NSW Delivers a “Boring” Budget

The 2025–26 NSW Budget, unveiled by Treasurer Daniel Mookhey on 24 June 2025, is being described as deliberately “boring” — a sign of fiscal discipline rather than a lack of vision.

Key points:

Focused on “slow and steady” recovery, Mookhey has reduced expense growth to 2.4% — down sharply from 6.2% under the previous government.

“It may not grab headlines,” Mookhey told reporters, “but it sets a path back to surplus by 2027‑28.”

Deficit halved, surplus in sight

The Budget forecasts a $5.7 billion deficit for 2024–25 — down from $10.7 billion the previous year — with a return to projected surplus of $1.1 billion by 2027–28.

“Our deficit has been cut in half,” Mookhey said, “while still funding key services.”

Homes for NSW: housing support at the centre

Housing is the Budget’s centrepiece:

A $1 billion Pre‑Sale Finance Guarantee aims to fast‑track the delivery of 15,000 homes across NSW.

“This is Australia‑first,” Mookhey said, “supporting mid‑level builders, unlocking new homes.”

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The Budget extends a 50% land tax concession for build‑to‑rent projects indefinitely, a boost welcomed by Planning Minister Paul Scully.

“It gives investors certainty and renters more choice,” Scully said.

A $122 million works‑in‑kind scheme will encourage developers to build infrastructure alongside new homes.

The Budget “sets a path back to surplus by 2027‑28” said Treasurer Daniel Mookey.

Protecting children and foster carers

The NSW Budget boosts the child protection budget by $1.2 billion, including an $800 million package for out‑of‑home care, pay rises for 2,000 caseworkers, and a 20% increase in foster‑care allowance.

“We’re supporting vulnerable young people,” Mookhey stated, adding that “caseworkers will be better remunerated and better supported.”

Infrastructure: health, education, Western Sydney

Significant infrastructure outlays include:

$12.4 billion for health infrastructure

$10.4 billion for schools and TAFE — $5.6 billion for TAFE alone — aiming to train an additional 23,000 tradespeople

Focused investment in Western Sydney: $10.8 billion for Metro West, $5.5 billion in roads, and school upgrades

Housing is the budget’s centrepiece.

Essential services get a boost

Key public service sectors see renewed funding:

Police and public servants receive a $2 billion uplift in annual pay via wage deals

Digital upgrades (e.g. cyber security for police) and emergency‑services vehicle replacements are funded

Child protection and victim support receive critical funding: $227 million for victim services, $1.2 billion for child protection

Greater accountability: performance and wellbeing framework

For the first time, NSW introduces a Performance and Wellbeing Framework, setting community-informed metrics to track government effectiveness.

Mookhey said the initiative aims to keep the public informed “with clear, outcomes-based accountability.”

For NSW families, this Budget offers some quiet but meaningful relief.

What it means for families

For NSW families, this Budget offers some quiet but meaningful relief.

The focus on housing may help ease the pressure on young families struggling to enter the property market.

The new $1 billion finance guarantee and ongoing build‑to‑rent incentives are designed to increase housing supply, which could eventually lower costs.

While these won’t deliver overnight results, they’re a signal of long-term intent to support family stability through more affordable homes.

The $10.4 billion investment in schools and TAFE means more local education options for growing families, and a stronger path into trades for teens and young adults.

“It’s about putting people first, not punchy headlines.”

“We’re equipping the next generation with real-world skills in real time,” Ben Franklin, Minister for Education and Early Learning said.

For families in the care system — whether fostering, navigating child protection, or living through trauma — the extra $1.2 billion into child safety and caseworker support is especially welcome.

“Foster carers will see a 20% increase in support,” Mookhey confirmed, acknowledging the burden many carry quietly.

Although there’s little direct cost-of-living relief in this Budget, targeted investment in services may ease longer-term family stress.

This Budget may not grab headlines with flamboyant spending, but its measured steps — halving the deficit, building essential homes, and supporting vulnerable communities — promise long‑term stability.

As Mookhey said, “It’s about putting people first, not punchy headlines.”

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