The NSW Government will hand down its 2026–27 Budget on Tuesday, with Treasurer Daniel Mookhey promising a focus on “relief for today, reform for tomorrow, and discipline always.”
While several pre-budget announcements have already been made, there has been limited direct support announced for small businesses and startups so far. However, the broader economic outlook and spending priorities provide some important insights into what business owners can expect over the coming year.
With NSW facing the prospect of an eighth consecutive operating deficit and revenue growth under pressure, the government is balancing cost-of-living support and infrastructure investment against the need for fiscal restraint. This may limit the likelihood of major business stimulus packages, although targeted measures could still emerge on budget day.
Here's what we know so far.
A Slower Economic Outlook
Economic growth in NSW is expected to slow to around 1% in 2026–27, down from 2.5% forecast in the state's previous mid-year update.
Higher interest rates, increased mortgage repayments and softer property market activity are weighing on household spending and state revenues. The government has already flagged an estimated $8 billion reduction in property-related tax revenue over the next four years, driven by lower stamp duty and land tax collections.
For small businesses, particularly those reliant on consumer spending, this signals a more cautious economic environment ahead.
Cost-of-Living and Energy Measures
While no business-specific energy relief has been announced, several measures could indirectly benefit small businesses.
The government has committed to providing zero-interest loans of up to $15,000 for eligible households to install solar batteries and other energy-saving upgrades. This is expected to create additional demand for electricians, installers and businesses operating within the renewable energy sector.
Further cost-of-living support is also expected, with a focus on long-term reforms addressing housing affordability and energy costs rather than one-off payments.
Transport and Infrastructure Investment
Significant investment in transport infrastructure continues to be a key focus.
Upcoming measures include:
Reduced daily and weekly Opal fare caps to lower commuting costs for public transport users.
A record $2.1 billion rail maintenance budget for Sydney Trains.
Additional funding to accelerate road upgrades around the new Western Sydney International Airport.
Further investment in new train carriages, supporting both transport capacity and local manufacturing opportunities.
For businesses operating in construction, logistics, transport and supply chains, these projects may create new opportunities over the coming years.
Housing and Construction Support
The housing sector remains a major priority, with several initiatives aimed at increasing housing supply and improving project viability.
Key measures announced include:
Expanded government-backed presale finance guarantees for eligible developments.
Changes to foreign investor stamp duty surcharges to encourage build-to-rent and retirement living projects.
Support for modern construction methods, including prefabricated and modular housing.
Funding to modernise NSW's building approvals system.
These initiatives could provide opportunities for builders, developers, construction suppliers and businesses servicing the property sector.
What's Missing So Far?
Just as important as what has been announced is what has not.
At this stage, there have been:
No dedicated small business support packages announced.
No proposed changes to NSW payroll tax thresholds or rates.
No new SME grant programs or business loan schemes flagged.
No specific startup, innovation or founder-focused funding commitments.
No targeted support measures for technology, advanced manufacturing, renewable energy or startup precincts.
While targeted initiatives could still appear when the full budget is released, the pre-budget announcements suggest the government's focus remains on infrastructure, housing and cost-of-living pressures rather than direct business assistance.
What Business Owners Should Watch For
When the full NSW Budget is released, small business owners and startup founders should pay close attention to:
Any payroll tax changes.
New grants or funding programs.
Startup and innovation initiatives.
Infrastructure projects relevant to their industry.
Workforce and skills development programs.
Housing and construction measures that may influence economic activity.
We'll be reviewing the full budget announcement and highlighting any measures that may impact small businesses, investors and growing enterprises across NSW.