Ratepayers Face $60M Cost for WA Performing Arts Centre Overrun

Rowan Ashford

Published: January 27, 2026 6:47 PM ET

Ratepayers Face $60M Cost for WA Performing Arts Centre Overrun

The cost of constructing the “Saltwater” performing arts centre in Busselton, Western Australia, has surged dramatically. Initially estimated at $21 million in 2019, projections now suggest that the final cost could reach between $60 million and $72 million, including loan expenses. This situation has left local ratepayers responsible for the escalating costs of an incomplete project.

Location and Timeline

Busselton, located 220 kilometers south of Perth, is home to the 600-seat theatre and convention centre. Construction began with a groundbreaking ceremony in February 2022, with hopes for completion by October 2023. However, various complications have caused significant delays.

Financial Concerns and Cost Overruns

A recent report from KPMG indicated that high labor and material costs, along with supply chain issues, have contributed to the budget ballooning. Additionally, legal disputes with contractors and subcontractor insolvencies have complicated matters.

Impacts on Local Community

Ratepayers may see an increase in costs upwards of $60 million.
The theatre school owner, Terry Thompson, highlighted “enormous overshooting” of costs.
Local theatre groups are experiencing frustration due to lack of a performance space.

According to Thompson, the project is expected to generate significant annual revenue for the Capes Region, estimated at around $6.6 million mainly through tourism once completed. However, concerns linger about the financial burden on the local community.

Community Reactions

Busselton resident Michelle Shackelton expressed her dissatisfaction with the rising costs. She stated that many families in the area are already under financial strain and are concerned about increased rates to cover the project expenses. Shackelton noted, “We wanted it, but we didn’t want to pay 30, 40, 50 percent more.”

Additionally, another local, Keith Sims, echoed similar sentiments, emphasizing that the project funding is being drawn from reserves and incurred debts, which could lead to a loss of nearly $1 million in the first operational year.

Future Outlook

Despite the challenges faced, Terry Thompson remains hopeful about the centre’s eventual opening. He believes it will serve as a vital resource for local productions and performances. However, the timeline for the project’s completion remains uncertain, and residents are awaiting updates from the City of Busselton on the way forward.

The upcoming council meeting will formally address the KPMG report and its implications for the future of the Busseton performing arts centre. Local residents are anxious for transparency regarding financial responsibilities moving forward.