10 July

NSW Budget 2025: What It Means for Business

The 2025–26 NSW State Budget, delivered on 24 June by Treasurer, outlines a number of measures designed to stimulate economic growth, attract private investment, and support skills development.

While the broader focus includes infrastructure, education, and cost-of-living relief, several initiatives are directly relevant to small business operators across the state.

Below is a summary of key announcements and what they may mean for your business.

1. New Investment Delivery Authority to Expedite Large-Scale Projects

A new Investment Delivery Authority (IDA) will be established to accelerate approvals for non-residential developments valued at over $1 billion. Modelled on the Housing Delivery Authority, the IDA is expected to unlock up to $50 billion in private sector investment annually by streamlining approval processes.

Projects likely to benefit include renewable energy developments, data centres, tourism infrastructure and logistics precincts—industries that create employment and drive regional economic uplift.

For business owners operating in construction, engineering, or professional services, this measure may present indirect opportunities to participate in large-scale projects or to benefit from increased local economic activity.

2. Innovation Blueprint and Technology Commercialisation

The Budget includes $79.2 million to fund a new Innovation Blueprint aimed at positioning NSW as a hub for advanced manufacturing, commercialisation of emerging technologies, and start-up acceleration.

This includes targeted support for young entrepreneurs and early-stage businesses, including improved access to incubators, accelerator programs, and venture capital. In addition, $472.9 million has been allocated to biodiversity protection and land management, supporting sustainable growth in regional industries.

Small businesses operating in technology, agribusiness, or sustainability-related fields should consider how to align with these government priorities.

3. Public Education and School Infrastructure Investment

Following a February agreement between the NSW and Australian Governments, $10.4 billion will be invested in public education over the next decade, with $9.0 billion allocated over the next four years for the construction and upgrade of schools across NSW.

This includes the construction of four new schools and upgrades to nine existing schools in high-growth areas. Building and construction businesses, subcontractors, and tradespeople are likely to benefit from project work stemming from this education-led infrastructure expansion.

4. Expanded Social Housing and Build-to-Rent Incentives

The Government has committed $5.1 billion to construct 8,400 new social housing dwellings, including 4,200 designated for victims of domestic and family violence.

To further encourage housing supply, the 50% land tax discount for build-to-rent developments has been made permanent. This policy shift removes previous uncertainty and confirms the Government’s long-term support for institutional rental housing as a viable asset class.

Property developers, investors, and construction firms operating in the residential sector will welcome this confirmation and may consider realigning development strategies accordingly.

5. TAFE and Skills Development

To ensure a steady pipeline of skilled labour to support these infrastructure and housing initiatives, the Government has committed $3.4 billion to TAFE and vocational education over the next four years—representing a $1.2 billion uplift.

The funding will enable the training of:

23,000 new construction workers;
4,800 upskilled tradespeople;
Delivery of 3,000 “try-a-trade” opportunities; and
Increased school-based career events.

A further $78 million will convert casual teaching positions at TAFE into permanent roles, with the aim of improving training quality and staff retention.

Small businesses in the trades, construction, and technical services sectors are encouraged to consider how these measures may assist in addressing current labour shortages and future recruitment plans.

How We Can Help

The NSW Budget 2025 signals targeted government support for innovation, infrastructure and industry-led growth. These measures may unlock funding, investment or partnership opportunities for your business.

If you would like to explore how your business can benefit from these developments, or require assistance in planning for the year ahead, please contact our office. We would be pleased to assist.