2025 NSW budget thin on cost-of-living relief amid growing global uncertainty
NSW residents struggling with cost-of-living pressures have been left disappointed, as the 2025 state budget offers no new relief.
Treasurer Daniel Mookhey unveiled the $128 billion 2025-2026 state budget on Tuesday, focusing on housing, essential workers, and protecting vulnerable communities.
Mookhey reported a $5.7 billion deficit for 2024-25, with a forecast deficit of $3.4 billion for the 2025-2026 financial year.
He acknowledged that 'a lot needs to go right' to return the state to surplus but said the finances were improving.
The budget papers highlight growing uncertainty from unpredictable global policies that could weigh on the Australian economy, including US President Donald Trump's tariff regime.
These impacts are expected to downgrade NSW's payroll tax revenue by $512.3 million over the four years to 2028-2029.
Other drags on the budget include workers compensation, which the government has been unable to reform before premiums increase on July 1, and natural disasters.
Disaster relief spending has leapt tenfold since the 2019-2020 Black Summer Bushfires, when compared to the six years prior, now costing $1.6 billion annually.
Speaking to 7NEWS on Tuesday, Mookhey expressed concern that water bills could increase.
With the current toll relief scheme set to expire at the end of this year, a few cost-of-living measures will remain to support NSW residents.
Renters
NSW's 2.3 million renters continue to benefit from fee-free rent payment options, a ban on upfront tenancy fees, limits on rent increases to once per year, and the introduction of Australia's first Portable Rental Bonds Scheme.
First home buyers
Eligible first home buyers in NSW can access stamp duty exemptions on properties under $800,000 and concessions on homes up to $1 million, along with a $10,000 grant for new builds under $600,000 or house-and-land packages under $750,000.
Energy support
The NSW Budget extends the $150 national Energy Bill Relief payment to the end of 2025, delivered in $75 quarterly instalments automatically applied to electricity bills for all households and eligible small businesses, in partnership with the Australian Government.
Education
A range of education support measures are in place, including up to $4347 in preschool fee relief for families with 3-to-5-year-olds, nearly 45,000 fee-free training places for apprentices and trainees, subsidised vocational education for in-demand skills, and additional travel, accommodation, and scholarship support for eligible apprentices facing hardship.
Transport
Beyond the $60 weekly toll cap running until the end of the year, NSW drivers can also benefit from the M5 South-West Cashback Scheme.
The daily to weekly Opal Card travel caps continue to offer savings for commuters.
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