WA Premier Mark McGowan delivers $5.6 billion surplus in budget

Western Australia is sitting on a mountain of cash, with $9.2 billion growth in iron ore royalties this year fuelling a state budget bonanza despite the pandemic.

Premier Mark McGowan has delivered a record $5.6 billion surplus in his first budget as treasurer, double the previous record in 2007.

"By keeping the state safe from COVID-19, we've delivered the best economic and social outcomes in Australia and possibly the world," Mr McGowan said.

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The state's exports rocketed to $223 billion, accounting for well over half of the national total, as states in the midst of Delta outbreaks bleed money.

"Everything happening here in our state, no lockdowns and industry open, is driving the nation and supporting them all financially and economically," Mr McGowan said.

But the key to protecting that success is keeping COVID-19 out.

As such, there's no forecast on a date to remove the hard border.

"The budget says throughout it that avoiding an outbreak is the most important thing we can do," Mr McGowan said.

The big money will be spent on safeguarding a vulnerable health system.

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There will be $1.9 billion going towards 332 new hospital beds, a third for mental health, along with doctors and nurses to ease pressure on emergency departments.

$1.8 billion is set aside for the construction of a new Women's and Babies Hospital.

Another $1 billion will be invested in the COVID-19 response.

But the Australian Medical Association says that money should be redistributed to fix operational struggles.

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"COVID prepareness does nothing for waitlists for kids to see a specialist. A child in an adolescent hospital does nothing for reducing ramping. COVID preparedness has nothing to do with business as usual," AMA WA president Dr Mark Duncan-Smith said.

There's $30.7 billion for new infrastructure projects – $9.1 billion of that in the regions.

$750 million will be used to establish a climate action fund.

$1.4 billion has been reserved for the construction of the state's next desalination plant.

The premier was unapologetic of WA's good fortune, ready to fight any challenge to WA's GST share from other states drowning in debt.

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"I kid you not, they will be wildly angry and want to undo the GST deal because they failed to budget properly," Mr McGowan said.

There's little for families, with news household fees will increase by almost $100.

The opposition said the budget doesn't go close to utilising the major windfall.

"A $5.6 billion surplus tucked in the premier's back pocket, when we have crisis in health system, housing crisis, worker shortages... it's unconscionable," opposition leader Mia Davies said.

State debt continues to slide down to $32 billion, but forward estimates show it will grow again, while WA's surplus is forecast to fall to $2.8 billion next year

"This is careful, sensible, reasonable and responsible budgeting," Mr McGowan said.