NSW Budget provides innovation support and housing boost

• Tech start-ups win in $79.2 million Innovation Blueprint
• $1 billion backing for housing projects  
• Deficit blows out to $3.4 billion – but surplus tipped 

Today’s NSW Budget sends some positive signals to the business sector but holds little additional cost relief for businesses, according to Australia’s largest accounting body, CPA Australia. 

CPA Australia’s Business Investment and International Lead Gavan Ord said initiatives including the government’s new Investment Delivery Authority, investment into skills development and infrastructure and the Innovation Blueprint would help attract more investment to the state. 

However, he noted that further progress was needed in reducing red tape and advancing tax reform to fully unlock New South Wales and Australia’s economic potential. 

Mr Ord welcomed funding of $79.2 million for the NSW Government’s Innovation Blueprint, which includes support for the commercialisation of emerging technologies and innovative products, and the diversification of manufacturing. 

“CPA Australia congratulates Treasurer Daniel Mookhey and the Minns Government for launching its Innovation Blueprint and providing solid funding in this Budget. This helps set the state up for growth in exciting areas of the economy,” he said. 

“SMEs will be pleased to see this support, especially given the sector lags most of their Asia-Pacific counterparts when it comes to the adoption of technologies and the commercialisation of their innovative ideas. 

“However, we would like to see all levels of government come together with these packages to ensure Australian businesses can maximise the commercial and economic impact of government support, reduce duplication and attract more R&D and innovation across the nation. 

“Better coordination between the federal and state governments on innovation policy should be a key area of discussion at Federal Treasurer Jim Chalmers’ upcoming productivity roundtable.” 

He said housing supply would improve through the NSW Government becoming the guarantor of up to $1 billion of new housing projects, bringing forward the construction of up to 15,000 extra homes over five years.  

“The government’s support for the development of thousands of homes goes some of the way towards solving the chronic housing supply problems in NSW and will help small businesses that operate in the housing construction sector,” Mr Ord said.  

Mr Ord noted the 2025-26 Budget deficit was projected to blow out to $3.4 billion, $1.2 billion above expectations. He said projected surpluses of $1.1 billion in 2027-28 and 2028-29 were positive, but the government would need to keep its spending under control in challenging economic times.    

He said housing supply would improve through the NSW Government becoming the guarantor of up to $1 billion of new housing projects, bringing forward the construction of up to 15,000 extra homes over five years. 

“Small businesses facing cost pressures will feel there is little in this Budget for them, despite the six-month extension to the $150 energy bill relief. However, the government’s investment in skills development, innovation and infrastructure will help the state and many smaller businesses in the longer-term,” he said. 

Mr Ord said the government was also forecasting $744 million in additional tax revenue over four years, with Revenue NSW winning more funding to continue its tax integrity program. 

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