NSW Budget Highlights Housing as Key Priority Amidst Projected $3.43bn Deficit for Next Financial Year | New South Wales Political Scene

The New South Wales (NSW) government has introduced a plan to increase housing construction in its 2025-26 budget. The plan includes providing financial support to developers and enhancing funding for trade training programs at TAFE institutions. The initiative, spearheaded by the Minns government, aims to address housing shortages by having the government act as a guarantor for thousands of new dwellings, facilitating easier financing for mid-level developers. Additionally, the budget invests $1.2 billion in child protection, prioritizing out-of-home care for vulnerable children over the use of costly private accommodations. Foster carers in the state will receive a 20% allowance increase for the care of the 17,000 children currently under their supervision. The budget projects a $3.43 billion deficit for the next financial year, primarily due to increased expenses related to natural disasters and worker compensation claims. Despite this, a surplus is expected in 2027-28, marking an improvement from the deficit-ridden pandemic era. Property transfer duties, also known as stamp duty, will contribute $13.4 billion to NSW’s revenue in the upcoming financial year, up from previous forecasts. The government is pushing reform to the worker’s compensation scheme to curb expenses, particularly concerning claims for psychological injuries and those resulting from sexual harassment. The budget also faces criticism for a lack of significant cost-of-living measures and its cautious approach to addressing the housing crisis, relying instead on support for private developers. Key infrastructure projects continue to receive funding, yet direct investment in housing remains limited, possibly linked to concerns about the state’s credit rating.

Source: https://www.theguardian.com/australia-news/2025/jun/24/housing-push-centrepiece-of-nsw-budget-which-projects-343bn-deficit-next-financial-year