The 2025-26 NSW Budget offers mild relief for rising costs, according to the peak body Business NSW.
Of interest to retailers, the state budget has set some cost of living relief which is expected to lift consumer spending, including reducing or eliminating unnecessary fees imposed on renters, support for first home buyers, energy bill relief, bulk-billing boosts and new pay agreements for public sector workers.
Business NSW CEO Daniel Hunter praised the budget for having the right intent and for the sensible approach to economic management of the state’s finances.
However, he added there needs to be an emphasis to land essential reforms that ease the burden on business, especially the out-of-control cost of workers’ compensation.
“All sides of the Parliament must come together to deliver reforms on workers’ compensation as soon as possible,” Hunter said.
Insurance premiums and the looming challenge of payroll tax are also areas in need of review.
“There are dark clouds on the horizon for business – global uncertainty, subdued business conditions and costs pressures such as spiralling workers’ compensation and general insurance premiums – but this budget keeps the state ticking along and is financially prudent.
“The $3.4 billion investment in TAFE, with a focus on residential construction, is a positive.
“The business community also welcomes $150 off small business electricity bills until Christmas.
“But the grim reality is 52,000 NSW businesses continue to be slugged with payroll tax – something which dis-incentivises employment and investment.
“With inflation and real wages rising many more businesses will be caught in the payroll tax net without reform.”
Hunter added that while the budget overlooks immediate cost relief, it does prioritise long-term growth.
The Minns Government has committed nearly $80 million to innovation and will establish a new Investment Delivery Authority to position NSW as a global business hub.
The budget also set aside $20.6 million for the Office of the 24-Hour Economy Commissioner to support the night-time economy and local councils through regulatory reform, grants programs, precinct-based initiatives, digital tools and other support. This is expected to include a change in the way trading hours are regulated in key night-time spaces across Sydney.
Hunter welcomed these moves as a good first step towards driving productivity and attracting investment.
“Thankfully, the NSW Government’s investment gives our businesses a chance to grow, compete globally, and create new jobs, even with the global uncertainty we’re facing.”
The budget also outlines a further $4.2 billion of disaster relief to help rebuild regional communities and business.
“The Future Jobs and Investment Authority is also a welcome announcement to help coordinate the economic transition of coal producing regions to a new economic model,” Hunter said.
“This NSW budget may fall short on cost relief, but its focus on innovation, skills, and infrastructure helps sets NSW up for long-term growth.”
Speaking on the budget, state treasurer Daniel Mookhey said the Minns Government is focused on the future of economic growth.
"It is focused on the future of families, their jobs, their businesses, their wages, their hospitals, their schools and their essential services," Mookhey said. "The budget shows how in each year of this young government we make progress. We have added to our ambition. We are building a better New South Wales."