Winners and losers hammered out in NSW budget

NSW Treasurer Daniel Mookhey has handed down a $128 billion 2025/26 state budget aimed at easing cost-of-living pressures, boosting housing supply and supporting essential workers, while charting a cautious path back to surplus.

“Investment in our essential services is up, debt is down, and NSW is back on the path toward surplus,” Mookhey said.

The budget forecasts a $3.4 billion deficit for 2025/26, shrinking to $1.1 billion in 2026/27 before moving into modest surpluses. Net debt sits at $120 billion.

Cost-of-living help includes an Australian-first $1 billion pre-sale guarantee to help developers get housing projects off the ground, aiming to guarantee 5000 homes and support construction of 15,000 more.

A record $1.2 billion child protection package will lift foster carer allowances for the first time in decades, fund more caseworkers and expand care options for kids with complex needs.

Workers, apprentices and students are also winners, with real wages tipped to grow slightly, an extra $40.2 million for up to 90,000 fee-free apprenticeships, and billions more for schools and education infrastructure.

Sydney drivers, dodgy officials and feral pigs are among the losers — with no extension of the toll cap, a 20 per cent boost to watchdog budgets and $9.3 million for pest control.

In the Northern Rivers, the budget locks in millions for disaster recovery and essential services.

More than $359 million will complete the Resilient Homes Program and $63 million will finish the Resilient Lands Program to help residents rebuild from the 2022 floods.

Lismore and Mullumbimby ambulance stations will get upgrades worth $13 million and $3.4 million, alongside a new $7 million Goonellabah Fire Station and an $8.2 million Byron Bay Fire Station. Lismore Courthouse will receive $1.8 million for resilience improvements.

Schools at Casino, Lennox Head and Wollongbar will share in upgrades, including a new preschool and the continued relocation of Lennox Head Public School. The teacher vacancy rate across the North Coast has dropped nearly 73 per cent since the 2022 shortage peak.

Transport spending includes an extra $3.9 million to upgrade the Bruxner Highway and Alphadale Road intersection, bringing the total commitment to $11.4 million.

Member for Lismore Janelle Saffin said she was pleased to see the upgrade fully funded.

“I’ve fought for this safety upgrade for a long time and secured a $7.5-million election commitment in 2023. I’m glad to see the project receive all the funding it needs to get delivered,” Saffin said.

The budget also sets aside $2.5 million to investigate water security options for the Far North Coast and includes measures to stop the spread of fire ants from Queensland. A $30 million investment will deliver 50 build-to-rent apartments in East Lismore.

WINNERS:

* Workers – real wages forecast to grow 0.6 per cent a year after declining 0.1 per cent a year since 2020

* Foster carers – an immediate 20 per cent boost in allowances

* Property developers – Australian-first pre-sale guarantee supporting $1 billion of projects plus $83.4m to speed up planning approvals

* Apprentices – $40.2 million for up to 90,000 fee-free apprenticeships

* School students – $10 billion more for public education over next decade, $9 billion for school infrastructure over four years

* Justice – $856 million to better support victims, prosecute child abuse claims faster and boost domestic violence services

LOSERS:

* Sydney drivers – no extension of $60 weekly toll ‘cap’ while revenue from government-owned toll roads nearly doubles over four years once the Western Harbour Tunnel opens.

* Feral animals – $9.3 million for pig and deer culling program that has killed 230,000 animals over two years

* Service NSW – the shopfront for government services faces a $70.8 million budget cut including to capital works

* Dodgy officials – corruption and police watchdogs’ budgets boosted by nearly 20 per cent

 

— WITH AAP

First published: June 24, 2025 at 1:05pm
Updated: June 24, 2025, 3:45pm