Western Australia The capital of Western Australia is Perth. A city of about 1.5 million people. It was established in 1829. Situated on the banks of the Swan River, Perth is a modern and progressive and city. It was also recently rated the fifth most livable city in the world. Western Australia has the earliest known contact of Aborigines with Europeans. In 1616 the Dutch explorer Dirk Hartog landed at what is now Cape Inscription. 2013 State Election: Liberals 31 (+7) Labour 21 (-5) Country 7 (+1) Independents 0 (-3) Mr Colin Barnett remained Premier.