18 May 2025

 

FOCUS ON HOUSING WITH MILD RELIEF FOR BUSINESS IN NSW BUDGET  

 

 

The NSW Budget is a restrained budget focusing on housing our workforce, as small and medium businesses (SMEs) are offered modest and targeted relief. 

 

Business Illawarra, the region’s peak business organisation believes key measures announced in the budget are important areas of progress for the community to live, work and grow industry. 

 

“Today’s budget has a clear focus on priorities to address housing, planning, transport and health providing much needed infrastructure pathways for businesses operating in these sectors.” Interim Director Business Illawarra Paula Martin said. 

 

“We outlined the six major projects and programs that are necessary for the Illawarra’s economic growth for this budget and have had some success in our rail asks and housing infrastructure relief. 

 

“It was good to see $10 million allocated in the budget towards the Illawarra Rail Resilience Plan, a long-term Business Illawarra advocacy pillar aimed at addressing the growing challenge relating to the ageing Southern Rail line infrastructure needed for our growing freight and community needs. 

 

“More funding for social and affordable housing to start addressing the shortfall in the Illawarra Shoalhaven was also recognised with a focused set of funding priorities for the entire State including the Transport Orientated Development Program ($520m), funding ($555m) to speed up the planning system and essential worker housing ($655m). These are genuine game changers when it comes to getting workers housing close to where they work and play. 

 

“Business Illawarra welcomes the continuation of the $325 energy rebate for small businesses and the focus on housing delivery. This will provide much needed assistance to business who reported rising energy costs as the number one business cost hampering their business growth. 

 

“The budget deficit is forecast to shrink from a revised $9.7 billion for 2023-24 to $3.6 billion for 2024-25. However, without a surplus in the coming years, net debt is forecast to increase from $96.8b (11.9% of Gross State Product) in 2023-24 to $139.5b (14.2% of GSP) in 2027-28.” Said Ms Martin 

 

 

Key measures for business:   

 

  • A $1.5b tax increase on businesses and landlords via the NSW Government refusing to index land tax above the current $1.075m tax-free threshold.  

  • A further $5m (on top of the current $25m) for the NSW Business Bureau, which offers personalised business support and guidance.   

  • Extension of Energy Bill Relief Fund for the 2024-25 year, being $325 for eligible small businesses   

  • Eraring coal fired power station to remain open for a further two years until August 2027, costing taxpayers up to $450m.    

  • Roads surrounding Western Sydney Airport to get more than $1b ($5b for Western Sydney roads over four years).   

  • Construction on Parramatta Light Rail Stage 2 will begin before the next election, costing $2b.  

  • An additional $50m for the Regional Development Trust, bringing this pipeline of investment across regional communities to $400m.    

  • $3.3b for restoration works to repair local and state roads damaged in major flood events.   

  • Casual teachers at TAFE NSW will be converted into full-time staff, costing $83.1m over four years.   

  • Fee-free training for apprentices and trainees to continue ($16.3m).  

  • Fee-free training for new apprentices and trainees will continue, at a cost of $16.3m.  

  • HOUSING: $650 million for essential worker housing; $253.7m for improvements to the state’s planning portal (including artificial intelligence); $201.9m for housing infrastructure in Bathurst, Port Macquarie-Hastings, Shoalhaven, the Tweed Shire and Wagga Wagga; $632m to continue delivering new and safe housing across the Northern Rivers and Central West, including $525m to support voluntary buybacks, raising, repairs and retrofits through the Resilient Homes Program.    

  • Nightlife and live events boosted with more than $45m for The Office of the 24-Hour Commissioner and Sound NSW.   

 

Key measures for Illawarra Shoalhaven region include: 

 

  • Bomaderry rentals: $5 million for Landcom to deliver 60 build-to-rent dwellings. 

 

  • $105 million for Nowra Bypass and Network Planning 

 

  • $85 million from the Housing Infrastructure Fund in Restart NSW to fast track infrastructure in West Dapto, tweed Heads and Wagga Wagga 

 

  • $5 million for the BlueScope Surplus Land master plan, preparing for the creation of a jobs centre for the State within the Illawarra 

 

  • $2 million to masterplan a 32 hectare site at Kind Street Warrawong to create parklands, recreation, culture, arts, heritage, tourism and entertainment facilities for public use 

 

  • Continuation of the 781.9 million for New Shellharbour Hospital  and Integrated Services and $438 million Shoalhaven Hospital Redevelopment; $21.9 million Wollongong Hospital Package and $7.5 million Milton Ulladulla Hospital Upgrades 

 

  • A new primary school at Calderwood and ten new public preschools  

 

  • 627 education staff made permanent 

 

  • $147.2 million Continuation of the Appin Road upgrade 

 

  • An additional $50 million to boost the Regional Development Trust Fund to $400M. This fund will focus on, Sustainable regional industries, First nations economic development and enterprise, Community connection and capacity building, Improving regional service delivery.  

 

 

 

 

Business Illawarra’s recommended actions for the 2024-25 NSW Budget are: 

Action 1: Commence the Southern Rail Network Resilience Plan (2023 election commitment), which includes an investigation of the South West Illawarra Rail Link proposal. 

Action 2: Commit additional funding and cashflow allocations to expedite detailed design and planning work for the Picton Road Motorway project. 

Actions 3.1 and 3.2: Identify key Government land for affordable housing supply in the Illawarra Shoalhaven with a timeline for delivery, and directly invest in meeting the backlog of 3,925 social housing dwellings in the Illawarra Shoalhaven. 

Action 4: Provide enhanced support for clean energy projects in the region through the Illawarra Renewable Energy Zone (REZ). 

Action 5: Allocate funds for the development of the Illawarra Sport and Entertainment Precinct (pending approval of the masterplan and business case). 

Action 6: Work with Wollongong City Council to support an urban renewal program that includes developments around Wollongong Train Station and the Wollongong Health Precinct. 

 

Media Contact: Paula Martin 0414 901 777 

 

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About Business Illawarra 

Formerly the Business Illawarra Business Chamber, Business Illawarra is the region’s peak business organisation, a not-for-profit advocacy group dedicated to the economic development to the Illawarra.