newy.com.au – The NSW Budget will keep billions of dollars in Hunter hospital, road and school projects moving, but much of the advertised $5.5 billion regional package is continuing expenditure rather than a single new funding injection.
The allocation combines spending in 2026–27, four-year commitments and the total value of major projects already under construction. Among them is the John Hunter Health and Innovation project, now valued at $890 million.
Budget papers show $735.4 million is expected to have been spent on the project by June 30, with $82.25 million allocated in the coming financial year and completion scheduled for 2029. Last year’s budget valued the project at $835 million, meaning its total estimated cost has increased by $55 million.
The $138 million Cessnock Hospital redevelopment and $45 million third stage of the Muswellbrook Hospital redevelopment were also included in last year’s budget.
Other health spending includes $1 million to plan future paediatric oncology services, $180 million for Manning and Forster–Tuncurry health services, $22 million for Maitland community and mental health services and $7.5 million for the Maitland Hospital car park.
The government says the Hunter projects form part of a statewide $10.3 billion health funding increase over four years, delivered with the Commonwealth, to recruit 9000 additional health workers and fund about 2900 more planned surgeries each year. Almost $3 billion of the state’s $11.9 billion health infrastructure program has been allocated to regional hospitals and facilities.
One of the clearer new Hunter commitments is $14 million for planning and development work at Broadmeadow. The broader 30-year strategy for the 313-hectare precinct envisages as many as 20,000 homes, 40,000 residents and 15,000 jobs, although the budget allocation is for planning rather than construction of the proposed entertainment centre or major enabling infrastructure.
The budget also contains an undisclosed provision for a possible government support arrangement for the Tomago aluminium smelter, one of the region’s major industrial employers.
The smelter’s owners have contemplated closure after the current electricity contract expires in December 2028, with power accounting for more than 40 per cent of operating costs. The size of the NSW contribution has not been published because negotiations involving the state, Commonwealth and smelter are continuing.
Road spending includes $390.5 million to complete the M1 extension to Raymond Terrace, $258.2 million to continue the Muswellbrook Bypass and $119.1 million to complete the Singleton Bypass.
A further $90 million has been allocated to upgrade the M1 Pacific Motorway between Wahroonga and Beresfield, while the budget provides $87.4 million towards the Nelson Bay Road upgrade, $39.5 million for the Thornton Rail Bridge duplication and $38.8 million to complete the Rankin Park to Jesmond section of the Newcastle Inner City Bypass.
Other transport commitments include $20 million for Hillsborough Road upgrades, $12.1 million for Speers Point intersection and network improvements and $9.6 million to continue planning for a future John Renshaw Drive upgrade. More than 100 additional weekly bus services are also planned across the Hunter.
The Hunter Joint Organisation, representing the region’s councils, described the result as mixed. It welcomed the major road projects and the transfer of Rural Fire Service fleet costs from councils to the state, but said the budget had not delivered sustainable long-term funding for council-maintained roads.
The organisation also questioned a new $6.5 million allocation for the Future Jobs and Investment Authority, noting the previous budget had committed $27.3 million over four years and saying communities still wanted details about what had been delivered and how earlier funding had been spent.
School spending includes new primary and secondary schools at Huntlee, a primary school and co-located early learning facility at Chisholm and a new public high school at Medowie. Maitland Grossmann High School and Thornton Public School will be rebuilt, while early learning facilities are planned at Cessnock East and Muswellbrook.
The budget also continues work on the Net Zero Manufacturing Centre of Excellence at TAFE NSW Tighes Hill and upgrades to trades training at TAFE Muswellbrook. The government says 13 public preschools and seven schools are under construction in the Hunter, while 7199 teachers in the region are receiving a pay rise.
Other regional commitments include $530 million for the Belmont desalination plant, $73.1 million for repairs to Hunter flood-management assets and $2.4 million this year for sand nourishment and rehabilitation at Stockton Beach. The budget also provides $4 million for remediation at Walka Water Works and continues the $3.7 million Hunter Regional Livestock Exchange project in Singleton.
Household measures include a one-year $100 reduction in private vehicle registration, or $80 for motorcycles, and a $1000 cost-of-living payment for more than 120,000 NSW Government employees after Sydney inflation exceeded the relevant wages policy threshold.
The statewide weekly toll cap will fall from $60 to $50 for 2026–27, toll administration fees will be permanently abolished from July and Opal fares will remain at 2025 prices for another year.
A $557.1 million Home Energy Saver program will provide zero-interest loans of up to $15,000 to eligible homeowners and landlords with household income of up to $210,000. Discounts of up to $4000 will be available to eligible homeowners and renters earning up to $80,000 or holding an eligible concession card.
The program can support solar panels, batteries, insulation, efficient hot-water systems, air-conditioning, induction cooking and glazing. Loan applications have opened, while the discount component is yet to begin.
Minister for the Hunter Yasmin Catley said the budget delivered infrastructure and household assistance across the region.
“The Hunter is not asking for special treatment. We are asking for our fair share, and this Budget delivers it: better hospitals, better schools, better roads and real cost-of-living relief for local families,” she said.
“We are delivering relief today, reform for tomorrow, and the discipline needed to secure the future of NSW.”
The spending comes as Treasury forecasts real NSW economic growth of 1 per cent in 2026–27, down from the 2.5 per cent forecast at the half-year review. The state is projected to record a $2.3 billion deficit before returning to a $1.1 billion surplus in 2027–28, while higher interest rates are expected to reduce property-tax
