25 March 2025 

 
FEDERAL BUDGET FALLS SHORT ON DELIVERING FOR BUSINESSES ON THE SOUTH COAST 

 

The 2025-26 Federal Budget delivers some measures for businesses in the Illawarra, South Coast, and Highlands, but falls short on critical infrastructure investment needed for long-term economic growth and job creation. 

 

Business Illawarra commends the government for allocating $500 million from the Innovation Fund to provide merit-based grants for clean energy manufacturing opportunities, including projects which build new capability in wind tower steel fabrication, battery storage, hydrogen electrolysers, energy efficiency and electrification technologies and other critical components, like cables. 

 

“The Illawarra Shoalhaven region is uniquely placed to lead the country in clean energy manufacturing opportunities and lead the charge in green hydrogen, offshore wind, solar and battery storage and transition to renewables.” Director Business Illawarra Coralie McCarthy said. 

 

“A focus on sovereign manufacturing capabilities in this budget will also assist key sectors across our economy to boost our region’s ability to create jobs and expand industry. 

 

"While the energy rebates will help small business, this budget does not address the fundamental challenges faced by Illawarra businesses—rising costs, workforce shortages, and the urgent need for infrastructure investment.  

 

“Business Illawarra has long advocated for road, rail, and visitor economy infrastructure improvements to unlock the region’s growth potential. However, despite these efforts, today’s budget falls short of commitment to key projects that would drive future prosperity for business. 

 

"We are particularly disappointed by the lack of commitment to transformative transport projects. These are essential to unlocking our region’s full economic potential and creating long-term, sustainable jobs. 

 

“Connectivity across the region is one of the top three barriers cited by business in being able to attract the right skill and talent to grow their business. 

 

“We have growing industries with global opportunities knocking at our door. The speed at which we connect our towns and cities across the region through the right infrastructure will be a defining factor for our regional competitiveness." Ms McCarthy said. 

 

 

Key Takeaways for the Business Illawarra Region  

 

  1. Infrastructure & Regional Investment   

 

Business Illawarra has identified several critical infrastructure priorities that without immediate action, economic growth opportunities will be stalled. 

 

 

Rail Transport for passenger and freight – a missed opportunity   

  • Investment in passenger & freight rail between the Illawarra, Southern Highlands, and Western Sydney. 

  • Electrification of the Bomaderry-Kiama rail line to improve passenger services. 

 

Road Upgrades, essential for growth and connectivity: 

  • Picton Road upgrades – a vital freight and commuter corridor. 

  • Macquarie Pass safety improvements for freight and passenger access. 

  • Upgrades for an East-West freight link to Canberra via Main Road 92. 

 

Air Transport – Growing Regional Connectivity  

  • Airport improvements to Shellharbour Airport ensuring this important asset is ready for future growth.  

 

  1. Housing Supply – Supporting Skills and Workforce Growth  

 

  • Affordable Housing Announcement: $54 million nationally to support state and territory governments in accelerating prefabricated and modular home construction. The Federal Government will also boost the Help to Buy scheme by increasing income caps from $90,000 to $100,000 for individuals and from $120,000 to $160,000 for joint applicants and single parents. New property price caps are now $1.3 million for Sydney and “regional centers” and $800,000 for other regions.  

 

  1. Energy & Cost of Doing Business 

  • Energy Relief: Small businesses will receive a $150 energy rebate from July 1 ($75 per quarter) 

  • National Broadband Network: $3 billion to complete the NBN rollout, improving digital connectivity for businesses. 

 

  1. Addressing Skills Shortages 

  1.  

  • Apprentices: Eligible apprentices get $10,000 if they train up in the housing sector. There will also be 100,000 free TAFE places annually from 2027.  

 

  1. Green Energy Industry Transition  

  • Clean energy manufacturing: $500 million from the Innovation Fund to provide merit-based grants for clean energy manufacturing opportunities, including projects which build new capability in wind tower steel fabrication, battery storage, hydrogen electrolysers, energy efficiency and electrification technologies and other critical components, like cables. 

 

  1. Regional Community Projects with funding on the South Coast:  

  • $13.6 million in 2025–26 to the New South Wales Government for the St George Illawarra Dragons Community and High-Performance Centre, which will provide high performance and community sporting facilities for elite athlete pathways and community programs. 

 

 

What Comes Next? 

 

Business Illawarra remains committed to working with all levels of government to advocate for infrastructure and investment that will secure the region’s long-term economic success. 

 

"We will continue to push for game-changing investments in road and rail, stronger support for our visitor economy, and infrastructure that will drive job creation—particularly in the energy transition space," Ms. McCarthy said. 

 

"We stand ready to work with the Federal Government to ensure our region plays a key role in Australia’s economic future." 

 

 

 

Media Contact  

 

Coralie McCarthy  

Director, Business Illawarra 

M: 0417 431 564 

 

— ENDS — 

 

About Business Illawarra 

Business Illawarra is the region’s peak business organisation; a not-for-profit advocacy group dedicated to the economic development of the Illawarra, Shoalhaven and Southern Highlands.