Developers Benefit from Housing Incentives
Property developers received significant backing in the NSW 2025 state budget. The government committed $1 billion to guarantee developer home sales if buyers pull out. This measure targets small developers seeking help with pre-sales to start construction without delay. The policy could support the creation of 5,000 homes across five years if buyers complete purchases.
Developers may now choose to build required infrastructure like roads and parks instead of paying a $12,000 per-lot levy. In another boost, the 50% land tax discount for build-to-rent projects becomes permanent, previously set to expire in 2039.
School Investments and Transport Improvements
Outer Sydney and regional NSW schools will see expanded funding. Four new schools in Emerald Hills, Grantham Farm, West Dapto and Wilton will serve 2,500 students. Nine more schools will receive major upgrades.
Thirteen public schools will split $50 million for libraries, labs and design workshops targeting gifted students. The government will also provide $2 million to expand career fairs and trade work experience programs.
School transport gets a $150 million boost. This includes $26 million to purchase new buses and expand services in outer suburbs and regional areas.
Tafe and Trades Receive Additional Support
Aspiring tradespeople will benefit from 23,000 new fee-free apprenticeships and traineeships. This $40.2 million initiative over two years aims to ease skill shortages.
Another 4,800 workers with unrecognised qualifications will enter residential construction. This includes support for formalising skills and pursuing specialisation. These initiatives form part of a $300 million investment in Tafe.
The funding will also support campus repairs, transition of casual teachers to permanent roles and relocating Bankstown Tafe to enable a hospital project. The hospital build has increased in cost by $700 million.
Foster Care System Sees $1 Billion Boost
Children in out-of-home care gain attention in the budget. Foster carers’ allowances will increase by 20%. For a 14-year-old child, payments will rise to $1,056 per fortnight, up from $880.
The government will allocate $191.5 million to hire 200 new caseworkers. NSW’s foster care system supports 17,000 children. The number of carer households dropped to 12,500, requiring greater NGO involvement.
Tourism Infrastructure Targets Western Sydney
Visitors to Western Sydney’s new airport precinct will benefit from improved signage and roads. The government will install 1,000 new green direction signs across the city.
A further $50 million will go toward road upgrades, $40 million for new route planning, and $30 million for a traffic incident management centre. These additions will push the total airport project funding above $2.7 billion.
Law Enforcement Gains Resources
NSW Police will receive a new $46.3 million vessel named Nemesis for extended offshore operations. An extra $6 million will help law enforcement upgrade communication and analysis systems. Police also received one of the largest recent public sector pay increases.
Households Miss Out on Support
No new cost-of-living relief was introduced in the budget. Labor’s toll relief, which reimburses motorists beyond $60 weekly, will end by 2025. Last year’s payroll tax cut to support bulk-billing doctors remains but without expansion.
Premier Chris Minns committed $15.4 million to create a NSW Motorways body to address toll reform. However, policy details remain pending.
Commonwealth Bank reports NSW households have reduced spending since late 2022. NSW now has the second-lowest per-person household expenditure among all states.
Also Read: Virgin Australia Rejoins ASX With Strong Gains After $439m IPO
Injured Workers Face Cuts to Compensation
Workers’ compensation schemes continue to pressure the state budget. Expenses have increased by nearly $900 million since 2024 and are expected to grow further. Treasurer Daniel Mookhey attributes this largely to compensation payments.
Proposed cuts stalled in Parliament, but the government views the scheme as a greater budget threat than natural disasters. Spending on natural disasters has risen over 1,000% since 2019 compared to the previous six years.
Koala Protection Sees No Funding Increase
The NSW government allocated no new funds for the “great koala national park” project. Planning work remains supported by the previous $80 million investment.
Despite pledges, more than 10,000 football fields of forest have been cleared within the proposed park’s footprint. Environmental groups have called for the entire 176,000-hectare site to receive urgent protection. The government continues to develop a forest industry action plan without committing to additional funding.
Summary
The NSW budget 2025 prioritises housing construction, education, policing and infrastructure development. However, support fades for households, injured workers and conservation projects. While developers and students gain, koalas and workers continue to face uncertainty.
