SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER TO THE SHADOW TREASURER
SHADOW ASSISTANT MINISTER FOR THE COST OF LIVING
LIBERAL SENATOR FOR WESTERN AUSTRALIA
22 May 2026
LABOR’S ZERO MINING INVESTMENT OUTLOOK A WARNING SIGN FOR WESTERN AUSTRALIAN JOBS
Mining investment forecasts are heading in the wrong direction under Labor— and Western Australia cannot afford the consequences.
Analysis commissioned by Western Australian Liberal Senator Dean Smith from the Parliamentary Library shows a mining investment forecasts have progressively weakened under successive Labor Budgets, with Treasury now forecasting 0.5 per cent growth in 2025–26, 1 per cent in 2026–27, and zero growth in 2027–28.
This stands in stark contrast to stronger investment expectations seen in earlier budgets and reinforces growing concerns across the resources sector about uncertainty, rising costs and Australia’s deteriorating investment competitiveness.
Western Australia’s mining and resources sector directly employs more than 130,000 people, sustains regional communities, contractors, manufacturers and engineering firms, and underpins billions of dollars in exports, taxation revenue and economic activity.
The Parliamentary Library analysis shows the sector is increasingly focused on maintaining existing production rather than committing to major new investment.
At the same time, industry warnings about Australia’s investment competitiveness are growing.
Last year, the Association of Mining and Exploration Companies (AMEC) warned Australia’s international investment attractiveness had suffered a significant blow, with no Australian jurisdiction appearing in the Fraser Institute’s Top 10 mining investment destinations for the first time in living memory.
Western Australia fell from 4th to 17th in the rankings, with AMEC pointing to approvals delays, land access issues and growing regulatory uncertainty.
These pressures and increasingly being reflected across the sector.
Over the past year, major mining companies, including Rio Tinto, BHP, Iluka, South 32 and others have announced restructures, redundancies or cost cutting measures affecting WA jobs.
At a time of weakening investment forecasts and fierce global competition for capital, Western Australia must remain an attractive place to invest – and protect its fair GST share.
Comments attributable to Senator Dean Smith
“The Parliamentary Library analysis shows mining investment forecasts weakening Labor, falling to zero growth by 2027–28.”
“Mining is the engine room of the Western Australian economy and when investment slows, jobs, regional communities and small businesses feel the impact.
Labor continues to rely on mining revenue while uncertainty, rising costs and approvals delays make Australia less competitive for investment.”
AMEC’s warning last year was clear – Australia is slipping in the global race for mining investment, and Western Australia cannot afford complacency.”
“Now more than ever. We must back investment, strengthen competitiveness and protect WA’s fair GST share.”