June 24, 2025
NSW Budget 2025-26: Key Portfolio Measures

🏥Health

In 2025-26, funding will support reforms to out-of-home care (OOHC) and child protection, expand services for victim survivors and strengthen justice and community safety. Targeted investment will also support First Nations communities through infrastructure, culturally responsive services and language revitalisation programs.

In 2025-26, key measures include:

  • $836.4 million in 2025-26 for the Essential Health Services package, supporting core services, reducing overdue surgeries, opening new and upgraded hospitals and progressing the Statewide Mental Health Infrastructure Program.
  • $700 million in additional funding for the construction of the new Bankstown Hospital, bringing the total investment to $2 billion.
  • $669.8 million towards the Statewide Mental Health Infrastructure Program. This will fund child, adolescent and older persons services, forensic services and recovery facilities. 
  • $492 million to develop a statewide Pathology Hub on the Westmead Campus.
  • $344 million to support injured workers, this includes restoring the independence of SafeWork NSW.
  • $210 million (including the $120 million committed by the Federal Government) to provide the full range of birthing and maternity services at the new Rouse Hill Hospital. 
  • $83.8 million to grow and upskill the maternity workforce and increase continuity of midwifery care and parenting support in regional areas.

🎓 Education

 Investment in education and skills totals $11 billion over the next four years, with funding focused on expanding TAFE NSW and training programs to help address housing and workforce challenges across the State. The Government will also invest in improving school infrastructure and facilities to support better student outcomes and respond to teacher shortages.

In 2025-26, key measures include:

  • $2.8 billion for TAFE and Skills to upgrade facilities, secure teaching staff, and support strategic campus relocations. 
  • $1.2 billion for TAFE to accelerate the delivery of trades training, including $40.2 million to continue fee free apprenticeships and traineeships for priority qualifications.
  • $480.4 million over four years for TAFE asset renewal and critical capital maintenance, including $100 million to relocate Bankstown TAFE. 
  • $13.8 million for the Construction Workforce Package to upskill 4,800 residential construction workers. 
  • $10.4 billion over the next 10 years to reflect the Better and Fairer Schools agreement, with $5.6 billion from the NSW Government and $4.8 billion from the Australian Government.
  • $9 billion over four years for school infrastructure, including $2.6 billion in the next financial year to deliver new and upgraded schools.
  • $411 million for public school students, bringing the total spend to $17,022 per student this calendar year.
  • $200.9 million to increase First Nations access, enrolment and attendance in early childhood education.

🛣️ Transport and Roads

Funding for the state’s road and transport network has reduced by $10.5 billion to $70 billion over the forward estimates. Investment will prioritise the Sydney Metro and upgrades to Sydney’s bus fleet. Road upgrades in Western Sydney are also a focus, supporting the Western Sydney Airport and surrounding suburbs. Additionally, funding has been set aside for NSW Motorways, the state’s new agency responsible for delivering toll reform.

In 2025-26, key measures include:

  • $10.8 billion over four years to continue work on the Sydney Metro West line.
  • $3.6 billion over the forward estimates to deliver the Western Sydney Airport Metro line.
  • $2.4 billion for new and upgraded roads, including $1 billion for upgrades to Fifteenth Avenue between Liverpool and Western Sydney Airport.
  • $2.1 billion over four years to continue the delivery of zero emissions public transport buses.
  • $801.4 million over four years to deliver the final stage of the Metro City and Southwest line between Sydenham and Bankstown.
  • $731.7 million in 2025-26 for road safety upgrades, including line markings, school safety infrastructure, and crash barriers.
  • $522.2 million for the public transport network, including $369.9 million to improve bus, train, and metro connections.
  • $501.1 million over four years for extension works to the M6 Stage 1 road project.
  • $123.6 million for access road and safety upgrades in the Western Sydney Aerotropolis.
  • $58 million to establish and operate NSW Motorways and continue toll reform.

🏠 Housing, Planning, and Natural Disasters

In response to calls for increased housing supply, the Government has announced a Pre-Sale Finance Guarantee to accelerate project approvals and boost housing delivery. The Budget also includes continued investment in disaster and emergency response services, reflecting the increased frequency of severe weather events and the need to prepare for future climate-related disasters.

In 2025-26, key measures include:

  • $4.1 billion over the forward estimates to deliver social housing programs, including $358.9 million allocated to the Aboriginal Housing Office. 
  • $1 billion over five years towards the Pre-Sale Finance Guarantee to promote the approval of housing projects, on a rolling basis. 
  • $358.3 million towards disaster recovery and relief measures in response to the May 2025 East Coast floods, in partnership with the Federal Government. 
  • $145 million to support the NSW Building Commission in implementing its building and construction reform agenda. 
  •  $83.4 million to fast-track planning approvals for major market, social, and affordable housing developments, including $10.6 million for the new Housing Delivery Authority. 
  • $42.2 million for the establishment of a 24-hour new fire station in Badgerys Creek, providing fire and rescue resources for the Western Sydney International Airport and the broader Aerotropolis precinct 
  • $35.9 million for the continued operation of Fire and Rescue NSW to support the delivery of essential disaster response services. 
  • $33.9 million towards the Public Safety Network, enabling it to deliver critical communications services for Emergency Services Organisations, government agencies, and local councils. 
  • An extension to land tax concessions for new build-to-rent developments.

🌱 Regions, Energy, and Environment

Investment in the climate, energy, environment and water portfolio totals $1.7 billion in 2025-26 and $4.2 billion over four years. Funding will support the ongoing transition to renewable energy, including programs such as the Transmission Acceleration Facility and Renewable Energy Zones (REZs). Biosecurity is also a focus, with new investment in detection, response and oversight.

In 2025-26, key measures include:

  • $498.5 million over four years to support the delivery and construction of the Central West Orana REZ.
  • $115.5 million over four years for a new logistics precinct at the former Newcastle BHP steelworks, to support the temporary storage for wind turbine and transformer components.
  • $100 million to develop an improved detection, protection and response biosecurity model, and includes the appointment of the state’s first Independent Biosecurity Commissioner.
  • $45 million to improve on-farm connectivity and support the adoption of digital technology.
  • $41.2 million for primary industries research and development, including digital infrastructure to promote research in AI-assisted farming, and a graduate program for young scientists in the agriculture industry.
  • $41.3 million to reduce natural disaster vulnerability in national parks.
  • $27.3 million over four years to establish the Future Jobs and Investment Authority, tasked with guiding economic development in NSW’s four coal mining regions: the Hunter, Central West, Illawarra and North West.

⚖️ Making Communities Stronger and Fairer

The Government continues to provide cost of living relief to vulnerable households through extensions to the Power Saving Bonus and appliance electrification rebate programs. It will also advance renewable gas initiatives, plan for Victoria’s offshore wind sector, and strengthen the Environmental Protection Authority (EPA) through increases to the Municipal and Industrial Waste Levy. Expenditure in the Department of Energy, Environment and Climate Action in 2025–26 includes:

Key measures

  • $1.2 billion child protection package to strengthen the OOHC system and improve outcomes for vulnerable children, including $797.6 million to reform OOHC, $191.5 million to recruit more than 200 and retain over 2,000 caseworkers, and $49.2 million to deliver 44 government-owned residential care homes for children with complex needs.
  • Over $650 million to support victim survivors, including counselling , financial aid, and $48.3 million for the Director of Public Prosecutions to manage increasing case load and complexities.
  • The Closing the Gap package now totals $246.8 million with $202.4 million of new funding included in this budget. This includes funding for community led justice initiatives, shared access to data, and to revitalise First Nations languages through investment in community-led language programs.
  • $116.7 million to upgrade NSW Police ICT systems, cyber security, and digital policing capabilities. 
  • $100.5 million to address rising demand in the corrections system and to sustain Corrective Services NSW supervision and service delivery.
  • $87.7 million to fund Cyber Security NSW’s work with government entities to prevent, detect, and recover from cyber incidents.
  • $46.3 million to replace the Nemesis patrol vessel used for maritime law enforcement.
  • $20 million investment into crisis accommodation to assist with homelessness and support communities.

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