Upgraded royalties and North West Shelf Grant payments boosted the WA resources sector’s contribution to the State Government to $11.2 billion this financial year, forming the backbone of a $3.5 billion operating surplus and helping fund $1 billion in new cost-of-living relief for West Australians.
Treasury forecasts $10 billion in royalties and North West Shelf Grant payments in 2026-27, laying the foundation for another expected operating surplus – WA’s ninth in a row – totalling $2.4 billion next year.
The Chamber of Minerals and Energy WA (CME) welcomes today’s release of the 2026-27 WA Budget, which confirms total royalty and North West Shelf Grant payments over the past eight years of surpluses have 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 pandemic and two worldwide oil shocks – underlining the critical importance of mineral and energy exports to the sustained strength of WA’s economy through periods of global turmoil.
The $88 billion in royalties and North West Shelf Grants collected since FY19 compares to a total Asset Investment Program of $69.1 billion over the same period, meaning revenue generated from the WA 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 Head of Economics Aaron Walker said the past decade demonstrated the WA 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,” Mr Walker said.
“Between them, those three commodities alone will deliver West Australians $10.4 billion in FY26 – which is $2.5 billion above Treasury’s forecasts this time last year.
“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 FY26.”
With Treasury forecasting $10 billion in royalties in 2026-27, Mr Walker said it was critical the resources sector was supported to continue operating throughout the global energy crisis.
“WA’s resources sector has paid for everything the State has built over the past eight years — and then some,” Mr Walker said.
“Time and time again the resources sector has carried our State through global shocks and, just like during COVID and the European energy crisis, we are well placed to continue delivering through the unfolding conflict in the Middle East.
“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.
“CME therefore welcomes the WA Government’s actions to enhance WA’s fuel security, including the establishment of WA’s strategic diesel stockpile, which was supported by Rio Tinto.
“The Budget also contained measures to support the longer-term success of WA’s resources sector, including investment in 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 contained a range of measures supporting industry, including:
- Clean Energy Fund – $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.
- Dampier Seawater Desalination Plant – $651 million to double the capacity of the plant as part of a 50:50 joint venture with Rio Tinto. The $1.1 billion plant will deliver 8 gigalitres of desalinated water per year to the West Pilbara Water Supply Scheme, reducing pressure on regional aquifers.
- Government Regional Office Housing (GROH) program boost – $419 million, plus $170 million in contributions from Rio Tinto, BHP and Hancock, to supply over 500 additional houses for essential workers in regional WA (Bunbury, Kalgoorlie, Port Hedland, Karratha, Broome, Geraldton and Albany) by 2030.
- Strategic Industries Fund – Allocations of $92 million from the existing $1 billion Fund to assemble land in the Western Trade Coast and Kemerton SIAs as well as planning works for common user infrastructure and a desalination plant at Boodarie SIA.
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382