The NSW Government has handed down its 2026-27 Budget, outlining a range of cost-of-living measures, increased funding for health and education, and significant infrastructure investment while forecasting a return to surplus within two years.
The Budget includes a $561.4 million Transport Affordability Package aimed at easing pressure on households. Measures include a $100 reduction in private vehicle registration fees, an $80 discount for motorcycles, a reduction in the weekly toll cap from $60 to $50, and a one-year freeze on Opal public transport fares.
Motorists will also benefit from the removal of toll administration fees from July, while the Home Energy Saver program will receive $557.1 million to provide interest-free loans and discounts for energy upgrades.
A $1,000 cost-of-living payment will be provided to more than 120,000 NSW Government employees after Sydney’s Consumer Price Index increased by more than four per cent between March 2025 and March 2026.
The Budget also expands support for home ownership, with an estimated 30,000 additional first-home buyers expected to access assistance through the First Home Buyers Assistance Scheme during 2026-27.
Health remains the largest area of spending, with an additional $10.3 billion allocated over four years in partnership with the Australian Government. The funding is expected to support the recruitment of 9,000 health workers and increase planned surgeries across the state.
A further $11.9 billion has been committed to health infrastructure, including 32 new or upgraded hospitals and an additional 2,500 beds and treatment spaces. The Budget also provides $2.9 billion to support higher wages and improved conditions for nurses and midwives.
Other key investments include $116.7 billion in infrastructure over four years, $9.2 billion for more than 260 new and upgraded schools, $3.4 billion for skills and TAFE, and $6.5 billion over 10 years to expand electric bus fleets and supporting infrastructure.
The Government is also investing $5.2 billion in water infrastructure to support housing growth in Western Sydney and an additional $3.5 billion for transport and road projects across the region.
The Budget forecasts a deficit of $2.3 billion in 2026-27, improving from an estimated $3.0 billion deficit in 2025-26. The Government projects a return to surplus in 2027-28, with a forecast surplus of $1.1 billion, followed by surpluses of $1.8 billion and $1.9 billion in the subsequent two years.
Gross debt is expected to reach $178.5 billion by June 2026. The Government says this is lower than previously forecast and will help reduce interest costs while supporting continued investment in essential services and infrastructure.
The Budget forms part of the Government’s broader strategy to provide immediate household relief while investing in long-term economic growth, public services and infrastructure.
