NSW Budget 2026-27 handed down. Here’s what small businesses, workers and households are getting.
The NSW Budget 2026-27 has landed with record health spending, a workers comp premium freeze and a new small business advisory program. Here is who wins and who misses out.
The winners
Employers and businesses with workers compensation exposure are among the clearest winners in this Budget. The government has legislated workers compensation reforms, including a two-year premium rate freeze, avoiding $4.1 billion of forecast insurance cost growth. This helps the 340,000 employers covered by the insurer. For small businesses carrying workers compensation costs as a fixed overhead, avoiding that forecast cost growth over two years is material relief.
Commuters and transport users benefit from a significant affordability package. The Budget includes $100 off rego, a $50 toll cap, and 2025 priced Opal fares as part of a 12-month Transport Affordability Package totalling $561.4 million. For business owners and employees commuting in Sydney, the toll cap in particular addresses one of the more persistent cost pressures in the city.
The construction and renewable energy sectors receive a substantial investment signal. Up to $77 billion in private investment is supported through the Electricity Infrastructure Roadmap, supporting thousands of construction and ongoing jobs across regional NSW. Businesses in civil construction, electrical contracting, and related trades are well positioned to benefit from the infrastructure pipeline this investment supports.
Western Sydney businesses and communities receive targeted attention. The Budget continues the government’s investment in Western Sydney, with $4.1 billion for schools, $3.8 billion for hospitals and $3.5 billion for transport infrastructure and roads. That infrastructure spend creates downstream commercial activity for businesses operating in the region across construction, professional services, and logistics.
Businesses affected by the Great Western Highway closure receive direct assistance. Support for businesses affected by the Great Western Highway closure comes through a $3.6 million assistance package, including grants, concierge services and tourism support.
Regional NSW receives substantial investment in hospitals and schools. The Budget includes $3.0 billion for regional hospitals and health facilities, $2.3 billion to deliver new and upgraded schools in the regions, and $910.9 million to restore roads damaged by natural disasters. For businesses in regional areas, road restoration in particular has direct operational impact on supply chains and transport costs.
Small business specifically
The Budget’s most direct measure for small businesses is a new advisory program. A $37.0 million small business advisory program will succeed Business Connect. Business Connect has been a widely used free advisory service for NSW small businesses. The successor program continues that support, though the detail of what changes under the new model is not yet fully outlined in the Budget overview.
A new Local Jobs First Commission is also being established. For the first time in NSW, a new Local Jobs First Commission will support the government to prioritise local workers and businesses in government procurement, backed by $6.4 million in funding. For small businesses that supply goods or services to government, this commission could create meaningful new procurement opportunities over time.
Investment attraction is also being supported. Faster delivery of investment projects comes through $2.9 million for targeted Investment Delivery Authority rounds and regulatory support.
Public sector workers receive direct cost-of-living relief. A $1,000 cost-of-living payment will be provided for more than 120,000 NSW Government employees, because annual growth in the Sydney consumer price index exceeded 4 per cent between the March quarter 2025 and 2026.
First home buyers continue to receive support. The average support received by 94,000 first home buyers since 2023 has been $20,400, with around 30,000 more likely to benefit in 2026-27.
Energy costs are addressed through a household-focused program. $557.1 million has been allocated for households to access energy-saving technologies, including $480.0 million in interest-free loans and $77.1 million in discounts. For small businesses operating from residential premises or with high household energy costs, the interest-free loan component may also be relevant depending on eligibility criteria.
What is missing
The Budget’s business measures are largely focused on large-scale infrastructure investment, sectoral programs in renewable energy and manufacturing, and workforce support for the public sector. For small businesses outside the sectors receiving direct investment, the core relief is the workers compensation freeze and the successor to Business Connect. There is no broad-based tax relief, no specific measure addressing the cost pressures facing retail, hospitality, or professional services small businesses beyond the advisory program, and no payroll tax relief or threshold adjustment mentioned in the overview.
The $37 million small business advisory program is welcome but its design and reach will determine its impact. Business Connect served tens of thousands of NSW small businesses annually. Whether its successor maintains that scale and accessibility is a question the detail of the program will need to answer.
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