are the Regional Economic Development Grants, and a yet-to-be-realised fund for Arts and Culture Facilities.
The Regional Economic Development Grants (RED Grants), administered by the Regional Development Commissions, have accelerated the scale-up of multiple industries and have been well utilised by the Local Government sector. Based upon the success of this program, WALGA’s Budget Submission called for a doubling of the fund to $11 million per annum for 10 years. The Budget misses the opportunity to extend and increase the impact of the RED Grants, with current budget allocation estimated to be $8.4 million in 2025-26 and decreasing to $7 million in 2026-27. Funding is projected to decrease further to $5.3 million in 2027-28 and continue decreasing to $5 million in 2028-29 and 2029-30.
While the $40.8 million commitment to creative and arts industries is welcome support for creative industries across the State, Local Governments lack a funding stream to support key creative infrastructure that underpins the development of this industry.
WALGA will continue to urge the State Government to create a Community Arts and Culture Facilities Fund providing $60 million annually for cultural infrastructure managed by Local Governments for their communities across the State.
