The Chamber of Minerals and Energy of Western Australia (CME) reports that upgraded royalties and North West Shelf Grant payments boosted the Western Australia resources sector’s contribution to the state government to $11.2-billion in the 2026 financial year.  

This formed the backbone of a $3.5-billion operating surplus and helped fund $1-billion in new cost-of-living relief for West Australians.

Western Australia’s Treasury expects $10-billion in royalties and North West Shelf Grant payments in 2026/27, laying the foundation for another expected operating surplus of $2.4-billion next year – which would be the ninth consecutive year that Western Australia has an operating surplus.

CME welcomes the latest release of the 2026/27 Western Australia Budget, which confirmed that total royalty and North West Shelf Grant payments over the past eight years of surpluses totalled $88-billion. This is in addition to hundreds of millions invested in community infrastructure.

The resources sector has provided more than a quarter of state government revenue over that period – which spans the Covid-19 pandemic and two worldwide oil shocks – underlining the critical importance of mineral and energy exports to the sustained strength of Western Australia’s economy through periods of global turmoil.

The $88-billion in royalties and North West Shelf Grants collected since the 2019 financial year compares to a total Asset Investment Program of $69.1-billion over the same period, meaning revenue generated from the Western Australia resources sector could comfortably fund every single infrastructure project the state government has built over the past eight years.

It is also nearly enough to fund the salaries for every public sector nurse, doctor, teacher and police officer, which total $92.6-billion over that span.

CME economics head Aaron Walker says the past decade demonstrated the Western Australia resources sector was the state’s first and best line of defence against global turmoil.

“You can always bank on resources in a time of crisis. In a world of uncertainty, iron-ore, gas and gold keep getting sold.

“Those three commodities alone will deliver West Australians $10.4-billion in the 2026 financial year – which is $2.5-billion above Treasury’s forecasts this time last year.”

Walker adds that after a few down years, lithium prices have also rebounded in recent months and the key battery-making ingredient contributed $460-million in royalties in the 2026 financial year.

With Treasury forecasting $10-billion in royalties in 2026/27, Walker deems it critical that the resources sector is supported, to continue operating throughout the global energy crisis.

“Close to 650 000 West Australians rely on our industry for their jobs but our Asian trading partners are just as reliant on our minerals and energy.

“That makes our commodities a significant strategic asset when sourcing the fuel and fertiliser needed to keep our economy moving,” Walker explains, thereby welcoming the Western Australia government’s actions to enhance fuel security, including by establishing a strategic diesel stockpile.

The Budget also contained measures to support the longer-term success of Western Australia’s resources sector, including investment in South West Interconnected System (SWIS) transmission infrastructure and additional regional housing, as well as the designation of the Western Trade Coast as a State Development Area.

The 2026/27 Budget contains a range of measures supporting industry, including a Clean Energy Fund worth $1.4-billion to support new transmission infrastructure in the SWIS to connect new renewable-energy projects. This measure is enhanced by recent power purchase agreements signed by Synergy and Water Corporation with wind farm developers.

The Budget further provides for $651-million towards doubling the capacity of the Dampier seawater desalination plant as part of a 50:50 joint venture with Rio Tinto. The $1.1-billion plant will deliver eight gigalitres of desalinated water a year to the West Pilbara Water Supply Scheme, reducing pressure on regional aquifers.

Western Australia’s Government Regional Office Housing programme will receive $419-million, plus $170-million in contributions from Rio Tinto, BHP and Hancock, to supply more than 500 additional houses for essential workers in regional Western Australia, including Bunbury, Kalgoorlie, Port Hedland, Karratha, Broome, Geraldton and Albany, by 2030.

Moreover, Western Australia includes in its Budget an allocation of $92-million from the existing Strategic Industries Fund to assemble land in the Western Trade Coast and Kemerton strategic industrial area as well as planning works for common user infrastructure and a desalination plant at Boodarie strategic industrial area.