Perth City Council Axes $45m Transport Plan as Budget Crisis Deepens

Perth's local government has faced a turbulent week as the City of Perth announced the indefinite postponement of a $45 million active transport corridor project spanning from Northbridge to East Perth, citing mounting budget pressures and delayed state funding commitments.

The decision, confirmed at Tuesday's council meeting, affects the proposed bike lane and pedestrian pathway expansion that was earmarked to transform key sections of Beaufort Street and improve connectivity through the cultural precinct. Residents and business owners on the affected routes have expressed frustration, with the project having been flagged in the city's long-term strategic plan since 2023.

"We've had to make difficult choices," a council spokesperson confirmed, noting that rising operational costs—including waste management, street maintenance, and staffing—have consumed budget allocations faster than anticipated. The city's reserve fund, which stood at $67 million in 2024, has contracted by approximately 12 per cent this financial year.

The announcement comes as ratepayers brace for steeper bills next year. Initial modelling suggests residential rate increases could reach 6.5 per cent for 2027, higher than the state government's recommended cap of 5.75 per cent. Pensioners and hardship cases may qualify for relief, though details remain under review.

In brighter news, council approved a $3.2 million upgrade to Kings Park's visitor facilities, including improved accessibility to the botanic gardens and refurbished public amenities. The project, funded through a combination of federal grants and existing reserves, is expected to commence in September.

The Hay Street precinct also received a boost, with council endorsing a new mixed-use development framework aimed at revitalising the CBD's retail district. Property owners along the thoroughfare have been invited to lodge expressions of interest for ground-floor activation grants worth up to $50,000 per business, part of a broader $8 million post-pandemic recovery initiative.

Separately, the Perth Parking Authority announced revised tariffs for on-street parking in the CBD, effective from July 15. Peak-hour rates will increase to $4.50 per hour—up 50 cents—while off-peak rates remain unchanged. The authority stated the increase reflects inflation and maintenance costs for the city's 12,000 on-street spaces.

Council meets again on July 22 to deliberate final budget proposals ahead of the August adoption deadline. Several community groups have flagged intentions to lodge formal submissions opposing the rate rise.

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