NSW Budget 2026 Statement

 

 

NSW Budget 2026 Statement

A Missed Opportunity for Targeted Action?

However, while there are clear positives, important questions remain about whether the Budget fully responds to the realities of life in regions such as Western Sydney.

The 2026-27 Budget reinforces Western Sydney’s role as a major growth corridor. It includes funding for road upgrades to improve connections to the Western Sydney International Airport and Aerotropolis. There are also commitments to build ten new public schools across Western Sydney, including in high-growth suburbs such as Austral, Oran Park, and Bella Vista. Additional investments in emergency services infrastructure, including a new fire station in Marsden Park, recognise the needs of rapidly expanding communities.

These investments are essential, particularly as population growth continues to outpace infrastructure in many parts of the region. However, a comparable level of investment in social infrastructure is still needed to support community wellbeing and cohesion. Communities need schools and roads, but they also need neighborhood centres, youth services and shared community facilities. This Budget prioritises the former to the detriment of the latter.

The 2026 NSW Budget does include several measures that provide immediate relief for households, particularly in relation to transport costs. These include a freeze on Opal fares for 12 months, reductions in vehicle registration fees, and a lower weekly toll cap of $50.

These measures are especially relevant for Western Sydney. Residents are significantly more reliant on private vehicles, with 65.5% of people commuting by car compared with 43% across Greater Sydney. This reflects longer travel distances and fewer public transport options, which in turn increases exposure to rising fuel prices and toll costs.

While short-term relief is welcome, a longer-term commitment to accessible and effective public transport remains critical. Greater investment is needed to improve connectivity, particularly to ensure that communities across Western Sydney can access opportunities associated with the Western Sydney International Airport.

Modest cost relief measures alone will not address the broader cost-of-living pressures facing the region. Many households are experiencing financial hardship, with increasing numbers seeking emergency assistance or facing homelessness for the first time. At the same time, the community sector is under significant strain, as rising demand and increasingly complex needs outpace available resources. This Budget does not sufficiently respond to these escalating pressures.

Health is also a central focus of the Budget, with significant investments in new and upgraded facilities that will benefit Western Sydney communities. These include funding for new hospitals in Rouse Hill and Bankstown, as well as upgrades to facilities in Fairfield, Blacktown, and Mount Druitt. The Budget also commits $10.3 billion over four years to expand the health workforce and increase hospital capacity. Additional funding for programs such as Thriving Kids aims to improve long-term health outcomes. All are positive contributions to addressing the historical under-servicing of Western Sydney.

In community safety, increased investment in domestic and family violence services, including a 50% uplift in funding, represents meaningful progress. Expanded crisis response programs further strengthen this commitment. Mental health support is also bolstered through continued funding for frontline services, including Lifeline and community-based organisations.

However, there is limited additional support for the all-rounder community organisations that serve and service Western Sydney. Without increased operational funding, many local place-based services may struggle to meet rising demand, particularly given the high growth in certain pockets of Western Sydney. At a minimum, funding increases tied to population growth is needed to ensure that the region’s community sector can continue to meet the needs of growing communities.

Housing also continues to be a key priority for Western Sydney. Our annual survey of the region’s community sector consistently identifies housing inaccessibility as one of the key drivers of social inequity and disadvantage. While the NSW Government’s establishment of a Development Coordination Authority is intended to accelerate housing delivery, there are few substantial new initiatives to address the scale or urgency of the housing crisis.

Across Western Sydney, more individuals and families are experiencing homelessness than ever before. Housing affordability remains a critical issue, closely tied to the broader cost-of-living crisis. More funding is needed for the specialist homelessness services and neighborhood centres that work on the front lines of the housing crisis supporting people living in poverty and economic disadvantage.

We also have concerns about whether the Budget sufficiently addresses systemic disadvantage. A stronger focus on prevention, early intervention, and the underlying drivers of inequality is needed, alongside expanded housing and wellbeing supports.

In terms of social cohesion, increased policing and targeted funding in response to recent incidents are acknowledged. However, greater investment in community-based services is necessary to build long-term resilience, trust, and social connection within diverse communities such as Western Sydney.

Although the Budget frequently highlights Western Sydney and acknowledges its importance to the state’s future, the overall response remains relatively broad in scope.

The release of a dedicated Western Sydney Budget Paper demonstrates an ongoing commitment. However, there is limited evidence of a deeply tailored response that addresses the region’s complex and intersecting challenges in a coordinated way.

Despite positive investments, the Budget falls short in several key areas that disproportionately affect the region. The Budget provides meaningful short-term relief and continues major infrastructure investment across Western Sydney. However, the region’s rapid growth and social complexity demand more targeted and comprehensive responses. Critical challenges such as housing affordability, transport connectivity, and social equity require roots and branch reform of the systems that cause inequality between regions, rather than blanket or piecemeal approaches.

Western Sydney is central to the state’s economic future, but it is also a region where pressures are felt most acutely. Future budgets will need to ensure that investment keeps pace with population growth and community need, and that development is matched with opportunity, inclusion, and improved wellbeing for all.

Dr Joshua Bird 

Acting Chief Executive Officer

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