By the Numbers: What Perth's Latest Council Budget Reveal About Our City's Future

Perth's local government faces a reckoning, and the numbers paint a sobering picture. The City of Perth's latest financial disclosure, tabled at Tuesday's council meeting, shows that operating costs have surged 12.7% across the 2025-26 financial year—outpacing both inflation and projected revenue growth by significant margins.

The figures reveal the scale of the challenge. Maintenance backlogs on city streets have reached $47 million, with pothole repairs in suburbs like Mount Lawley and Subiaco consuming nearly $3.2 million alone. Meanwhile, the cost of operating the Perth Cultural Centre precinct—including the Art Gallery of Western Australia, State Theatre Centre, and Library—has climbed to $28.4 million annually, a 8.9% increase from last year.

Rates, unsurprisingly, are becoming a flashpoint. The average residential property in Perth's inner suburbs now faces a 6.1% rate increase for the coming year, translating to an additional $180 for a median-valued property in East Perth. Commercial properties in the CBD, already paying among Australia's highest city centre rates, will shoulder a 7.3% increase.

The data reveals where priorities lie—and where they've shifted. Investment in active transport infrastructure (bike lanes, pedestrian improvements) has doubled to $8.7 million, reflecting council's climate and liveability commitments. Yet spending on homelessness support has remained flat at $2.1 million, even as rough sleeping in the Northbridge and City Beach areas has increased 19% year-on-year according to latest street count data.

Staffing numbers tell another story. The council's workforce has grown by 47 full-time equivalent positions to 892 total staff, primarily in compliance, planning, and community services. Administrative overhead now consumes 31% of the general operating budget—a proportion several councillors flagged as unsustainable.

Perhaps most telling: the council's reserve fund, which stood at $84 million in 2021, has declined to $61 million. At the current burn rate, financial advisors suggest Perth has approximately 3.2 years of reserves remaining—a timeline that has prompted urgent discussions about asset sales and service consolidation.

These aren't abstract figures. They represent the choices facing a city of 2.3 million people trying to maintain services, upgrade ageing infrastructure, and respond to emerging needs—all while revenue growth stagnates. For ratepayers and residents, the numbers suggest Perth's financial squeeze is only beginning.

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