The Western Australian government has unveiled a historic $9.1 billion boost to the health sector as part of the 2026 state budget, marking the largest ever hospital building program in the state's history.
Record Investment in Healthcare Infrastructure
The landmark funding package, announced by Treasurer Rita Saffioti, will see a massive expansion of hospital capacity across the state. The investment includes the construction of new hospitals, major upgrades to existing facilities, and the expansion of emergency departments to meet growing demand.
Key projects include a new 600-bed hospital in the northern suburbs, a major redevelopment of Royal Perth Hospital, and new community health centres in regional areas. The government says the program will create thousands of construction jobs and significantly reduce waiting times for elective surgery.
Emergency Department Expansion
A significant portion of the funding will be directed towards expanding emergency departments, which have been under immense pressure in recent years. The budget allocates $1.5 billion for new emergency department capacity, including a dedicated children's emergency centre at Perth Children's Hospital.
Health Minister Amber-Jade Sanderson said the investment would transform healthcare delivery in WA. 'This is the single largest health infrastructure program in our state's history,' she said. 'We are building the hospitals that Western Australians need, now and into the future.'
Regional Health Boost
Regional areas will also benefit significantly, with $2.3 billion allocated to upgrade hospitals in Bunbury, Geraldton, Albany, and Kalgoorlie. The government says this will improve access to specialist services and reduce the need for patients to travel to Perth for treatment.
The budget also includes funding for additional mental health beds, with $800 million set aside for new mental health facilities across the state. This includes a new 50-bed mental health unit at Fiona Stanley Hospital and expanded community mental health services.
Funding Sources and Economic Context
The health boost is funded by the state's strong economic performance, driven by the resources sector. The government has also benefited from higher-than-expected GST revenue and stamp duty receipts. The budget forecasts a surplus of $2.5 billion for 2026-27, down from the previous year due to the increased spending.
Shadow Treasurer Neil Thomson criticised the government for not doing more to address cost-of-living pressures, but acknowledged the importance of health investment. 'While we support investment in health, we need to ensure it delivers real outcomes for patients, not just new buildings,' he said.
Timeline for Delivery
The hospital building program is expected to be delivered over the next five years, with the first new facilities opening in 2028. The government says it will fast-track planning and construction to ensure projects are delivered on time and within budget.
Industry groups have welcomed the investment, saying it will provide a significant boost to the construction sector and create long-term employment opportunities.
