NSW Budget 2025/26: Winners & Losers
- The New south Wales government has revealed its budget for the upcoming financial year, outlining spending and saving plans.
- The budget highlights winners and losers, wiht key announcements impacting various sectors.
- Developers are a major winner, with the introduction of a $1 billion Pre-Sale Finance Guarantee program.
The NSW budget for 2025/26 prioritizes housing, child protection, and health infrastructure, with developers emerging as major beneficiaries thanks to a new finance guarantee program. A $1.2 billion investment boosts the out-of-home care system, and health services are set to receive meaningful funding. However, residents seeking cost-of-living relief may be disappointed. this comprehensive analysis details the winners and losers in the new budget from News Directory 3, unpacking key allocations like the $3.3 billion for health infrastructure and the ongoing Pre-IVF Fertility Testing Rebate. Discover the details on the Pre-Sale Finance Guarantee program and other areas. What’s the potential impact on housing costs and social services? Discover what’s next, from the impacts on Aboriginal families to more.
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NSW Budget Focuses on Housing, Child Protection, and Health
Updated June 24, 2025
The New south Wales government has revealed its budget for the upcoming financial year, outlining spending and saving plans.
The budget highlights winners and losers, wiht key announcements impacting various sectors.
Developers
Developers are a major winner, with the introduction of a $1 billion Pre-Sale Finance Guarantee program. This initiative aims to help developers secure funding for new housing projects.
The state will guarantee up to 50% of pre-sales in approved projects, enabling developers to obtain finance and commence construction.This is expected to increase housing supply and perhaps lower costs.
The government anticipates accepting applications by the end of the year, potentially supporting the construction of up to 15,000 additional dwellings over five years.
Unsold dwellings may be acquired by the government for social or affordable housing.
Private developers may also be allowed to build public roads and parks on their land, subject to state pre-approval, to accelerate infrastructure development in Sydney’s outer suburbs.
The government intends to extend indefinitely a tax incentive for owners of multi-unit properties used as rental accommodation. Currently, owners of buildings with at least 50 rental dwellings receive a 50% land tax discount, set to expire in 2039.
Out-of-home care system
The out-of-home care (OOHC) system will receive a $1.2 billion investment for a child protection package, aimed at providing greater support for children in care.
The funding includes $797.6 million for OOHC reform and over $191 million for recruiting and retaining caseworkers with higher pay and specialized training.
Foster care allowances will increase by 20%, representing the first increase in two decades, with almost $144 million allocated for this purpose.
More than $49 million will be directed to 44 government-owned residential care homes for children with complex needs.
Health
The budget allocates $3.3 billion for building and upgrading health infrastructure, including an additional $700 million for the new Bankstown Hospital.
A $492 million investment will establish a statewide pathology hub at Westmead Hospital, featuring an upgraded high-security lab for testing risky diseases to prepare for future pandemics.
To address elective surgery waiting lists, which have seen a significant increase, the government is investing $23 million to engage more staff, expand weekend theatre rostering, and involve private providers.
A new complex care center for children with multiple chronic and complex health conditions will be established at Westmead’s Children’s Hospital, with over $40 million in funding.
Maternity care will receive an $83.8 million boost, including improved access to midwives and protection against infections for pregnant women and their babies.
A $21.9 million maternity package targeting Aboriginal families will focus on culturally responsive care during pregnancy and the first five years of life.
The Pre-IVF Fertility Testing Rebate of $250 will continue to help eligible NSW residents cover fertility testing costs.
An additional $15 million will support the Royal Flying Doctor Service in transporting clinicians and patients to and from regional,rural,and remote NSW for healthcare access.
Housing affordability
Building on last year’s $6.6 billion investment in social housing, the budget aims to boost housing supply across the state to alleviate housing costs.
Social and affordable housing stock may also increase through the Pre-Sale Finance Guarantee program, with the government potentially purchasing unsold dwellings at a discounted rate.
Homelessness services will receive $30.4 million, including $20 million to expand crisis and transitional housing and $10.4 million over four years for support services through the Rev Bill Crews Foundation.
The government stated that this package will provide “breathing room” for homelessness services while it focuses on increasing public housing and affordable homes, particularly for victims of family and domestic violence.
Cost-of-living
Residents hoping for additional cost-of-living assistance will be disappointed, as the budget does not include any new rebate measures.
Treasurer Daniel Mookhey stated that the government aims to partner with the federal government to provide relief and “fix the fundamentals” by improving public infrastructure and services and increasing housing supply.
The $150 national Energy Bill Relief payment will not be extended beyond the end of the year.
The budget also indicates that ther is no planned extension to the $60 a week cap for tolls, which expires in January, as the government finalizes other measures.
What’s next
The NSW government will now begin implementing these budget measures, with a focus on delivering promised outcomes in housing, child protection, and health.