NSW Treasurer Daniel Mookhey has handed down the Minns government’s third budget, describing it as a pathway back to surplus.

While announcing a $5.7 billion deficit for 2025-2026, Mookhey said the coming year would be one of “tight spending”, with a surplus targeted by 2028-2029.

“For most of the last three years, the rising cost of living and higher interest rates have put pressure on households and dragged on economic growth,” he said.

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“The challenge is no longer high inflation but low growth.

“In this budget, we show that cost of living pressures and interest rates are easing and opportunities for economic growth are emerging.”

Here’s how the budget could affect you.

Housing developers and home buyers

The NSW Government is investing $1 billion into the Pre-Sale Finance Guarantee, aimed at helping developers secure finance earlier and speed up construction timelines.

The initiative is expected to fast-track more than 5000 homes over five years and create 1500 jobs.

“We promise to buy anything that’s unsold,” Mookhey said.

The government is also making the 50 per cent land tax discount for build-to-rent projects permanent, giving long-term certainty to investors and boosting rental supply.

The state will park $145.1 million into the Building Commission for the building regulator to continue to conduct inspections, investigate complex building issues, progress key building reforms and educate the industry.

Child carers

From January 1, 2026, foster carers will receive a 20 per cent increase in allowance.

A carer of a five-year-old will get an extra $131.20 per fortnight, while someone caring for a 14-year-old will see an increase of $176 per fortnight.

The budget includes a record $1.2 billion investment in child protection, marking the largest-ever commitment to reforming the out-of-home care (OOHC) system, which supports children who can’t safely live at home.

More than 200 new caseworkers will be hired and paid more, joining the current workforce of 2126.

The funding will also deliver 44 government-owned, purpose-built or upgraded residential care homes for children older than 12 with complex needs.

Hospitals and healthcare

The Minns Government is committing $12.4 billion to health infrastructure over the next four years.

Key investments include $910 million for Western Sydney’s first new hospital in 40 years at Rouse Hill, $700 million for the construction of the new Bankstown Hospital, and $492 million to build a state-of-the-art pathology hub at the Westmead Health Precinct, replacing a facility built more than 50 years ago.

Commuters using public transport

The NSW Government is committing $522.2 million to improve public transport across the state, including $82.3 million to deliver 75 new buses.

It will allocate $70 million to enhance transport access to the new Sydney Fish Market, with $30 million to build a scenic ferry wharf on Blackwattle Bay, and $40 million to upgrade the nearby Wentworth Park light rail stop with new lifts, ramps, and improved safety features.

Regional residents

Residents in the Riverina Murray region will benefit from $206 million in road upgrades, while the Illawarra-Shoalhaven region is set to receive $680.5 million to continue works on the Princes Hwy.

Small businesses and start-ups

The government is pouring nearly $80 million into its Innovation Blueprint to give emerging tech companies more financial and structural support.

Another $17.7 million will go towards setting up the Investment Delivery Authority, which is designed to make it easier and faster for major projects to get off the ground in NSW.

Students

The budget earmarks $9 billion for building new schools and upgrading existing facilities across NSW, including updating the historic Thornton Public School.

A record $3.4 billion will be splashed out on TAFE and skills funding to help grow the construction workforce.

TAFE campuses will be upgraded, casual teachers converted to permanent roles, and some operations relocated.

Emergency services

The government is putting more funding into emergency services, with a focus on boosting frontline responses to natural disasters.

That includes $34.4 million for the Rural Fire Service to continue leasing aircraft and helicopters, $42.2 million to hire 52 staff for the new 24-hour Badgerys Creek Fire Station, and $17 million to upgrade Fire and Rescue NSW’s ageing fleet.

Toll cap

While the $60 weekly toll cap remains in place until January 2026, the Minns Government has yet to commit to extending it, and the 2025-2026 budget included no new cost-of-living relief.