Winner: Developers
In an Australian first, the government has announced a $1 billion Pre-Sale Finance Guarantee program designed to help developers secure a funding stream for new housing projects.
The state will act as guarantor on up to 50 per cent of pre-sales in approved housing projects to allow developers to secure finance and begin construction, in turn boosting the housing supply in the state and putting downwards pressure on costs.
The government expects to accept applications by the end of the year and the treasurer says it could provide confidence to the market for up to 15,000 additional dwellings over five years.
If they remain unsold, the government can then on-sell the dwelling or retain it as social or affordable housing.
This is just one new program to help the government reach its target of about 75,000 new homes per year over five years to 2030.
The government has also announced private developers may be able to build public roads and parks on their land — with pre-approval from the state — in efforts to fast-track infrastructure in Sydney’s outer suburbs.
The government also wants to indefinitely extend an existing tax incentive for the owners of multi-unit properties — primarily used as rental accommodation — to boost the supply of rental homes.
Currently, the owners of buildings with at least 50 rental dwellings receive a 50 per cent land tax discount which was due to end in 2039.
Winner: Out-of-home care system
The government will invest $1.2 billion for a child protection package, to provide more support for children in out-of-home care (OOHC).
A report into alternative care arrangements last year found that they are not suitable settings for children and young people, with the government since banning the use of unaccredited emergency accommodation.
The funding will include $797.6 million to reform OOHC and more than $191 million will go to recruiting more than 200 and retain more than 2,000 caseworkers with higher pay and specialised training.
It will also spend almost $144 million to provide a 20 per cent increase to foster care allowances “for the first time in two decades”.
More than $49 million will go to 44 government-owned residential care homes for children with complex needs.
Neutral: Health
This year’s budget includes $3.3 billion to build and upgrade health infrastructure, including an additional $700 million for the construction of the planned new Bankstown Hospital.
It has also committed $492 million for a statewide pathology hub at Westmead Hospital, with an upgraded high-security lab for testing dangerous diseases to prepare for future pandemics.
More than 8,500 people waited longer for surgery than clinically recommended in the first three months of the year, according to the Bureau of Health Information.
With a major increase in overdue operations, the government is investing $23 million to deal with the elective surgery waiting lists that have blown out across the state.
The funding would go to engaging more staff, expanding weekend theatre rostering and engaging private providers.
More than $40 million will go to a new complex care centre for children with multiple chronic and complex health conditions, as part of Westead’s Children’s Hospital.
An investment of $83.8 million will also be made to boost maternity care, including improving access to midwives and protecting pregnant women and their babies against infections.
A $21.9 million maternity package aimed at Aboriginal families will look at providing culturally responsive care during pregnancy and the first five years of life.
Pre-IVF Fertility Testing Rebate of $250, which helps eligible NSW residents cover costs of fertility testing, will also continue.
An extra $15 million will also go towards the Royal Flying Doctor Service to support the transport of clinicians and patients to and from regional, rural and remote NSW to access healthcare.
Neutral: Housing affordability
Last year the NSW government made a $6.6 billion investment in social housing, billed as the largest state-based investment of its kind since WWII and that investment is still being rolled out.
On top of that, social and affordable housing stock could also experience a boost from any unsold dwellings in developments constructed under the approved Pre-Sale Finance Guarantee program, which can be purchased by the government at a discounted rate.
The government’s housing plans are to boost housing supply across the state, in turn alleviating housing costs when construction is complete.
The NSW government will invest $30.4 million for homelessness services, 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 to support unhoused people.
The government said the package will give homelessness services “breathing room now”, while it focused on more public housing and more affordable homes, particularly for family and domestic violence victim-survivors.
Loser: Cost-of-living help
Residents across the state hoping for additional cash in their pocket to help with cost-of-living pressures will be sorely disappointed with this year’s budget.
There are no new rebate measures listed.
Treasurer Daniel Mookhey said NSW residents expected the government to partner with the federal government to provide relief and “fix the fundamentals” by improving the state’s public infrastructure and services and increase housing supply to alleviate pressure on costs.
The $150 national Energy Bill Relief payment will not extend beyond the end of the year.
The budget also indicates there is no planned extension to the $60 a week cap for tolls, which expires in January, as the government finalises other changes to tolls.
Winner: Domestic violence response
The peak body supporting family and domestic violence victim-survivors in NSW said the state is averaging 438 incidents of domestic violence per day.
Domestic Violence NSW has been calling for a 50 per cent increase to baseline funding for services across the state, many of which are struggling to keep their doors open with waitlists of up to two months.
Instead, government services are the biggest beneficiaries of their budget announcement.
Almost half-a-billion dollars in funding will go to victim-survivors navigating the justice system, including $227 million over five years for government support services helping people access counselling and financial assistance.
The funding also includes an additional $272 million to bolster government support services.
The commitment provides $49 million for a hub to support victim-survivors going through the legal system, $34 million to upgrade the Downing Centre courts precinct and $48.3 million to fund more prosecutors.
There will also be more than $100 million to increase the capacity of the prison system.
The package will include an additional $12.8 million to help reduce stress and trauma for child complaints and witnesses in sexual offence proceedings, and $9.3 million ensure high-risk domestic violence offenders are subject to strict monitoring and supervision.
An additional $11.2 million will be invested in long-term reform of response systems, and a $2 million to start rolling out an Aboriginal domestic, family and sexual violence plan.
The commitment also offers five-year contracts for support services in a bid to provide “funding certainty” to struggling organisations.
While Domestic Violence NSW welcomed the announcements, they said it does not address the immediate day-to-day needs of a sector struggling to cope.
Loser: Train commuters
After a tumultuous year for Sydney’s trains, railway commuters won’t see any new commitments in this year’s budget to improve services.
The pay dispute between the government and the railway union has not yet been finalised.
Last year’s budget included more than $22 billion for building and improving public transport, including increased routine rail maintenance.
There will be more than $522 million in this budget for other public transport infrastructure, including 75 new buses, maintenance for bus services, a 35-metre ferry wharf and upgrades for the light rail stop at the new Sydney Fish Market.
Neutral: Motorists
Motorists won’t find any direct toll relief in this budget, with no extension to the $60 a week cap for tolls beyond its cut-off date in January.
The budget includes $58 million to establish, operate and manage the NSW motorways entity and continue the toll reform program.
The government is still working on major toll reform, including a new pricing structure to replace the cap.
The treasurer said there will be “more to say” later in the year.
There is total of $5.5 billion in the budget to build and upgrade roads across Western Sydney, some of which is in partnership with the federal government.
About $835 million will go to infrastructure for aerotropolis, including $50 million on road upgrades and $30 million on new road signs.
Winner: Education
The government will spend more than $17,000 per public school student in this calendar year, up from more than $14,800 in 2023.
It said it is adding $5.6 billion into public schools, alongside $4.8 billion from the Australian government.
The budget includes a record $9 billion for school infrastructure over four years for new and upgraded schools.
The government will spend $100 million to be used to relocate the TAFE NSW Bankstown campus to allow for the building of the new hospital.
A further $50 million is for high potential and gifted education opportunities at public schools.
Winner: Disaster response
With the state devastated by several natural disasters in recent years, the latest budget includes a number of measures for emergency response efforts.
Fire and Rescue NSW will receive an additional $17 million over two years to deliver 15 fire trucks to replace ageing vehicles.
The RFS will get a $34.4 million boost over four years to secure fixed-wing aircraft and helicopters for emergencies, including fire seasons.
The landline and mobile phone emergency alert system to provide location-based warnings during natural disasters, including floods and bushfires, will receive an additional $6.4 million.
More than $42 million will go to recruiting 52 new firefighters to staff the new 24/7 Badgerys Creek Fire Station.
In the Central West, there will be $27 million for repair and restoration of water and sewer infrastructure damaged by 2022 severe weather and flooding.
Winner: Arts and culture
The government said it is working to secure a “bright future” for the film industry in NSW and investing more in growing local jobs.
The budget includes $100 million to support the search for a second film studio in Sydney, including to select a location site.
With the Disney Studios Australia at Moore Park the only studio in Sydney, the government said there is a “critical shortage” of production space.
There will also be a further $280 million for the NSW screen and digital games sector, through the Made in NSW fund and existing rebate programs.
As part of the package, there will be an overhaul of the regulatory framework for screen and games production, to reduce the red tape and administrative burden on councils and productions.
There will also be $135 million for Destination NSW events, promotion and industry support, focused on the visitor economy.