Upgraded royalties forecasts have added $2.4 billion to the State Budget over the next four years, providing a major boost to the WA Government’s ability to fund the essential services and infrastructure West Australians rely on.
Today’s release of the Mid-Year Review confirms the resources sector is expected to contribute $10.3 billion in royalties and payments in 2025-26 – up from $8.6 billion in the Budget in June – which equates to around a fifth of total general government revenue.
Chamber of Minerals and Energy WA (CME) Chief Executive Officer Aaron Morey said mining royalties and North West Shelf grants had generated more than $82.7 billion since 2017 – and were now on track to reach $93 billion by the end of FY26.
“The $82.7 billion in royalties and North West Shelf grants over the past eight years is more than enough to cover the entire $61.9 billion Asset Investment Program over the same period,” Mr Morey said.
“Every single thing the Government has built since 2017 – including every road, railway line, school and hospital – could have been funded by royalties and North West Shelf grants alone.
“Not only that, the $20.7 billion left in the bank is enough to cover nearly everything the Government intends to build over the next two years.
“The simple truth is WA would be unrecognisable without mining. West Australians have built a world-class resources sector and that sector, in turn, has built us a world-class State.”
The Mid-Year Review contains upward revisions to this year’s royalties from both iron ore (from $6.6 billion to $8.2 billion) and gold (from $918 million to $1.08 billion).
In addition to royalties, the resources sector accounts for around a fifth of payroll tax, which is forecast to come in at $6.1 billion in 2025-26.
With the WA Government embarking on a significant infrastructure spend over the next four years – totalling $41.8 billion – Mr Morey said supporting the resources sector to continue delivering for all West Australians was more important than ever.
“Nearly a third of West Australian jobs rely on mining and energy extraction, and our sector has supplied a quarter of government revenue over the past eight years,” Mr Morey said.
“That kind of economic contribution doesn’t materialise overnight. It takes foresight, planning and an enduring commitment to putting in place the fundamentals needed to attract large-scale investment.
“Supporting the resources sector ongoing success means protecting the revenue base that underpins our essential services and delivers the next wave of major infrastructure projects.
“The opportunity ahead of us in coming decades is enormous. Working together, we can turn that potential into lasting jobs, stronger communities and a bigger dividend for every West Australian.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382