Cashed-up WA to post another big budget surplus

Economist Alan Duncan says WA's growth had been stronger than other jurisdictions but "headwinds" have taken some polish off the state's strong economic performance.

These include high prices and the lack of available housing, along with workforce, infrastructure and supply constraints.

"We have been resilient beyond other states ... but I do think that it also creates some challenges," the Bankwest Curtin Economics Centre director told AAP.

"Constraints may prevent us from maxing out on our productive capacity."

Despite this, Professor Duncan said WA remained in an "enviable" economic position that would allow the government to continue developing the economy and infrastructure while providing relief for the housing crisis and cost-of-living pressures.

The government has already announced billions of dollars in new spending, including cash to improve the health system and ease the housing shortage and cost of living stress.

Ms Saffioti on Wednesday flagged more spending to help families, along with housing initiatives and investment in the health sector but was giving little away.

Treasurer Rita Saffioti is expected to forecast another big surplus for WA in Thursday's budget. (Richard Wainwright/AAP PHOTOS)

"This budget will see more support for WA households, continue our massive investment into health and housing and of course, investment in jobs of the future and our efforts to diversify and decarbonise our economy," she said.

Shadow treasurer Neil Thomson said WA was "living through the boom no one feels" and average people hadn't seen the benefits because the government had the wrong priorities.

"We expect more band-aids tomorrow trying to paper over the neglect and disinvestment in services that really matter," he said.

The government on Monday outlined an $843 million spend for social and affordable housing and homelessness initiatives aimed at increasing supply and support across the state.

But Shelter WA, said rents had continued to soar and the housing crisis was worsening, forcing more people into homelessness.

"After five years of record surpluses and a GST windfall, the government must centre this year's budget on housing and homelessness," chief executive Kath Snell said.

WA Council of Social Service chief executive Louise Giolitto said the budget must provide long-term solutions to the skyrocketing cost of living, not just temporary relief. 

More than $100 million has been earmarked in the budget to help families with rising living costs, with payments of $250 for secondary school students and $150 for primary and kindergarten students.

WA's peak business group, the Chamber of Commerce and Industry WA, urged the Cook government to deliver much-needed payroll tax relief to businesses, boost the state's defence industry and address the housing crisis.