newy.com.au – Hunter mayors have welcomed major commitments in the 2026–27 NSW Budget but warned the package does not go far enough to prepare coal-producing communities for economic change.
The Hunter Joint Organisation said the Budget recognised the region’s importance through spending on health, water security, transport infrastructure and regional development, including the John Hunter Health and Innovation Precinct, Belmont Desalination Plant, major road projects and public transport improvements.
But the organisation, which represents councils across the Hunter and MidCoast, said the investment was a mixed result when measured against the scale of the transition facing communities exposed to changes in global energy markets.
HJO chair and Singleton mayor Cr Sue Moore said the Hunter remained central to the NSW economy but needed a stronger long-term response.
“The Hunter continues to be a powerhouse of the NSW economy, yet our communities are navigating significant structural change as global energy markets evolve,” Cr Moore said.
“While we welcome substantial infrastructure investment, the budget does not yet match the scale of the economic transition challenge facing coal-producing regions such as the Hunter.”
The organisation said the Budget did not provide new measures for the Hunter as councils modelled 12,000 job losses across the region over the next four years. It also raised concerns about the Future Jobs and Investment Authority, after $27.3 million was allocated over four years in the previous Budget to establish and run the authority with a focus on supporting the Hunter’s economic transition.
HJO said communities were still seeking clearer information about what had been delivered, and argued the $6.5 million allocated in the new Budget to establish the authority was unlikely to create jobs, support businesses or attract investment while the bill remained before Parliament.
Muswellbrook mayor Cr Jeff Drayton said the issue was already affecting his community.
“Muswellbrook Shire is ground zero for Australia’s energy transition. The closure of coal mines and power stations is not a distant prospect, it is already reshaping our economy, our workforce, and our community’s future,” Cr Drayton said.
“We are running out of time, this budget does nothing to progress the needs of our community.”
“With more than $3 billion in coal royalties expected to be collected by the State this year, regional communities deserve clear timelines, transparent reporting and visible progress on economic diversification.”
Port Stephens mayor and HJO deputy chair Cr Leah Anderson said the Budget was a missed opportunity to accelerate projects with regional support and established business cases, including Newcastle Airport’s airfreight capability and strategic tourism infrastructure.
“Projects such as Newcastle Airport’s airfreight capability and strategic tourism infrastructure are exactly the types of investments that can help diversify the Hunter economy, attract private investment and create new jobs as our region transitions,” Cr Anderson said.
Newcastle Lord Mayor Cr Gavin Morris said targeted investment could help the region build on its freight, logistics and visitor economy potential.
“The Hunter has all the ingredients to become a nationally significant freight, logistics and visitor economy hub, but without targeted government investment we risk missing opportunities to leverage our strategic assets and competitive advantages,” Cr Morris said.
“These projects are not just about growth. They are about creating new industries and employment pathways that support communities through economic transition and ensure the Hunter remains a major contributor to the NSW economy long into the future.”
HJO welcomed housing measures in the Budget, including $32.3 million over four years to modernise the building approvals system and establish a Modern Methods of Construction Regulatory Framework aimed at reducing construction costs and speeding up housing delivery.
However, it said growth councils still faced major infrastructure funding barriers. The Budget allocates $20.9 million statewide to cover interest costs on loans for enabling infrastructure, but councils would remain responsible for principal debt.
“We continue to advocate for direct infrastructure investment that unlocks housing supply rather than increasing debt burdens on local councils,” Cr Anderson said.
The Budget also includes significant transport spending in the Hunter, 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 Renewable Energy Zone freight corridor, $100 million for the Maitland Westbound Overpass, $87.4 million for Nelson Bay Road upgrades and $39.5 million for the Thornton Rail Bridge duplication.
More than 100 new weekly bus services are also planned across the region, but HJO said the Budget did not address long-running calls for local road funding reform and road recategorisation.
“Councils continue to maintain increasingly important transport corridors that support regional growth and freight movement, yet the funding framework has not kept pace with these responsibilities,” Cr Moore said.
The mayors welcomed the NSW Government’s $470.1 million commitment over 10 years to assume responsibility for the NSW Rural Fire Service fleet, describing it as a practical reform to reduce cost shifting onto councils. HJO said the change was expected to remove about $145 million in annual depreciation costs from council balance sheets across NSW.
“This is a practical reform that local government has advocated for over many years and demonstrates what can be achieved when governments work together to address cost shifting,” Dungog mayor Cr Digby Rayward said.
HJO said broader financial sustainability issues for councils remained unresolved, including Waste Levy reform, greater revenue flexibility and reducing unnecessary administrative burdens.
The organisation also welcomed the $530 million commitment to the Belmont Desalination Plant as a major investment in the Hunter’s future water security, along with $1.9 million statewide to strengthen emergency response capability and improve the resilience of local water utilities.
Lake Macquarie mayor Cr Adam Shultz said water infrastructure was critical to the region’s future.
“Water security is fundamental to supporting population growth, economic development and community resilience across the Hunter,” Cr Shultz said.
Cr Moore said HJO would continue advocating for the reforms and investment needed to support the region’s long-term prosperity.
“The Hunter is central to the future success of New South Wales,” Cr Moore said.
“Our region deserves a transition strategy that matches the scale of the opportunity and the challenge ahead. We will continue working with all levels of government to secure the investment and reforms needed to support our communities, diversify our economy and create future jobs.”
