Key facts
- Public transport fares in NSW will remain unchanged for one year.
- Vehicle registration fees will be reduced by $100.
- The weekly road toll cap threshold is lowered to $50.
- NSW is projected to face a $2.3 billion deficit in 2026-27.
- The state government is allocating significant funds to western Sydney for schools and health.
The New South Wales government has unveiled its latest budget, featuring measures aimed at alleviating cost-of-living pressures for residents ahead of the March 2027 state election. Key initiatives include freezing public transport fares on the Opal system for one year and reducing vehicle registration fees by $100. The government is also lowering the threshold for its weekly road toll cap from $60 to $50, allowing drivers to claim back tolls incurred beyond that amount, up to $350 per week.
Treasurer Daniel Mookhey presented the budget as a strategy to create a "state working families can afford," acknowledging the high costs of housing and renting in NSW. The budget anticipates a deficit of $2.3 billion in 2026-27, with a projected rebound to a $1.1 billion surplus the following year, marking the state's first surplus since the pandemic impacted finances. Gross debt is forecast to surpass $200 billion by 2027-28.
The opposition, led by Kellie Sloane and Scott Farlow, criticized the budget for lacking a comprehensive economic growth plan and sufficient tax relief for businesses, despite backing the cost-of-living measures. They argue that the state is heading towards a "per capita recession" with low population and economic growth forecasts.
Significant investment is planned for western Sydney, with approximately $4.1 billion allocated for new schools and upgrades, alongside record spending on health infrastructure. The government also plans to create a new facility for prefabricated and modular homes and has included $1.1 billion in contingency funding for potential future spending, such as the national firearm buy-back program and support for the Tomago aluminium smelter.
