The state’s peak business body says the 2025–26 NSW Budget offers mild relief for rising costs.

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 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,” Mr 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 disincentivises employment and investment.

“With inflation and real wages rising many more businesses will be caught in the payroll tax net without reform.”

While the budget overlooks immediate cost relief, it prioritises 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.

Mr 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.”

In our regions, Business NSW welcomes $4.2 billion for natural 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 new economic model.

“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.”

Key budget measures:

• A $3.4 billion investment in TAFE, including $40.2 million for 23,000 fee-free construction apprenticeships and $13.8 million to place 4800 new workers in residential construction.
• $27.3 million over four years to establish a Future Jobs and Investment Authority to diversify coal-reliant regions like the Hunter and Central West.
• $280 million in screen and digital media support via the Made in NSW fund, backing indie game studios and creative tech SMEs.
• An extension of the National Energy Bill Relief Fund of $150 to the electricity bills of eligible small businesses from 1 July 2025 to end of 2025.
• $3.5 billion for regional hospital upgrades to ensure rural and regional communities grow.
• Introduction of a “works-in-kind” scheme, allowing developers to deliver infrastructure in place of housing levies.
• Ongoing rollout of the NSW Small Business Strategy, with a focus on cutting red tape and improving procurement access.
• From 1 July 2025, small businesses may be eligible for around a 30% discount on the upfront cost of installing small-scale battery systems.
• $27.3 million to support the establishment of the Future Jobs and Investment Authority to coordinate new economic opportunities in coal producing communities.

About Business NSW 

Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826. We represent almost 50,000 businesses.

MEDIA CONTACT: BEN PIKE – 0429 993 822