Investing in the future of regional NSW

Delivering essential services

Healthier regional communities

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 $3.0 billion over the next four years, including:

• Continuing the $828.9 million new Shellharbour Hospital and integrated services.
• Continuing the $330.0 million Eurobodalla Regional Hospital redevelopment.
• Continuing the $200.0 million Bathurst Hospital redevelopment. 
• Continuing the $138.0 million Cessnock Hospital redevelopment.

Patients across NSW will benefit from a historic $10.3 billion increase in health funding, delivered with the Australian Government, to grow the health workforce, expand hospital capacity and meet rising demand. This will deliver:

• 9,000 more health workers
• capacity for an extra 33,000 emergency department presentations each year
• 2,900 extra planned surgeries each year
• $20.4 million over four years for post-operative care for children with cochlear implants.

This includes:

• The largest pay increase for nurses and midwives in more than two decades with a further $2.9 billion for higher wages and improved conditions.
• A $147.5 million boost to the high cost, highly specialised therapy program.
• More flexible staffing across the health system through $26.5 million for the NSW Health Locum Agency.
• Easier and cheaper access to the oral contraceptive pill through $4.5 million to allow eligible pharmacists to prescribe it directly for women over 18.

A future of healthcare package will reduce pressure on clinicians, improve patient flow and scale health innovations, including:

• $38.7 million to implement AI scribe technology for 6,000 clinicians.
• $35.7 million for an Aged Care Reform package to free up beds across the state.
• $3.0 million in seed funding to support a health innovation pipeline.

Mental health funding is a priority of this government and this Budget includes:

• Critical mental health and suicide prevention services maintained statewide worth $64.8 million, in partnership with the Australian Government.
• Immediate crisis support through Lifeline services funded with $43.3 million.
• Stronger mental health peak bodies and community-managed services with $4.3 million, to support consumer, carer and community voices.

The Budget also continues the historic investment in new and upgraded hospitals across regional NSW with:

• An additional $67.4 million to continue delivering three new helicopter bases.
• $9.9 million for robotic surgery research and capability at Orange Health Service.
• $1.0 million to plan for future paediatric oncology services in Hunter New England and the North Coast.
• $71.7 million for Isolated Patients Travel and Accommodation Assistance.
• New maternity unit at Grafton Hospital worth $20.0 million.

Transforming lives through learning

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 NSW 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 significant pay rise for teachers, reducing excessive administrative workload, and making 7,900 regional teachers permanent and valuing the profession.

There were 61 per cent fewer teacher vacancies in regional NSW on Day 1, Term 1, 2026, compared to the same time in 2023.

Four school upgrades have been delivered in the past 12 months alone for regional NSW. Since March 2023, 20 school upgrades have been delivered, and work is underway on a further 33 schools in regional NSW

In last year’s Budget, the government invested $2.1 billion over four years to deliver new and upgraded schools across regional NSW, 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 the 100 public preschools commitment, with 48 complete or under construction in the regions.

These preschools are progressing rapidly in readiness for all to be open for the start of the 2027 school year.

The NSW Budget is also investing $4.9 million to deliver 176 additional childcare places in high need locations in Western NSW including in the Carrathool, Hay and Warrumbungle shires.

The 2026–27 Budget invests in co-located public early learning at the following regional primary schools:

• Cessnock East Public School
• Eden Public School
• Inverell Public School
• Muswellbrook Public School
• new Cooranbong public school
• new Googong West public school
• new Chisholm public school.

This Budget also invests:

• $3.4 billion in skills and TAFE to help people get ahead and into great jobs. This includes funding to continue to rebuild TAFE across NSW with a $233.2 million capital investment in campus upgrades, maintenance and revitalisation.
• $15.0 million to extend the AgSkilled program for another three years, securing the future of the NSW agricultural workforce.

Strengthening our housing system

The regional NSW housing market remains constrained, with tight vacancy rates, rental stress and ongoing affordability pressures. The government is continuing to protect renters through the following initiatives:

• Rental reforms are providing renters with greater security and stronger protections. This includes providing fee-free ways to pay rent, prohibiting no-grounds evictions, banning fees for background checks, limiting rent increases to once a year and making it easier to have pets in rentals.
• This is supported by investment in NSW Fair Trading’s Rental Taskforce, established in February 2025 to ensure renters get advice earlier, resolve issues faster and have greater confidence that rental protections are being actively enforced.
• From mid-2026, Smart Rental Bonds will allow tenants to digitally transfer a bond from their current rental property to a new rental property. This system means renters will no longer have to find thousands of dollars for a second bond while waiting for the previous bond to be refunded, providing cost-of-living relief for renters when moving.

The government continues to support first home buyers in regional NSW:

• The First Home Buyers Scheme provides a transfer duty exemption on home purchases valued up to $800,000, and a concession on purchases between $800,000 and $1 million. Since 1 July 2023, the government has provided $775.0 million to regional first home buyers in transfer duty concessions.

The 2026–27 Budget also provides new investments to support delivery of housing services across NSW and in the regions, including:

• $24.9 million to improve the planning system and support housing delivery.
• $32.3 million for the Building Commission to fund:
  • an improved building approvals system for the NSW Planning Portal
  • a Modern Methods of Construction Regulatory Framework to decrease cost of construction
  • pilots of enhanced dispute resolution and trialling AI to streamline licensing.

Building for growth in regional NSW

Stronger transport links for regional communities

Transport networks and roads are critical to life in regional NSW, connecting communities, and supporting freight movement in our regions to national and international markets.

The government is committed to ensuring 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 2026–27 Budget allocates funding for new projects:

• $910.9 million to restore local and state roads, and other essential public assets damaged by natural disasters. 
• $100.0 million to upgrade the Canberra to Sydney rail corridor (funded by the NSW, ACT and Australian governments).
• $90.0 million for the M1 Pacific Motorway upgrade from Wahroonga to Beresfield.
• $50.0 million additional funding for the Barton Highway upgrade (in partnership with the Australian Government).
• $30.0 million to plan upgrades to the M1 Pacific Motorway from Tweed Heads to Byron Bay (in partnership with the Australian Government).
• $15.0 million for wheelchair accessible taxis. 

The government continues to deliver on existing priorities, including the following 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 NSW Road Safety Action Plan.
• $1.2 billion over four years to continue the Princes Highway corridor upgrade, including construction of the Milton Ulladulla bypass, Jervis Bay Road intersection upgrade, Jervis Bay Road to Hawken Road upgrade, and safety and productivity upgrades.
• $390.5 million over four years to continue the M1 to Raymond Terrace extension.
• $331.6 million over four years to commence construction for the Wyong Town Centre upgrade.
• $302.5 million over four years to continue the Newell Highway corridor upgrade, including delivery of the new Dubbo Bridge, heavy-duty pavement upgrades, intersection upgrades at Hargraves Lane and Federation Street connecting the Newell, Oxley and Castlereagh highways.
• $258.2 million over four years to fast-track the Muswellbrook bypass.
• $234.4 million over four years to develop and deliver grade separation road interfaces at Harris Gates and Tichborne.
• $227.3 million over four years to complete the Coffs Harbour bypass.
• $186.1 million over four years to continue major construction of the Mount Ousley interchange.
• $126.3 million over four years to continue improvements on the Barton Highway for road safety.
• $119.1 million over four years to continue construction of the Singleton bypass.
• $108.2 million over four years for the Terrigal Drive upgrade.
• $81.0 million over four years for the westbound overpass at the Maitland roundabout.
• $39.2 million over four years to continue the upgrade of Avoca Drive in Kincumber.
• $39.0 million for 10 local council projects and four state projects under the Australian Government’s Safer Local Roads and Infrastructure program.
• $29.7 million for heavy-vehicle rest stops to combat driver fatigue (fully funded by the NSW Government).
• $4.8 million to continue the Regional Network East–West Uplift program to support freight movements and improve reliability on the regional rail network (fully funded by the NSW Government).

Supporting regional economic development and the net zero transition

NSW has the largest and most diverse regional economy of all Australian states, with growth driven by industries including agribusiness, resources and mining, defence, tourism and hospitality, freight and logistics, healthcare and social assistance, and education and training.

The net zero transition is a priority of this government, and we have invested:

• Up to $77.0 billion in private investment supported through the Electricity Infrastructure Roadmap, supporting thousands of construction and ongoing jobs across regional NSW. 
• $291.4 million in 2026–27 for the Regional Corridor Upgrades program which will make roads safer and more efficient, improve connectivity, freight and productivity, and support the transportation of oversize components to renewable energy zones (REZ), including:
  • $120.0 million for Euston to Tocumwal, supporting the South West REZ
  • $8.1 million for Muswellbrook to Armidale (Phase 1), supporting the New England REZ
  • $145.3 million for Newcastle to Dubbo (Phase 2; Phase 1 was funded in the 2025-26 Budget), supporting the Central West Orana REZ
  • $18.0 million for Muswellbrook to Armidale (Phase 2), supporting the New England REZ.
• $224.8 million to accelerate delivery of network infrastructure to support up to 2.5 gigawatts of renewable energy generation and storage in the South West REZ.
• $18.7 million for additional resources to implement the recommendations of the Transmission Planning Review, including establishing Energy Corporation of NSW as the state’s jurisdictional planner.
• $14.0 million over two years to address critical infrastructure to support delivery of renewable energy zones.
• $6.5 million to establish the Future Jobs and Investment Authority to support the long-term economic security for coal-producing communities. Legislation is expected during 2026–27. An additional $22.5 million will be invested into a statutory fund to support services, projects and programs that align with the objectives of the legislation.

The government has also invested in building for future economic growth in regional NSW including:

• $153.9 million to support regional communities through the Regional Development Trust.
• $41.0 million to improve access and increase amenity to invigorate the Gosford waterfront area, bringing the total investment to $49.5 million.
• $26.8 million to deliver Creative Communities Policy commitments and art sub‑sector strategies, including First Nations programs and the Plan for Regional Arts.
• $4.1 million to support the Rural Women’s Network.
• Better fuel price transparency through $2.6 million to upgrade FuelCheck and enforce accurate fuel price reporting.

Empowering First Nations regional communities

Regional and rural NSW is home to many First Nations peoples and holds significant cultural, historical and spiritual importance. The 2026–27 Budget includes $154.2 million to support First Nations communities and build upon previous funding to improve outcomes across NSW.

This Budget includes a further investment in Closing the Gap, with $45.3 million of new funding, including investment in regional and rural First Nations communities:

• $11.8 million to provide culturally safe legal and support services in Moree and Dubbo to Aboriginal families at risk of out-of-home care.
• $10.7 million to support the first phase of implementation of the NSW Aboriginal Water Strategy, including grants and specialist advice to increase Aboriginal ownership of water.
• $9.3 million to co-design, implement and evaluate culturally safe mental health care models across NSW.
• $3.0 million to fund one-off projects developed by local Aboriginal community organisations and deliver scalable community-led solutions.

$96.7 million will improve land, water and housing outcomes for First Nations people in NSW, including:

• $74.9 million for continued implementation of commitments in native title Indigenous land use agreements by the government.
• $5.0 million to plan future investment to improve housing, infrastructure and living standards in discrete Aboriginal communities.

Strengthening biosecurity and primary industries

Biosecurity is critical for safeguarding primary industries and regional economies across NSW. The NSW Government plays a central role in managing and responding to biosecurity threats to safeguard agricultural businesses, the environment and communities across the state. The 2026–27 Budget includes:

• $16.3 million to continue broadscale control programs targeting feral pigs and support priority regional pest management efforts across the state.
• $6.0 million for Soil Conservation Services to continue its fleet upgrade program to replace end-of-life heavy machinery, including bulldozers and other plant equipment.
• Delivery of drought support with business planning, coaching and capability building through the Farm Business Resilience program, in partnership with the Australian Government.
• Continuing the $100.8 million program to upgrade primary industries critical research facilities, and support research and development capabilities.
• Continuing the $100.0 million investment in the state’s critical biosecurity functions to mitigate risks to community, industry and the environment.

Disaster response and the environment

Protecting the environment and disaster preparedness and response are key priorities for this government. The 2026–27 Budget includes environmental measures to manage increasing pressures, including from natural disasters, to ensure resilient ecosystems:

• $910.9 million to restore local and state roads, and other essential public assets damaged by natural disasters.
• $195.2 million to deliver a landscape‑scale, integrated approach to threatened species conservation to support ecosystem recovery across NSW.
• $26.0 million to prepare for implementation of the NSW Plan for Nature and commence ecosystem restoration activities.
• $17.7 million to extend emergency alert system contracts and to transition to the national AusAlert emergency warning system.
• $13.7 million for RSPCA and Animal Welfare League enforcement of the Prevention of Cruelty to Animals Act 1979 and to establish the Office of Animal Welfare.
• $1.9 million to strengthen emergency response capability and improve the resilience of local water utilities, ensuring safe and reliable drinking water for regional communities across NSW.
• Enhance bushfire and emergency response to better protect communities by transferring ownership and management of the state’s red fleet from councils to the NSW Rural Fire Service, while maintaining the state’s partnership with councils.
• $470.1 million over 10 years for the transfer of the state’s rural firefighting fleet from local councils to the NSW Rural Fire Service.

Growing creative industries, tourism and sports sectors

Building on the state’s rich and diverse cultural landscape is our approach to showcase the arts, culture and creative industries of the regions. This will be achieved by integrating government, industry, community and the creative sector to build partnerships, strengthen investment and enable sustainable growth.

The 2026–27 Budget continues investing in our vibrant, skilled artistic and sporting communities to support the growth of the region’s creative industries and sports sectors, including:

• $29.3 million to support the NSW contemporary music sector.
• $26.8 million to deliver Creative Communities Policy commitments and art sub‑sector strategies, including First Nations programs and the Plan for Regional Arts.
• $17.0 million to support collaboration across art forms, and develop new exhibitions and events.
• $7.0 million to continue support for State Sporting Organisations.

Amplifying the regional NSW visitor economy is another key strategy to promoting sustainable growth and development, and will be supported by:

• $130.0 million to maintain and renew national park visitor infrastructure to keep facilities safe and open across NSW.
• $25.0 million for the Office of the 24‑Hour Economy Commissioner to drive a safe and thriving night-time economy, supporting local jobs and local businesses, including in regional NSW.

Ensuring community safety

Community safety and wellbeing in regional and rural communities is a key priority for the government. This begins with public and recreational spaces that are safe and enjoyable for all. The 2026–27 Budget provides investment to address crime, recidivism and community safety.

• $179.1 million to invest in the Public Safety Network to improve coverage and reliability for emergency services communications.
• $8.5 million to establish an independent Victims of Crime Commissioner to advocate for victims of crime.
• $3.8 million in 2026–27 to maintain delivery and momentum of the Short-Term Remand program, which delivers non-custodial interventions that are more effective in reducing recidivism and improving life outcomes for young people and communities.
• $2.5 million in 2026–27 to support recruitment-focused communications and marketing to attract new police recruits and increase the numbers of operational police.
• $2.2 million to coordinate regional youth crime services.