The New South Wales Government’s 2025/26 Budget outlines a four-year infrastructure plan that will see $118.3 billion of investment to stimulate economic growth, boost housing availability, and strengthen communities by restoring essential services.
According to the State Budget, investment in infrastructure is expected to exceed $30 billion this financial year – the equivalent of $84.4 million per day.
The plan’s priority investments include significant transport projects, which will receive $55.6 billion over four years through 2028-29, including major investment in Sydney’s metro projects, regional roads and rail fleet.
The growing communities of Western Sydney are supported with a $5.5 billion roads package alongside $3.6 billion over four years for Sydney Metro – Western Sydney Airport to support the opening of the Aerotropolis.
Other priority investments intended to support economic growth include an investment of $644.1 million in the integrated stormwater and recycled water scheme needed to deliver 850 hectares of industrial land in the Mamre Road Precinct and support Western Sydney jobs.
A total of $336.1 million has also been allocated to continue the delivery of economic precincts in Parkes, Wagga Wagga, Moree and the Snowy Mountains to capitalise on the strengths of these regions and drive job creation.
Funding of $115.5 million has been earmarked for a Logistics Precinct at Newcastle Port to support the delivery of the Renewable Energy Zones and creating jobs for Newcastle.
One of the government’s highest priorities is addressing the housing crisis. Alongside continuing efforts to reform the planning system and tackle regulatory barriers, major investment has been allocated to the trunk infrastructure that will support the delivery of the homes that the state needs.
The long-awaited Aerotropolis
The Western Sydney Aerotropolis has been in development for several years, with the site for the Western Sydney International (WSI) Airport originally being designated at Badgerys Creek over a decade ago, in April of 2014.
The Aerotropolis is set to become a thriving economic centre, potentially creating 120,000 new jobs for Western Sydney. Located around the new airport, it will be home to future-focused industries such as advanced manufacturing, research, training and education, freight and logistics and agribusiness.
The NSW and Federal governments have invested over $25 billion in infrastructure projects in the Aerotropolis.
Over the next four years, $3.6 billion will be invested in the Western Sydney Airport Metro, establishing a vital connection between the new Western Sydney International Airport, St Marys, and the greater Sydney region.
Track laying is officially underway on the 23-kilometre metro line that will link St Marys and Bradfield via the new WSI Airport.
Over a kilometre of track has already been laid at Luddenham, and rail strings are being welded into 120-metre lengths at a number of laydown sites along the alignment, before being carefully positioned, adjusted and concreted into place.
Over the following 14 months, more than 100 kilometres of Australian-made steel rail (totalling 6408 tonnes) will be gradually installed, with as much as 100 metres of track being laid each day.
In addition, more than $2.0 billion has been allocated for the construction of the toll-free M12 Motorway, further enhancing transport links in the area.
The motorway is close to completion with all the final concrete pours complete and final stages currently underway.
Four colourful leaf canopies were installed in March, as part of the project’s Aboriginal art strategy, creating cultural landmarks along the shared path and adding to the three already installed.
Upon completion, the M12 Motorway will showcase nine eucalypt leaf canopies along its shared user path. These canopies, designed in collaboration with Indigenous design studio Balarinji and created by Aboriginal artists Barry Gunther (Gandangara), Jasmine Seymour (Dharug), and Jamie Eastwood (Ngemba/Dharug), will be thoughtfully placed to provide welcoming rest areas for users.
In the coming months, work will continue on pavement grooving and grinding, as well as the installation of signage and street lighting. Crews will also proceed with pavement, drainage, Intelligent Transport Systems (ITS), and utility work across various sections of the motorway, alongside the ongoing installation of safety barriers.
Construction will be completed on the Elizabeth Drive, Luddenham Road, Badgerys Creek, and Cosgroves Creek bridges, while work on the Great Emu in the Sky sculpture will progress. The Airport Interchange bridges and the shared user path, including fencing, are also set for completion. Additionally, landscaping and tree planting will continue, and line marking will commence on the western section.
To accelerate development at Bradfield City Centre, over $1 billion will fund enabling works, including the creation of the Advanced Manufacturing Readiness Facility, essential civil infrastructure, utilities, and Central Park. The Upper South Creek Advanced Water Recycling Centre will receive $1.1 billion, supporting sustainable water management for the region.
The Bradfield City Centre has entered into Stage 2A, which marks the first phase of civil and enabling works. The project spans 38 hectares and encompasses the development of new master planned roads, streetscapes, civil works, and public utilities, with construction scheduled for completion in 2025.
As part of these works, four kilometres of road lanes will be constructed with recycled asphalt, incorporating waste products such as plastic bags, glass, tyres, and road sweepings that would otherwise go to landfill. Additionally, eight kilometres of active transport paths will be created for cyclists and pedestrians, and on-street parking will be provided for 178 cars.
The area around Bradfield Metro Station will feature four kiss-and-ride points, three taxi bays, and two bus bays. Streetscape improvements will include the planting of 600 trees, and all in-situ concrete work will utilise green concrete. The project also involves the installation of in-ground services, including potable, recycled, and wastewater systems, as well as electrical and fibre networks to support future developments.
The first stage of the Fifteenth Avenue upgrade, which will connect Liverpool to the new airport, is backed by $950 million, bringing the total investment in this project to $1 billion. Additionally, $644.1 million is dedicated to an integrated stormwater and recycled water scheme, a critical component for unlocking 850 hectares of industrial land in the Mamre Road Precinct.
Finally, $148.6 million is set aside for upgrades to safety and access roads, incident management, wayfinding, and planning for Devonshire Road, all of which are essential to the development of the Western Sydney Aerotropolis.
Road connections for Sydney’s North West
North-western Sydney is a major growth area for the state, with approximately one third of the New South Wales population now living in this region.
This Budget allocates $171 million in new funding – in collaboration with the Federal Government – to support the construction and planning of road upgrades in this rapidly expanding region. Of this, $74 million is dedicated to planning improvements and future duplication along the Richmond Road corridor, stretching from the M7 to Richmond. This builds on the existing commitment to widen Richmond Road at the M7 and Elara Boulevard and is currently in the planning and community consultation phase.
An additional $57 million will be used to plan the duplication and future connection of Townson and Burdekin roads in Schofields, as well as to develop plans for widening Garfield Road West, complementing the government’s ongoing work to expand Garfield Road East. The Budget also provides $25 million in new funding to commence enabling works for the upgrade of Toongabbie Bridge.
Furthermore, planning will advance for the upgrade of the Flushcombe/Bungarribee Road intersection in Blacktown and the Francis Road Rail Overpass at Rooty Hill, ensuring continued progress on critical infrastructure projects in the region.
Together, these substantial investments in transport, housing, water, energy, and community infrastructure demonstrate an enormous pipeline of works to come, designed to build a stronger, more connected, and sustainable future for the state.
By prioritising strategic planning, collaboration across all levels of government, and targeted funding for both immediate and long-term needs, the 2025/26 State Budget lays the groundwork for economic growth, improved liveability and resilient communities.
These projects will not only support the state’s growing population but also ensure that essential services and opportunities are accessible to all residents, driving prosperity and wellbeing across New South Wales for years to come.
