NSW budget 2026: What small businesses and startups need to know

NSW will be handing down its 2026-27 budget on Tuesday, with Treasurer Daniel Mookhey promising “relief for today, reform for tomorrow, and discipline always”.

While quite a few pre-budget announcements are already public, there is very little for small businesses and startups so far.

However, there are some clear signals about broader fiscal settings and a few measures that will likely shape the modus operandi for the next 12 months.

NSW is also on track for eight consecutive operating deficits, with the hoped‑for surplus now further away, increasing pressure to keep spending growth low and avoid new broad‑based giveaways.

Analysts have dubbed NSW the state still suffering “fiscal long COVID”, which could mean that a big small business package ala Victoria may not be likely in tomorrow’s budget papers. We’ll have to wait and see.

Even so, here’s what’s on the record so far that directly or indirectly matters for small businesses and startups.

Economy and revenue: Slower and more fragile

According to initial reports, economic growth is expected to slow to around 1% in 2026‑27, down from 2.5% in the last mid‑year update. This is happening as higher interest rates and larger mortgages hit NSW households harder than other states, alongside falling stamp duty.

There are no direct business measures here yet, but there are some notable mentions:

There are also some transport announcements that could have tangential benefits.

Housing moves with some potential benefits for building and construction SMEs:

What’s missing for small businesses and startups in the NSW budget (so far)

Equally telling is what has not been announced ahead of Tuesday. Of course, this doesn’t rule out smaller, targeted business measures on the day

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