NSW Budget 2025 was delivered on 24 June, with NSW Treasurer, The Hon Daniel Mookhey MLC, making several announcements that will impact NSW-based businesses.

Among more wide-reaching announcements about cost-of-living measures, infrastructure and education investment, the Treasurer outlined what this Budget delivered for business:

“For the workers, managers, entrepreneurs, innovators, investors and businesses wanting to expand in NSW, wanting to create more jobs, wanting to earn or pay higher wages – this Labor budget delivers even more reform.”

 

The key announcements for NSW business owners

 

1. Creation of an Investment Delivery Authority

The Investment Delivery Authority (IDA) is to be created. The IDA will be modelled on the successful Housing Delivery Authority and will be responsible for fast-tracking approvals of non-residential investments worth more than $1 billion.

The IDA will help bring forward up to $50 billion in private investment each year by cutting through red tape and helping projects move from concept to construction faster.

This will cover investment in renewable energy projects, data centres, hotels and logistics precincts that create jobs. The aim will also be to lift wages, boost productivity and lift overall living standards for those living in New South Wales (NSW).

 

2. A new Innovation Blueprint for NSW

The NSW Government is keen to project an image of NSW being ‘open for business’ and the creation of an Innovation Blueprint is part of this ongoing drive for innovation.

The new $79.2 million Innovation Blueprint will back emerging technologies, commercialisation, advanced manufacturing. It will also ensure that young entrepreneurs can connect with the incubators, accelerators and capital they need to scale their start-ups.

$472.9 million will also be invested in long-term biodiversity protection and land management to secure regional economic growth and regional primary industries.

 

3. Education and school infrastructure

In February, the NSW and Australian Labor governments signed an agreement that would inject $10.4 billion into public education over the next decade.

Part of this investment will include a drive to grow and rebuild the school infrastructure in NSW, providing an opportunity for building companies and trades to support this rebuilding.

$9.0 billion will be invested over four years to build and upgrade schools where they’re needed most. Budget 2025 included funding for building four new schools and upgrading nine more schools across the State.

 

4. Investment in social housing and build-to-rent projects

The Treasurer announced a historic $5.1 billion plan to build 8400 homes for social housing, half of them for the victim survivors of family and domestic violence.

Budget 2025 also announced that the 50% land tax discount for build-to-rent projects will be made permanent. This ends doubt over these build-to-rent projects and sends a strong signal that build-to-rent is here to stay – another good sign for developers and builders.

As the Treasurer said in his speech:

‘I am announcing a nation-leading market intervention to get the private sector to build, build, and build even more homes for our citizens to buy and rent.’

 

5. TAFE and skills funding

A key element of expanding NSW infrastructure and construction will be having the skilled workers and tradies needed to deliver on these projects.

Budget 2025 introduced $3.4 billion of investment in TAFE and skills funding. This is an extra $1.2 billion for TAFE over the next four years, for:

• 23,000 newly trained construction workers
• Upskilling 4,800 tradies to be site-ready
• More school career fairs, and to offer
• 3,000 try-a-trade opportunities in construction.

 

$78 million will also be used to retain high-quality educators by converting TAFE teachers from casual to permanent.

 

Talk to us

Come and talk to the team about the potential opportunities that the NSW Budget 2025 could bring for your New South Wales-based small business.