New South Wales budget faces pushback from opposition and tourism sector

The Labor government’s 2026 New South Wales budget projects just 1 % economic growth and a per‑capita recession, while taxes have risen 31 % since the party took office. The NSW Nationals criticised the plan, saying it confirms “NSW is going backwards” and that the state will not achieve a budget surplus or deliver major infrastructure projects. Nationals leader Singh warned that regional communities are being “asked to do more while receiving less”.

The NSW Tourism Association also warned the budget falls short of the investment needed to meet the Visitor Economy Strategy 2035, which targets $91 billion in visitor spending and 150,000 new jobs. CEO Natalie Godward highlighted a “substantial reduction in grants and contribution funding” for Destination NSW and urged the government to increase spending on marketing, events and regional development to stay competitive with other states.

Both groups argue the budget does not provide sufficient support for the state’s key growth sectors and could hinder NSW’s economic and tourism ambitions.