Treasurer Daniel Mookhey is set to present his third state budget for New South Wales (NSW) on June 24, 2025, focusing on critical areas such as housing, education, and public safety.

As the largest economy among Australian states, NSW operates with an annual budget of $120 billion, making its fiscal decisions impactful on both national and global levels.

Despite the state's significant budget, NSW has not achieved a surplus since the 2018-19 budget under the previous government, and projections indicate another deficit this year, although a small cash surplus may be possible.

This year's budget is expected to reflect fiscal restraint amid ongoing financial pressures, including increased relief payments following natural disasters.

To tackle educational needs, the budget allocates $9 billion over four years for school infrastructure, with $2.6 billion earmarked for the upcoming financial year to build new schools and upgrade existing facilities.

In health, the budget includes a significant investment of $492 million for a new NSW Health Pathology Statewide Hub in the Westmead Health Precinct, aimed at enhancing medical research and pathology services.

Additionally, funding for agriculture and biosecurity will increase by $140 million, bringing the total to over $1.05 billion to improve biosecurity measures and research in primary industries.

A key focus of the budget will be addressing the ongoing housing crisis in NSW, particularly following the failed sale of the Rosehill racecourse for new housing developments.

The justice system will also benefit from a $227 million investment, which will fund corrections facilities, court upgrades, and additional legal staff for prosecutions.

The budget plans to extend tax concessions for build-to-rent housing, allowing owners to benefit from a 50% land tax concession indefinitely, thereby enhancing investment feasibility.

Moreover, the budget allocates $452 million to enhance public transportation, including funding for additional bus services and the introduction of new 'bendy' buses.

Finally, the budget designates $835 million for infrastructure improvements around the new Western Sydney Airport, which includes road enhancements and additional funding for the Bankstown Hospital project, totaling $2 billion.