NSW budget fails to deliver boost for business, says Business NSW

The NSW government has handed down its 2026–27 budget, announcing a number of cost-of-living measures, including a $561.4 million transport affordability package.

The budget contained a broad set of ongoing concessions, rebates and fee-relief programs that the government said would reduce everyday costs for renters, families, pensioners, students, apprentices and concession-card holders.

Business NSW said that while the budget did include some measures to support businesses, it could have gone much further, with business confidence currently at record lows.

The NSW government announced a two-year workers' compensation premium freeze, which will result in 340,000 businesses avoiding a combined $4.1 billion extra in forecast premium increases.

The budget also increased funding for the Local Jobs First Commission by $6.4 million, which aims to give SMEs better access to $40 billion in government contracts.

It also contained a $200 million package to support industry and advance domestic manufacturing capabilities.

Business NSW chief executive Daniel Hunter said while these changes were welcomed, the government could have done more to deliver direct relief to businesses.

Hunter said that key business-friendly opportunities were missed, including the absence of any payroll tax relief and the failure to abolish the Emergency Services Levy, and the limited funding – less than $10 million per year – for a new business advisory service following the closure of Business Connect.

“The Government is expecting to collect an additional $1 billion in payroll tax – or about $25,000 per eligible business – pushing more of the tax burden onto employers at a time they can least afford it,” he said.

The announcement and funding of a new business advisory service were welcomed by the business body; however, it warned that additional funding was needed.

With less than a year until the next state election, Hunter said businesses will be looking for a clear signal that the NSW government prioritises businesses.

Business NSW has called on the government to cut payroll tax from 5.45 per cent to below 5 per cent and to increase the payroll tax threshold to above $1.2 million.

It also wants to see the emergency services levy cut, which currently adds 23 per cent to general business insurance premiums and a stronger Business Connect 2.0 program, with funding doubled to $20 million per year.