The Western Australian State Government will release its 2026-27 State Budget on Thursday, May 7, amid the ongoing housing supply crisis. The budget papers are expected to maintain a strong focus on unlocking housing supply and reducing the cost of delivering new homes.
This focus is more critical than ever due to the added impact of the Middle East crisis, which has caused supply chain disruptions that are putting upward pressure on the cost of materials and machinery needed for residential construction.
Key Initiatives Already Announced
In the lead-up to this year's budget, the State Government has flagged two important initiatives aimed at supporting the delivery of more medium and high-density housing options to the market.
The first is the new Pre-sale Guarantee scheme, to be delivered by Keystart. This scheme will assist eligible apartment and townhome projects in meeting lender pre-sale requirements, thereby supporting project viability.
Secondly, Treasurer Rita Saffioti has announced that the off-the-plan duty concession will be extended for another two years, and the purchase price cap for eligible dwellings, including new apartments and townhomes, will be lifted to $900,000.
UDIA WA's Recommendations
While these initiatives are welcome, UDIA WA expects further measures in the budget papers. Late last year, UDIA WA submitted its 2026-27 Pre-Budget Submission to the State Government, outlining targeted investment areas to best support the industry in delivering needed homes.
Funding for Key Agencies
UDIA WA has identified the need to ensure adequate funding is allocated to key agencies, including the Water Corporation, to fund essential capital works that support the delivery of new land for housing.
Housing Enabling Infrastructure Fund
The organisation is also seeking further funding for the Housing Enabling Infrastructure Fund, established last year to support long-lead infrastructure needed to unlock residential development in key growth areas.
UDIA WA's recent Perth and Peel Region Growth Corridors Infrastructure Requirements Report identified an initial investment of $596 million over four years in strategic enabling infrastructure was needed to unlock land and catalyse the delivery of more than 115,000 homes.
Infrastructure Development Fund and Finance Facility
Additionally, UDIA WA advocates for the extension and expansion of the Infrastructure Development Fund to assist eligible apartment projects with upfront infrastructure costs, alongside establishing a low-interest mezzanine finance facility. One possible manager for this new facility could be Keystart, complementing the Pre-sale Guarantee scheme to help bridge feasibility gaps for shovel-ready projects.
All of UDIA WA's recommendations are focused on providing proactive, shared solutions to the housing shortages impacting all Western Australians. The organisation looks forward to seeing what is included in this year's budget papers next week.
