Winners and Losers Of The 2025 NSW Budget

The NSW Budget 2025-26 has delivered a mixed bag of outcomes across sectors, revealing clear priorities in housing, education, and cultural investment. While some communities welcome major wins, others were left disappointed by funding shortfall and policy shifts.

Budget winners

Housing and Strata Communities

Housing took centre stage in the NSW Budget, with a commitment to deliver 377,000 new homes by 2029. The Strata Community Association (NSW) welcomed the focus on density and infrastructure, noting that over half of new homes will be strata-titled.

“Our sector is not a side note—it is central to achieving the government’s housing targets,” said SCA NSW President Robert Anderson.

The Budget signals growing recognition of strata as a community model requiring tailored planning, streamlined approvals and stronger governance to support liveable, high-density neighbourhoods for a growing population.

Vulnerable children  

Vulnerable children emerged as key winners in the NSW Budget, with a record $1.2 billion Child Protection Package set to reform the out-of-home care (OOHC) system.

Advocate Zoë Robinson welcomed the move, saying, “This investment is a testament to the bravery of children who shared their stories.”

The package includes foster carer support, caseworker recruitment, and reformed care programs.

“The Special Inquiry showed real reform is not just possible in the future, but possible now,” Robinson added. For the first time in over 20 years, no children are staying in motels or unaccredited care settings.

Vocational Education

TAFE received a major boost in the NSW Budget, with $325 million committed to rebuilding its workforce and restoring stability after years of casualisation.

“To have a flourishing vocational education system, you need a stable workforce of teachers,” said NSW Teachers Federation President Henry Rajendra.

The investment will convert staff to permanent positions and support over 23,000 new apprentices and 4,800 existing workers in construction over two years.

“Investing in skills delivers a powerful return,” Rajendra added.

The move builds on previous efforts, making more than 3,000 TAFE teachers permanent and reinforcing the state’s long-term skills pipeline.

Western Sydney

Western Sydney emerged a clear winner in the 2025–26 NSW Budget, with major funding commitments supporting the region’s rapid growth ahead of the Western Sydney International Airport opening in 2026.

“The Airport is coming – and so are tens of thousands of workers and residents,” said Ross Grove, Western Sydney Regional Director of the Property Council.

The Budget delivers $123.6 million for Aerotropolis roadworks and $644 million for stormwater infrastructure.

“This Budget provides connectivity to meet the immediate needs of the region,” Grove added, highlighting its role in unlocking development, housing supply, and long-term economic opportunity.

Arts and Culture

NSW’s cultural sector received a major boost, with over $380 million allocated to the screen industry, including $280.6 million for the Made In NSW program and a 10% rebate for post-production work.

A $100 million capital fund will support planning for a second Sydney film studio, while Sound NSW will receive $20 million to advance its 10-year Contemporary Music Strategy.

Additional funding will support the state’s nightlife, festivals and regional tourism through Destination NSW and the Office of the 24-Hour Economy, positioning arts and culture as central to economic and social revival.

Budget Losers

Nature and Wildlife

Nature was left behind in the NSW Budget, with environmental spending falling to just 1.58%—below the long-term average.

“What we’ve been given today is a big zero on new spending on the Great Koala National Park,” said Jacqui Mumford, CEO of Nature Conservation Council NSW.

While $4.2 billion was allocated for disaster relief, Mumford noted, “We can no longer afford to keep running nature at a deficit.”

Despite rising climate threats, the budget offers little investment in biodiversity or ecosystem restoration, prompting calls to “put nature spending back on the priority list.”

Mental Health

Despite growing need, community-managed mental health services were largely overlooked in the NSW Budget.

“We have yet to see the Government’s commitments realised in meaningful terms,” said MHCC CEO Dr Evelyne Tadros.

While billions were allocated to infrastructure, critical psychosocial supports remain underfunded, leaving over 166,000 people without access.

“Let’s stop consulting and use the evidence we already have,” she urged.

Proven, cost-effective community programs were ignored, raising concerns about the Government’s long-term commitment to mental health recovery outside hospital settings.

Small Business

Small businesses saw limited relief in the NSW Budget, with no major action on soaring workers’ compensation or payroll tax.

“There are dark clouds on the horizon for business,” said Business NSW CEO Daniel Hunter, pointing to rising costs and economic uncertainty.

While measures like the $150 electricity rebate and TAFE investment were welcomed, Hunter warned that 52,000 businesses remain burdened by payroll tax, discouraging hiring and growth. The budget focuses on long-term innovation and infrastructure, but many small businesses were left waiting for urgent cost-of-doing-business reforms.

Golfers

The NSW Budget dealt a blow to Sydney’s golfing community, with $50 million allocated to halve Moore Park Golf Club and convert nine holes into public parkland.

Despite attracting over 90,000 rounds annually, the course will be reduced to accommodate new green space for surrounding high-density suburbs. Golf organisations have pushed back, proposing an alternative plan that maintains 18 holes while adding youth recreation and amenities.

Critics argue the decision disregards golf’s growing popularity and removes one of the city’s most accessible inner-city courses, with completion of the park redevelopment expected by 2028.