The 2025 Budget is the third in a trilogy from Treasurer Mookhey – representing a story of budget repair while investing in critical housing delivery and energy transition challenges. 

We commend Treasurer Mookhey’s first three budgets, which articulate a clear objective of solving the long-term challenge of budget repair and essential services – it is all too rare in modern politics for this level of measured consistency. 

Like all good stories, three is enough. For next year, we would expect to see a new narrative emerge for NSW, with some signals in this year’s budget pointing to the likely main character: economic development and growth. 

Meanwhile, some areas that need long-term investment are only background characters and require more focus: climate change adaptation, investment in the next trunk transport corridors, active transport and essential worker housing.  

This budget also saw the first Performance and Wellbeing framework published – but it appears more of an addendum than a guiding light – we will dive into this in coming weeks. 

There are some fantastic announcements in this budget: the housing crisis has every department leaning their shoulder to the wheel, with the starring role given to a $1Bn Pre-Sales Guarantee Scheme enabling getting 5,000+ homes built quicker – an example of government solving a critical market failure, and a Committee for Sydney advocacy win. 

On the economic development front, the Investment Delivery Authority will unlock private sector ideas and capital to deliver for the people of NSW quicker, while $80m for the Innovation Blueprint is welcome – something the Committee’s Innovation District Alliance has advocated strongly for.  

This budget also signals the ‘year of the bus’ with more than $500m invested in expanding bus services – a win for the Committee’s Plan B(uses) report.  

The gaps in this budget are similar to previous years – we need more investment in preparing the state for the impacts of climate change-induced natural disaster and extreme heat. A decision must be made about investing in Sydney Metro extensions beyond Metro West and Metro Western Sydney Airport. Getting people walking and cycling remains less than 0.2% of transport spending – despite being one of the most cost-effective transport investments available. 

With investment needed in key areas to set NSW up for the remainder of this decade, we hope to see a pre-election budget in 2026 that steps up in delivering on these additional long-term challenges facing our city and state. 

Like the end of good movie trilogies, we should take a moment to celebrate the journey we’ve been on. But, we also look forward to what’s next. Let’s make sure the next trilogy tells a long-term story about investing in the future of our state, maybe even be shot at our new film studios. The Committee for Sydney has the popcorn ready. 

Looking at the budget through the lens of the Committee for Sydney’s priorities 

Planning and housing

We know the private sector is facing significant planning, labour and financing challenges when it comes to housing delivery in Sydney. This budget has focused on measures that address all three, with measures like the $1billion pre-sales guarantee, extending measures like the BTR tax incentives that we know are needed, investing more in boosting the construction labour force, while fixing some developer contributions kinks in the system to smooth out delivery.  

An idea floated in last year’s budget has much more oomph behind it this year, with $1 billion allocated to guaranteeing pre-sales of approved housing projects on a rolling basis, allowing developers to secure finance earlier and commence construction more quickly. It’s estimated to fast track more than 5,000 homes. We hope government support is focused on stimulating more housing diversity in the market – funding projects that include affordable housing, and more family-friendly apartments that are known to be popular, in-demand products, but more difficult to sell off-the-plan.  

The move to smooth out the ‘works-in-kind’ developer contributions process is a smart, overdue step to accelerate infrastructure delivery. As the Premier rightly put it, “You can’t build new homes without roads, parks and schools to match, and the community shouldn’t have to wait for them.” This principle is at the heart of doing density well. However, if we’re serious about aligning infrastructure with growth, we need to see more investment in schools, particularly in high-growth areas like the Bella Vista and Kellyville TODs. These communities are growing rapidly, but new schools where growth is forecast to be high are still missing from the pipeline. 

Announcements include:

• $1 billion pre-sales guarantee, allowing developers to secure finance earlier and commence construction more quickly    
• $3.4 billion investment in TAFE and skills to tackle the housing crisis, including 23,000 fee-free construction apprenticeships and a $13.8 million Construction Workforce Package to upskill 4,800 workers and support school-to-trade pathways 
• $2.7 billion housing and infrastructure package includes extending build-to-rent tax concessions indefinitely and releasing new works-in-kind guidelines to accelerate housing delivery and ensure new homes are supported by essential infrastructure 
• A new homelessness package will have $20 million allocated to expand crisis and transitional housing, and an additional $10.4 million over four years for support services through the Rev Bill Crews Foundation. 

Economy 

After years of slow burn, economic development is firmly on the government’s agenda in this budget. Sydney’s innovation engine is getting the injection it needs with the creation of the Investment Delivery Authority and nearly $80 million in new innovation funding. The state budget puts some real economic muscle behind the Innovation Blueprint, backing up ambition with coordination, capital and a pathway to accelerate major projects across sectors like tech, clean energy and advanced manufacturing.  

While cutting red tape is important, it’s only one piece of the productivity puzzle. Real transformation will require a broader economic strategy – one that builds industry capability, lifts workforce skills, supports innovation adoption, and scales up the future-facing sectors where NSW has the potential to lead as detailed in Transforming Sydney’s Economy. 

Announcements include:

• $17.7 million to establish a new Investment Delivery Authority to fast-track major private sector projects across industries, aiming to unlock up to $50 billion in investment annually by streamlining approvals and coordinating infrastructure 
• An additional $80 million innovation package to breathe life into the recently released NSW Innovation Blueprint. This includes: 
  • $38.5 million in funding for the Tech Central Innovation District  
  • $20 million to support emerging technology commercialisation of deep tech 
  • $18 million across three programs to support early stage startups, drive innovation in both manufacturing and housing construction 
  • $4 million to support female founders. 

Climate and resilience 

After an unprecedented (but not unexpected) run of fires, floods and storms over the past 5 years, we welcome the NSW Government setting allocating over $1 billion per year in funding for disaster relief for the next four years. This funding recognises the need to support communities when natural hazard events hit, but also points to the need for new significant funding to reduce natural hazard risk and complement the ongoing NSW Government investment in disaster adaptation planning, community preparedness, strengthening homes and infrastructure, and buying back hazard exposed properties.  

Investing in a resilient drinking water supply is critical for households and businesses in the face of rapid population growth, increased natural hazard events, and the realisation that Sydney is always less than five years from running out of water. $756m for the Prospect Pretreatment Plan is one small step towards enabling the continued supply of safe, secure and reliable drinking water, which needs to be supported by new investment in desalination, purified recycled water and stormwater harvesting. 

The energy transition has received a $2.1 billion funding injection with the Transmission Acceleration Facility continuing to support the establishment of regional Renewable Energy Zones, and $115m to establish a new logistics precinct in Newcastle to support the delivery of renewable energy infrastructure for the state. Despite a projected shortfall in energy generation in 2027, there is a clear urgency for new funding to investigate the potential of urban renewable energy zones like Sydney to provide new generation and storage, and support an equitable approach to the energy transition.  

Announcements include:

• $4.2 billion set aside in the budget for disaster relief over next four years 

• $2.1 billion over four years to be invested through the Transmission Acceleration Facility, which will make funding available for projects and early community and employment benefits related to the regional Renewable Energy Zones (and then recovered from private network operators)

• $115.5 million for a new logistics precinct at the site of the former BHP steelworks in Newcastle, to support the delivery of renewable energy across the state, including storage for wind turbines and transformers

• $756m on Prospect PreTreatment Plan to enable the continued supply of safe, secure and reliable drinking water particularly during events (storms/ floods) that impact the quality of raw water

• $455.3 million over four years for the new Richmond Bridge over the Hawkesbury River between Richmond and North Richmond will increase flood evacuation capacity for local residents.  

Mobility 

It’s the year of the humble bus, the unsung hero workhorse of the transport stable, and we’re thrilled to see key wins from our Plan B: Buses report reflected in the 2025–26 NSW Budget.  

The $452 million investment will expand and improve Sydney’s bus network, including 50 new bendy buses for overcrowded inner-city routes. It also backs our call to align services with housing growth and school demand, boosting coverage in fast-growing suburbs and increasing frequency where it’s needed most. As part of this investment, improved services should be prioritised for communities in the 2770 suburbs, Willmot, Lethbridge Park, Bidwill and Tregear, as highlighted in advocacy from the Mt Druitt community.   

While it’s good to see needed road improvements in Sydney in excess of $12.5 billion, it’s disappointing there is next to no investment in walking and cycling infrastructure. Key projects we were hoping to see – like the missing link of Oxford Street East – are also absent from the budget. We know more roads equals more congestion if people aren’t given more options to walk, bike or catch public transport.   

Announcements include: 

• An additional $452 million to increase the number of bus services, and accelerate the rollout of new bendy buses, while meeting rising costs for local bus operators across NSW

• A joint investment of $156 million with the federal government to accelerate planning and development of critical road upgrades in the booming suburbs of Blacktown, Rooty Hill, Marsden Park, Schofields and Rouse Hill 
• A road user charge for electric vehicle users is built into the budget from mid-2027 – raising $73 million in that year

• $59.8 million refurbishment of one of Sydney’s most iconic and popular walking and cycling bridges, Pyrmont Bridge, to conserve the heritage-listed entry point to the Sydney CBD  

• $70 million investment to connect the new $836 million Sydney Fish Market to the harbour via a new commuter ferry wharf and major upgrades to Wentworth Park light rail stop, improving access for over 6 million annual visitors. 

Culture and sport 

We strongly support the government’s vision for the potential of culture to transform our visitor economy and build stronger communities, but while there are kernels for optimism here with specific targeted investments, the budget does not match that vision.   

The great news is that the budget doubles down on the state’s potential for a competitive edge in screen, sound and digital entertainment – industries that showcase our stories to the world in a show of soft power, and fuel jobs, exports and creative careers. More work is underway for creative workers, and it’s much needed for a workforce hit hard by the post-covid housing and cost of living impact.  

We welcome the commitments to address upgrade and maintenance backlogs at cultural institutions and sports facilities, particularly Olympic era facilities facing serious challenges 25 years on, however, it’s nothing near the scale of investment required to deliver vital new sporting infrastructure across the metropolitan area. 

Of largest concern to the Committee is that most major cultural institutions face large operational funding cuts – with increased expectations around self-funding, likely ticketed shows and commercial event bookings. This will inevitably lead to significant job or program cuts across the cultural sector, and further limit access for communities at a time when cost of living is already biting hard.    

The focus on housing is crucial, but we’re running the risk of delivering much needed housing in a city where you can only participate in sport and creative culture if you can afford it, or live in the right place. 

Announcements include:  

• $380 million to kickstart the search for a second Sydney film studio, provide extended rebates and the Made in NSW fund, supporting a five-year pipeline of locally made films, TV dramas, and digital content that positions NSW as a leader in creative production 

• $14 million to upgrade/maintain key Olympic legacy venues including Sydney Olympic Park, Sydney International Regatta Centre and Penrith Whitewater Stadium. 

Equity and fairness

Prevention is better than cure and while this budget includes some welcome steps to address root causes, like investments in preventative child protection services and mandatory sexual harassment and violence prevention content in RSA training, it misses a major opportunity: pokies reform. 

There’s a continued, large investment in education and health – $10.4 billion and $12.4 billion respectively. Boosting these universal services has been a strong theme of the Minns Government.  

An additional $202 million has been committed to Closing the Gap, critical for Sydney, home to the largest urban population of First Nations people in the state. 

There’s also been a fantastic new commitment to addressing gaps in our child protection system – including over $300 million for family preservation services – keeping kids from falling into foster care unnecessarily.  

However, the government continues to forgo up to $1 billion annually by failing to rein in poker machine tax concessions. Just 5% of clubs claimed nearly $500 million in tax breaks last year, a figure set to grow. 

This isn’t just a lost revenue opportunity. It’s also causing widespread harm to communities. Problem gamblers are up to three times more likely to be involved in domestic violence. Even low-risk gamblers are 160–170% more likely to perpetrate or experience family violence (Dowling et al., 2022). 

This year’s budget is also the debut of the long-awaited Performance and Wellbeing Statement. There are some solid indicators in the mix, and we’re keen to see future budgets do more than just nod at them. Ideally, investments should follow where the wellbeing need is highest. 

Announcements include: 

• $12.4 billion for health services, includingexpanding the scope of Rouse Hill Hospital to include maternity and birthing services
• $10 million to strengthen RSA training with mandatory sexual harassment and violence prevention content for all hospitality staff and licensees, improving safety for the more than 100,000 workers and patrons across NSW venues 
• $202.4 million over the next four years towards Closing the Gap initiatives such as programs to support adults and children leaving custody and prevent reoffending 
• Gender impact assessments remain mandatory for new policies over $10 million, helping ensure budget decisions consider the needs of all groups.