The 2026–27 NSW Budget delivers a number of significant investments across the Hunter. While these investments are welcome, they present a mixed result compared with the major economic transformation occurring in coal mining regions such as ours, and the dedicated focus it deserves as the global decline in coal demand is expected to reduce as the globe transfers to renewable energy sources.

Economic diversification and regional transformation

The announcement of $6.5 million in the 2026–27 Budget to establish the Future Jobs and Investment Authority raises important questions about progress made since the previous budget.

The 2025–26 NSW Budget allocated $27.3 million over four years to establish and operationalise the Future Jobs Investment Authority, with a specific focus on supporting economic transition in the Hunter and Central West regions. Twelve months later, communities are still seeking clarity on what has been delivered, what outcomes have been achieved, and how the previously allocated funding has been invested.

While continued funding demonstrates an ongoing commitment to the Authority, the Hunter community needs to see tangible outcomes rather than repeated announcements. With more than $3 billion in coal royalties expected to be collected by the State this year, regional communities undergoing economic transition are entitled to expect clear timelines, transparent reporting and visible progress.

Housing supply and enabling infrastructure

The budget contains several initiatives aimed at increasing housing delivery aligned to our advocacy priorities, including:
$32.3 million over four years to modernise the building approvals system and establish a Modern Methods of Construction (MMC) Regulatory Framework, designed to reduce construction costs, improve efficiency and support greater uptake of prefabricated and modular housing.

However, challenges remain for regional councils. The budget allocates $20.9 million statewide to cover interest costs on loans for enabling infrastructure, but councils must still take on the principal debt. This falls short of calls for direct infrastructure funding to unlock housing growth.

Sustainable local road funding and transport connectivity

The budget includes substantial investment in major state-managed transport infrastructure, including:

• $390.5 million for the M1 Extension to Raymond Terrace
• $258.2 million for the Muswellbrook Bypass
• $119.1 million for the Singleton Bypass
• $145.3 million for the Newcastle-to-Dubbo REZ freight corridor
• $100 million for the Maitland Westbound Overpass
• $87.4 million for Nelson Bay Road upgrades
• $39.5 million for the Thornton Rail Bridge duplication

Additional funding will support more than 100 new weekly bus services across the Hunter.

While these projects will improve regional connectivity and freight efficiency, the budget does not address one of local government’s most significant advocacy priorities, long-term reform of local road funding and road re-categorisation. Councils remain responsible for maintaining increasingly important transport routes without additional sustainable funding support.

Local government financial sustainability

A significant win for councils is the NSW Government’s commitment of $470.1 million over ten years to assume responsibility for the NSW Rural Fire Service fleet, ensuring the organisation that operates the fleet also holds legal ownership and financial responsibility.

This reform removes a long-standing example of cost shifting by eliminating the requirement for councils to carry RFS vehicles on their balance sheets and absorb associated depreciation costs. Statewide, this is expected to relieve councils of approximately $145 million annually in depreciation expenses, freeing up resources for local services and infrastructure.

Despite this positive step, broader financial sustainability challenges remain including Waste Levy reform, greater revenue flexibility and reductions in administrative burden were not addressed.

Water security and regional resilience

The budget delivers a major commitment to water security through:

• $530 million for the Belmont Desalination Plant.
• $1.9 million statewide to strengthen emergency response capability and improve the resilience of local water utilities.

At present, water/sewer infrastructure that is impacted by disasters is not eligible for the Federal Government’s disaster funding, so the budget allocation from NSW Government is welcomed and aligns to our advocacy priority  These investments recognise the importance of water security for growing regional communities and support the Hunter’s long-term resilience in the face of increasing population growth and climate pressures.

The Hunter welcomes these investments and the recognition of our region’s importance to NSW. However, our advocacy remains focused on securing the structural reforms, enabling infrastructure and economic diversification investments needed to support the region’s future growth and prosperity.