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NSW budget 2025: Treasurer Daniel Mookhey hands down Minns government's third budget
NSW Treasurer Daniel Mookhey has handed down the Minns government's third budget, describing it as a pathway back to surplus.
While announcing a $5.7 billion deficit for 2025-26, Mookhey said the coming year would be one of 'tight spending', with a surplus targeted by 2028-29.
'For most of the last three years, the rising cost of living and higher interest rates have put pressure on households and dragged on economic growth,' he said.
'The challenge is no longer high inflation, but low growth.
'In this Budget, we show that cost of living pressures and interest rates are easing and opportunities for economic growth are emerging.'
Here's how the budget could affect you.
Housing developers and home buyers
The NSW Government is investing $1 billion into the Pre-Sale Guarantee, aimed at helping developers secure finance earlier and speed up construction timelines.
The initiative is expected to fast-track more than 5000 homes over five years and create 1500 jobs.
'We promise to buy anything that's unsold,' the Minister told reporters.
The government is also making the 50 per cent land tax discount for build-to-rent projects permanent, giving long-term certainty to investors and boosting rental supply.
The state will park $145.1 million into the Building Commission for the building regulator to continue to conduct inspections, investigate complex building issues, progress key building reforms and educate the industry.
Child carers
From January 1, 2026, foster carers will receive a 20 per cent increase in their allowance.
A carer of a five-year-old will get an extra $131.20 per fortnight, and that of a 14-year-old, the increase is $176 per fortnight.
The budget includes a record $1.2 billion investment in child protection, marking the largest-ever commitment to reforming the out-of-home care (OOHC) system, which supports children who can't safely live at home.
Hospitals and healthcare
The Minns Government is committing $12.4 billion to health infrastructure over the next four years.
Key investments include $910 million for Western Sydney's first new hospital in 40 years at Rouse Hill, $700 million for the construction of the new Bankstown Hospital, and $492 million to build a state-of-the-art pathology hub at the Westmead Health Precinct, replacing a facility built more than 50 years ago.
Commuters using public transport
The NSW Government is committing $522.2 million to improve public transport across the state, including $82.3 million to deliver 75 new buses.
It will allocate $70 million to enhance transport access to the new Sydney Fish Market, with $30 million to build a scenic ferry wharf on Blackwattle Bay, and $40 million to upgrade the nearby Wentworth Park light rail stop with new lifts, ramps, and improved safety features.
Regional residents
Residents in the Riverina Murray region will benefit from $206 million in road upgrades, while the Illawarra-Shoalhaven region is set to receive $680.5 million to continue works on the Princes Highway.
Small businesses and startups
The government is pouring nearly $80 million into its Innovation Blueprint to give emerging tech companies more financial and structural support.
Another $17.7 million will go towards setting up the Investment Delivery Authority, which is designed to make it easier and faster for major projects to get off the ground in NSW.
