2. Building for growth in regional NSW

Improving health services

High-quality and timely access to healthcare is critical for the health and wellbeing of regional communities.

This Budget brings the total regional health capital investment to $3.5 billion over the next four years, including:

• continuing the $330.0 million Eurobodalla Regional Hospital Redevelopment
• $220.0 million to support the future expansion and redevelopment of the Wollongong Hospital and Health Precinct, involving early and enabling works including site investigation, land acquisition and refurbishment works
• $23.1 million for the Dubbo Alcohol and Other Drug Residential Rehabilitation Centre to provide a safe and supportive environment where individuals can develop skills to cope and address the underlying causes of substance use, while maintaining a connection to their community when receiving care
• $20.2 million for the Forbes Hospital Operating Theatre Redevelopment to build a new contemporary operating theatre and supporting spaces, incorporating integrated and virtual care technology
• $7.5 million to increase the existing car parking capacity at the new Maitland Hospital.

The 2025-26 Budget also provides new investments to support delivery of health services across the State and in the regions, including:

• $836.4 million in 2025-26 for the Essential Health Services Package to support core health services and reduce overdue surgeries. It also funds the opening of new and upgraded hospitals including Gunnedah Hospital and the Statewide Mental Health Infrastructure Program
• $158.8 million to continue delivering three new regional helicopter bases to improve ambulance response times
• $83.8 million for a Maternity Care and First 2,000 Days Package that includes measures to grow and upskill the maternity workforce, and increase midwifery continuity of care and parenting support in regional areas
• $37.5 million to expand the mobile dental van program and other dental services for people in regional communities, First Nations people, disadvantaged children and communities with a high-risk of dental disease
• $15.4 million in 2025-26 to boost the community mental health workforce, enhance mental health support for young people with severe and complex mental illness and provide regional communities with mental health support
• $15.0 million in 2025-26 for operational expenses to address increasing costs of rural and regional transportation for the Royal Flying Doctor Service.

Strengthening our education system

Every child has the right to a world-class education to ensure they get the best possible start to life. The Government is rebuilding public education to ensure every child across New South Wales has access to high-quality education, regardless of location.

Investment by the NSW Government to address the teacher shortage crisis it inherited includes scrapping the wages cap, delivering a historic pay rise for teachers, reducing excessive administrative workload, making thousands of teachers permanent and valuing the profession.

This has led to schools in regional New South Wales starting the 2025 school year with 47 per cent fewer vacancies than the same time in 2023.

The new 10-year Better and Fairer Schools Agreement injects $10.4 billion of funding to New South Wales public schools over the next 10 years.

In the 2024-25 Budget, the NSW Government invested a record $1.4 billion in rural and regional schools to rebuild public education. In the past 12 months alone, 10 school upgrades have been delivered, while construction has commenced on a further five.

The 2025-26 Budget builds on this progress by investing $2.1 billion over the next four years to deliver new and upgraded schools across regional New South Wales, including:

• the rebuild of Willyama High School as a brand-new, world-class school
• a new primary school for the West Dapto area.

In addition to new and upgraded schools, the Government is continuing to deliver on its commitment to boost access to early learning through the delivery of 100 public preschools, with 49 to be built in the regions. Infrastructure tenders and planning approvals have started across all sites, with two due to open in 2025-26 at Hillvue and Taree Public Schools. The 2025-26 Budget funds an additional public preschool co-located within the new primary school at West Dapto.

This Budget also invests $10.0 million in 2025-26 to progress work on expanding the public provision of early childhood education and care in New South Wales.

Building skills

The 2025-26 Budget provides record funding for TAFE NSW, including in the regions, with investment increasing for the third successive year to $2.8 billion in 2025-26. This is critical to growing our skilled workforce.

This Budget includes funding for $480.4 million over four years for asset renewal and critical capital maintenance. This investment is on top of $215.9 million for 1,300 apprentices and trainees in local government, funded in last year’s Budget.

This record funding will support the delivery of high-quality education and training in the regions, and continued work to establish TAFE NSW Manufacturing Centres of Excellence in the Illawarra and Hunter/Newcastle. The Centres of Excellence, delivered in partnership with the Australian Government, will connect industry and education partners to deliver innovative microskills, microcredentials and Higher Apprenticeships.

Connecting regional communities through transport and roads

Transport networks and roads are critical to life in regional New South Wales, connecting communities and supporting the movement of goods produced in our regions to national and international markets.

The NSW Government is committed to ensuring that the roads and transport networks used by regional and rural communities daily are reliable and safe so people can travel to work, education and health facilities, visit family and friends, and keep our supply chains moving.

The 2025-26 Budget allocates funding for new projects and continues to deliver existing priorities. This includes the following, delivered in partnership with the Australian Government:

• $2.8 billion in road safety funding over four years, including for safety trials, intersection upgrades, and new barriers and medians, delivering on commitments in the 2026 Road Safety Action Plan
• $741.7 million over four years to continue the M1 to Raymond Terrace extension and Hexham Straight widening projects
• $680.5 million over four years to continue the Princes Highway Corridor Upgrade, including construction of the Milton Ulladulla Bypass, Jervis Bay Road intersection upgrade and Jervis Bay Road to Hawken Road upgrade, and safety and productivity upgrades
• $548.5 million over four years to continue construction of the Coffs Harbour Bypass
• $341.8 million over four years for the Wyong Town Centre upgrade
• $294.9 million over four years to continue construction of the Singleton Bypass
• $267.1 million over four years to continue major construction of the Mount Ousley Interchange
• $267.0 million over four years to fast-track the Muswellbrook Bypass
• $237.7 million over four years to continue delivery of new Dubbo Bridge, heavy duty pavement upgrades, intersection upgrades at Hargraves Lane and Federation Street connecting the Newell Highway, Oxley Highway and Castlereagh Highway
• $206.0 million over four years to develop and deliver grade separation road interfaces at two selected sites between Parkes and the Victorian border
• $115.0 million for the Terrigal Drive Upgrade
• $101.1 million over four years to continue improvements on the Barton Highway for road safety
• $100.0 million for the Westbound Overpass at the Maitland Roundabout
• $52.2 million for the Peak Hill Road Upgrade, Tooraweenah Road Upgrade, Central Coast Roads Package, Coreen Avenue and Coombes Drive Upgrades, Kurrajong Road Intersection Upgrade at Beech Road and Lyn Parade, and Coreen Avenue and Lemongrove Road Signals
• $50.7 million over four years to continue the upgrade of Avoca Drive in Kincumber
• $19.1 million over four years for the duplication of the Great Western Highway through Medlow Bath
• $5.7 million for heavy vehicle rest stops to combat driver fatigue (fully funded by the NSW Government)
• $3.0 million to continue the Regional Network East/West Upgrade Program to support freight movements and improve reliability on the regional rail network (fully funded by the NSW Government).

Supporting regional economic development

Having repaired the budget and with inflation coming down, our task now is to lay the foundation for future economic growth in regional New South Wales.

This Budget continues investing in transformational infrastructure to support growing populations in the regions, including:

• $322.5 million over the next four years to enhance digital connectivity, including $48.0 million to deliver improved mobile coverage on identified major highways in New South Wales (including $10.0 million Australian Government funding)
• $123.6 million for the Growing Regions Program to deliver community and economic infrastructure projects, funded by the Australian Government, to revitalise regions, and enhance amenity and liveability across regional and rural New South Wales
• $48.3 million for the Regional Precincts and Partnerships Program, funded by the Australian Government, to deliver precincts that are tailored to local needs and have a shared vision for how the precinct connects to its region
• $20.9 million to support regional councils to bring forward critical enabling infrastructure for new homes during the National Housing Accord period, by funding interest on loans.

To support the continued growth and sustainability of key industries, the Budget invests $45.0 million to support farmers and agribusinesses in the adoption of digital technology and on-farm connectivity solutions, to improve resource management, boost productivity and enhance water security.

The Government has also invested in:

• $50.0 million for the Regional Economic Development and Community Investment Program, supporting initiatives to promote regional economic development and job creation
• $15.0 million for airstrip improvements in rural and remote New South Wales
• $10.0 million for the Western NSW Workforce Activation Package, supporting early childhood education in the Far West
• $5.0 million for the Aboriginal Economic Development Package, supporting First Nations businesses
• $5.0 million for a low-interest loan program targeting food and beverage manufacturing businesses
• $2.0 million to extend the Western Air Services Subsidy, enabling commercial flights to Bourke, Walgett, Lightning Ridge and Cobar.

Laying the foundation for regional economic growth

Regional New South Wales is home to a wide range of businesses and industries, supporting jobs, fuelling economic development and presenting investment opportunities.

To support this, the NSW Government is delivering Special Activation Precincts, a series of world-class, sustainable business hubs that build on the competitive and industrial strengths of the regions in which they are located.

The precincts are designed to support strategic partnerships with investors with a focus on long-term success.

The four Special Activation Precincts in development are:

Parkes

This $332.2 million precinct takes advantage of Parkes’ proximity to the Inland Rail Project and Trans-Australia Railway to establish an efficient freight and logistics hub, and to facilitate the establishment of recycling and resource recovery, critical mineral processing, food manufacturing and renewable energy industries.

Moree

This $224.8 million precinct capitalises on the region’s existing agricultural industry, secure water resources and transport access by providing a new business hub specialising in high-value horticulture, agrifood processing, freight logistics and renewable energy.

Wagga Wagga

This $212.2 million precinct capitalises on the Inland Rail Project and existing Bomen Business Park, attracting renewables and recycling industries, advanced manufacturing, agribusiness, innovation and education, and freight and logistics industries.

Snowy Mountains

This $196.3 million precinct will support mixed housing supply and grow the region into an all-year-round tourism destination, focusing on tourism, recreation, commercial and residential businesses, while preserving the important environmental and heritage values of the Snowy.

Transforming our clean energy future

This Budget continues the Government’s investment in the Electricity Infrastructure Roadmap, transforming our electricity system to provide clean, reliable and affordable energy. The switch to renewable generation is at the core of the transition to net zero emissions, and is critical in supporting economic growth and job creation in the regions.

This Budget includes continued investment of $2.1 billion over the next four years in the Transmission Acceleration Facility, primarily to support the five Renewable Energy Zones at Central-West Orana, New England, Hunter-Central Coast, Illawarra and South West. This builds on $1.1 billion invested to date on these critical projects.

This investment has enabled the finalisation of arrangements for the delivery of the Central-West Orana Renewable Energy Zone transmission project, unlocking $20.0 billion in private investment into the Central-West Orana region by 2030, which will support more than 5,000 construction jobs at its peak.

To support the construction of the Central-West Orana Renewable Energy Zone, the 2025-26 Budget invests an additional $115.5 million to construct a logistics precinct at the Port of Newcastle, to facilitate storage and transportation of critical components. This project is expected to support around 90 construction jobs and 20 full-time positions once operational.

The Government is also committed to ensuring the benefits of Renewable Energy Zones are realised by local communities and is continuing the Community and Benefits Program. $128.0 million has been allocated to the communities which will host the Central-West Orana Renewable Energy Zone, with future funding for other Renewable Energy Zone host communities.