As the political landscape in Western Australia shifts, Premier Roger Cook and Deputy Premier Rita Saffioti find themselves navigating a challenging environment in 2026. Following a tumultuous election year in 2025, the new year promises to test the resilience of the Cook Government, as it faces pressing issues and significant public scrutiny.
Infrastructure Challenges Ahead
One of the most contentious projects on the agenda is the controversial street circuit and amphitheatre in Burswood, known as Perth Park. With a projected cost of $217.5 million, the business case prepared by ACIL Allen was forwarded to Infrastructure WA for assessment last November. Despite some internal calls to abandon the project, the government remains committed to its completion, hoping to garner public support once the construction is finished. Critics within the Opposition are poised to capitalize on any budget overruns, anticipating that voters will remember the costs long after the project is completed.
In addition to infrastructure issues, the government is under pressure to address healthcare challenges as it prepares for the winter of 2026. Following three consecutive months of record ambulance ramping, the need for a robust winter surge plan is evident. In Parliament, Meredith Hammat, the Health Minister, stated that a final plan to enhance hospital capacity will be unveiled by February. The government has also indicated that the acquisition of the St John of God Hospital in Mt Lawley will add approximately 100 beds to the public system. However, as the worst flu season on record continues to strain resources, questions remain about whether these measures will be sufficient.
Financial Negotiations and Industry Insights
Financial management remains a critical focus for Saffioti, especially concerning the 2018 GST deal. This agreement ensures that Western Australia receives at least 75 cents back for every dollar of GST collected. As the Productivity Commission prepares to deliver its review of GST distribution reforms by December 31, 2026, Saffioti’s ability to advocate for WA’s interests hinges on successful negotiations. With the absence of impending elections, the dynamics of these discussions could be complicated, prompting the Treasurer to enlist support from prominent business figures in the state.
Despite the challenges, the iron ore sector continues to provide a stable financial foundation for WA. Although prices are expected to fluctuate, they are unlikely to drop below the US$72 per tonne forecasted in the budget. Cook’s ambitious vision for green steel—aiming to integrate environmentally friendly practices in infrastructure projects—faces uncertainty. The Kwinana Neo-Smelt pilot plant is one of the initiatives that Cook plans to accelerate, with joint venture partners BlueScope, BHP, and Rio Tinto expected to make a final investment decision by mid-year. The pressing question remains: how low do emissions need to be for this steel to be classified as green?
As the new year approaches, Roger Cook’s leadership will be put to the test. He previously articulated a commitment to bolster the state’s economic success, stating, “my focus will be to build on our economic success so all Western Australians can benefit” ahead of January 1, 2025. With an array of significant issues on the horizon, only time will reveal whether Cook can achieve these ambitious goals, or if he will face the challenges that come with a political landscape in flux.
