Western Australian Treasurer Rita Saffioti's second budget on Thursday delivered a $2.5 billion windfall for the state for the current financial year, with a further $2.4 billion surplus projected for 2025-26.
It's the state's seventh consecutive operating surplus, which the Cook government says will help the state diversify and set its economy up for the future.
"This budget is being handed down at a time when the geo-political situation has been turned on its head," Ms Saffioti told reporters.
"We have unprecedented tariff policies coming out of the US, while the worsening conflict in the Middle East is creating significant uncertainty in global markets."
Ms Saffioti said the budget aimed to "fortify" WA against global shocks, invest in economic infrastructure and set the state up for a future with plenty of jobs.
The Cook government's measures include $2.7 billion to bolster economic growth and create jobs, with a focus on local manufacturing.
The financial blueprint also includes a further $1.4 billion has been allotted to boost housing supply, including measures to increase the construction workforce and help families access affordable homes.
Almost $1 billion will be spent in cost-of-living relief, including residential battery rebates and no-interest loans, and reduced public transport fares.
The measure also supplies free student travel and pensioner discounts, and student assistance payments for families.
Health and mental health services will receive $1.4 billion to increase the number of doctors and nurses working in the state and bolster infrastructure, creating more hospital beds.
A further $1.8 billion has been allocated to education and training to build more schools, upgrade others, boost before and after class care, and support regional learning.
Net debt is expected to grow to $33.5 billion at the end of the current financial year, $1.1 billion than forecast, and expand to $42.4 billion over the forward estimates.
The state is expected to stay in the black with operating surpluses between $2.4 and $2.8 billion predicted over the next four years.
Economic growth is forecast to be 2.5 per cent in the year ahead, with 0.5 per cent expected in 2024-25 and 3 per cent in 2026-27.
Ms Saffioti said WA was the most resilient state in the nation and remained its economic powerhouse, with manageable debt levels.
The market for WA's key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said.
The treasurer said WA's controversial GST share was fundamental to the state's ability to fund new industrial projects that sent much of their revenue to federal coffers.
"We have an abundance of the minerals that the world needs and we've got the solar and wind capacity that the world is striving for," she said.
"What we need to do is invest in the infrastructure to support the aspirations of the private sector, and that's what we're very much tailored to."
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