New England North West businesses cautiously welcome the NSW State Budget 2025–26, which delivers modest cost relief and stronger signals for long-term economic recovery, regional infrastructure, and job creation.
Business NSW, New England North West Regional Director, Diane Gray, said that while the budget falls short of meaningful cost-of-doing-business relief, it sends the right signals for longer-term economic transformation.
“This budget reflects intent, but delivery will be critical. Businesses in our region continue to face unsustainable cost pressures, particularly around workers compensation, insurance, and payroll tax. Without urgent reform, many of our local enterprises will continue to feel the strain,” Ms Gray said.
Workers compensation reform remains a top priority, with the scheme’s $2.6 billion blowout driving a forecast 36% increase in insurance premiums over three years.
“We urgently need cross-party commitment to fix a broken system before it chokes small and medium businesses across rural NSW.”
However, Ms Gray said regional investment signals are encouraging:
- $27.3 million to establish the Future Jobs and Investment Authority will support economic transition in coal-reliant communities like Gunnedah and Narrabri.
- The extension of the $150 energy rebate to eligible small businesses offers short-term relief amid volatile operating costs.
- A 30% discount on battery storage systems from 1 July 2025 may improve regional energy resilience, especially for businesses impacted by grid instability.
- Over $4.2 billion for disaster recovery and regional hospital upgrades reflects the scale of challenge – and government recognition – facing regional communities.
The $3.4 billion investment in TAFE and workforce development, including residential construction, was also welcomed:
“A stronger pipeline of apprentices and skilled workers is vital to regional recovery. Our businesses are ready to employ, but we need more job-ready locals, not just incentives.”
While NSW Treasury has forecast a return to surplus in 2027–28, payroll tax remains a pressing concern. More than 52,000 NSW businesses are captured in the current net, including many in regional centres like Tamworth, Armidale and Moree.
“If the NSW Government is serious about jobs and investment, we need payroll tax reform that supports growth, not punishes it.”
The region also noted welcome wins for housing-enabling infrastructure and disaster resilience, including targeted water security funding and better mobile coverage on regional roads. Ms Gray called for continued collaboration with the NSW Government to ensure regional funding translates into local outcomes.
“We’ll keep working alongside government to turn budget intent into local impact and we need genuine co-design, clear timeframes, and delivery accountability.”
Media Release: Business NSW NENW
