West Australian Premier Mark McGowan says the Liberal Party’s willingness to preference Clive Palmer’s United Australia Party shows the Coalition “hasn’t learnt its lesson” about the dangers of dealing with the mining magnate, and is an insult to every Australian.

Mr McGowan also tried to use his state’s budget surplus – tipped to hit $8 billion and fuelled by a booming resources sector – as evidence that Labor was the party of superior economic management.