NSW state budget housing plan ‘potential' planning for a new metro between Tallawong and St Marys
NSW is on track to a budget surplus in the next three years with the Minns government spruiking its 'responsible' spending as the state charts a path out of the red.
This year's budget has projected balance sheets will reach a $1.1bn surplus in 2027-28.
The surplus would be the first since 2018-19, with the deficit for this financial year growing to $5.7bn.
However, gross debt will take longer to wrangle with debts expected to peak at $199bn in 2028-29 compared to the $178.8bn forecast for June next year.
Treasurer Daniel Mookhey and Finance Minister Courtney Houssos speaking to media at the state budget lockup. Picture: Rohan Kelly
The deteriorating public workers compensation scheme has dealt the budget its biggest blow with a $2.6bn hit due to increasing insurance expenses, posing the greatest threat to the future budget surplus.
Housing
· The biggest announcement out of this year's budget is the government's commitment to guarantee pre-sales for up to $1bn of approved housing projects to fast track 5000 homes.
· $83.4m will be set aside to accelerate planning approvals stuck in the slugging development process, including large-scale market, social and affordable housing projects.
The NSW Government announced plans in their 2025 to fast track 5000 homes. Picture: Gaye Gerard
Social services
· The other major announcement from this year's budget is the commitment of $1.2bn to a landmark child protection package to re-build the out-of-home care system, including 191.5m to recruit more than 200 new case workers and retain a further 2126.
· Foster care workers will also receive the first increase to their allowances in two decades, with the government committing $143.9m to increase pay by 20 per cent.
· A further $49.2m will go towards building and upgrading 44 government-owned care homes for children aged 12 and above with complex needs.
Health
· $3.3bn will be committed to upgrade public health infrastructure as part of a $12.4bn spend in the next four years, including an $836.4m Essential Services Package to build and upgrade hospitals including the Sydney Children's Hospital at Randwick and Westmead.
The 2025 state budget has announced upgrades to the Sydney Children's Hospital at Randwick and Westmead (pictured above). Picture: John Appleyard
· In a sign the government is making way for its workers compensation reforms, the Minns government has set aside a $344m package to restore the independence of SafeWork NSW to better support injured workers from harm, including psychological harms.
Transport
· Commuters hoping for big Metro announcements have been left wanting with just $40m allocated this year to develop a business case for a 'potential' future rail connection between Tallawong and St Marys to link the North West Metro to the new Western Sydney Airport line.
$40m has been allocated to develop a business plan for a 'potential' future rail connection between Tallawong and St Mary's to link the North West Metro. Picture: Richard Dobson
· $369.9m to maintain and increase bus services across Western Sydney amid the Metro construction, including $313.8m for new bus services to connect Liverpool, Penrith and Campbelltown to the Western Sydney International Airport and Bradfield City Centre, based on funding from the NSW and Australian governments.
· A total $5.5bn has also been committed to Western Sydney road projects.
· There will be no extension to the toll cap, but the government has committed $9.4m to ongoing toll reform.
Tourism and Sports
· $586m will go towards tourism, film, screen, games and other artistic industries to boost the 'creative economy'.
· A measly $3.5m will be allocated next financial year to develop plans for the halving of Moore Park Golf Course to create a 20-hectare public park and community sports facilities. The government has committed $50 million for the project in total.
Treasurer Daniel Mookhey (middle) and Finance Minister Courtney Houssos (top right) arrive at the 2025 NSW budget media conference. Picture: Rohan Kelly
Education
· The Minns government will invest $9bn in the next four years to build and upgrade schools across the state, including $3.9bn to western Sydney schools.
· An additional $50m will go towards establishing new gifted and talented student programs to create 'opportunity classes' for the state's most promising young minds.
The Bush
· $358.3m commitment to disaster recovery and relief measures for the May 2025 east coast floods
· Vital hospital upgrades across regional NSW will receive $3.5bn including $220m for the future expansion and redevelopment of Wollongong Hospital and Health Precinct, $23.1m for the Dubbo Rehabilitation Centre and $20.2m for the Forbes Hospital Operating Theatre redevelopment.
Flooded Wilsons River in Lismore on March 8, 2025 after former category two Tropical Cyclone Alfred generated heavy rain in the region. Picture: David Gray
· Only $39m will be committed this year towards disaster recovery and relief for communities affected by Tropical Cyclone Alfred.
· A further $158.8m will deliver three new regional helicopter bases at Port Macquarie, Moruya and Wagga Wagga to boost regional healthcare.
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