NSW Budget 2026-27: Cost-of-living Measures

A reference guide for media. Every cost-of-living measure in the Budget, in one place.

Cost-of-living pressure remains the central challenge for households. Global conflict, supply-chain disruption and an energy shock have added fresh pressure since the start of the year, with higher fuel costs feeding through to transport, groceries and the cost of running a business.

The centrepiece of the Budget's response is a 12-month Transport Affordability Package worth $561.4 million, targeted where the pressure is greatest. Alongside it sits a broad set of ongoing concessions, rebates and fee-relief programs that reduce everyday costs for renters, families, pensioners, students, apprentices and concession-card holders.

The headline relief

Transport Affordability Package

• $100 off private vehicle registration - for the owners of around 4.4 million vehicles (excluding caravans and trailers), worth about $435 million; an $80 cut applies to motorcycles. For 2026-27.
• Weekly toll cap cut to $50 - down from $60 for 2026-27. Eligible private motorists claim rebates on toll spending above the cap, up to the fair-use limit.
• Opal fares held at 2025 prices for a year - for hundreds of thousands of daily users.

Other Measures

• Toll notice administration fees - scrapping toll administration fees from July, saving at least $10 a notice, and ending a charge that cost motorists $60 million last year, in some cases twice the toll itself.
• Home Energy Saver - $557.1 million in total: $480.0 million in interest-free loans of up to $15,000, plus $77.1 million in discounts, to install energy-saving technology.
• $1,000 cost-of-living payment - for more than 120,000 NSW Government employees, triggered because Sydney CPI growth exceeded 4 per cent between the March quarters of 2025 and 2026.
• Support for first home buyers - more than 94,000 supported since 1 July 2023 through transfer duty exemptions and concessions, averaging around $20,400, with around a further 30,000 expected in 2026-27. A $10,000 First Home Owner Grant applies to eligible buyers of newly built homes.
• 3-Year-Old Fee Relief in long day care - extended to the end of 2027.
• FuelCheck - $2.6 million to upgrade FuelCheck and enforce accurate fuel price reporting.

Housing

• Stronger protections for more than 2.3 million renters: a ban on no-grounds evictions, fee-free ways to pay rent, rent increases limited to once a year, and easier pet approvals.
• Rent Check website, so renters can test whether the rent they are being asked to pay is fair.
• Smart Rental Bonds, from mid-2026, allowing tenants to digitally transfer a bond from one rental to another.
• First home buyers supported through an average saving of $20,400 in transfer duty exemptions for purchases up to $800,000 and a concessional rate on purchases up to $1 million.
• A $10,000 First Home Owner Grant for eligible buyers of newly built homes.
• Rent Choice, Advance Rent, Bond Loan and related programs to help eligible people take up a private lease, including people escaping domestic violence.
• Up to $250 off council rates and waste charges for eligible pensioners, through pensioner council rates and water rebates.

Energy and water bills

• Home Energy Saver: $557.1 million in interest-free loans and discounts to install energy technologies.
• $7.2 million for energy-efficiency upgrade schemes, particularly in regional NSW.
• Continued energy social programs for households, including:

  o Energy Accounts Payment Assistance for people in short-term hardship, crisis or emergency.

  o Energy rebates for eligible concession card holders, Family Tax Benefit recipients, seniors, and people who rely on medical or life-support equipment.

• Water rebates for eligible pensioners, Department of Veterans' Affairs card holders and community organisations.
• A $250 front-loader washing machine through the Washing Machine Exchange program for eligible households.
• Around 30 per cent off the upfront cost of small-scale battery systems through the Cheaper Home Batteries program (administered by the Australian Government).
• An average discount of up to $500 through the Virtual Power Plant incentive.

Health costs

• More bulk-billing appointments through the Bulk-Billing Support Initiative, which provided GP clinics with an estimated $9 million in payroll-tax savings in 2025-26.
• Up to six fully bulk-billed GP clinics across regional NSW, expected to open by mid-2027 (administered by the Australian Government).
• Assistive technology for short-term or ongoing health needs through the Aids and Equipment program.
• Free ambulance services for eligible concession card holders, and for victim-survivors of sexual assault, domestic violence or child abuse.
• Baby bundles for new parents, with essential items to support early health and development.
• Free dental care for children at participating schools through the NSW Health Primary School Mobile Dental Clinics program.
• Travel and accommodation assistance for patients who must travel long distances for treatment not available locally.
• Free glasses and vision aids for financially disadvantaged residents through the NSW Spectacles program.
• Free parking at rural and regional public hospitals.
• A pre-IVF fertility testing rebate of $250, and up to $2,000 through the fertility treatment rebate for eligible treatments.

Transport

Beyond the headline package above, ongoing transport-related support for drivers, toll-road users, commuters, students and people with disability:

• Toll relief through the weekly toll cap - eligible private motorists claim rebates on toll spending above the cap, up to the fair-use limit.
• The M5 South-West Cashback Scheme for eligible private, pensioner and charitable vehicle use.
• Daily, weekend and weekly Opal travel caps for adults, children, young people and concession holders.
• School Student Transport Scheme support for eligible students travelling by bus, rail, ferry, coach or private vehicle where no public transport is available.
• Concessional driver licence renewal fees for eligible concession holders.
• Motor vehicle registration exemptions for eligible concession card holders, including pensioners.
• Taxi Transport Subsidy Scheme - 50 per cent of a taxi fare up to $60 for eligible residents who cannot use public transport because of severe and permanent disability.
• A $100 vehicle registration rebate for registered first- and second-year apprentices.
• Lower toll costs for privately registered caravans, boats and horse floats through the Large Towed Recreational Vehicle Toll Rebate.

Education and training

• Up to $4,456 in fee relief for parents and carers of children aged 3 to 5 in community

  and mobile preschools in 2026.

• Up to $2,563 in preschool fee relief for children aged 3 to 5 attending eligible long

  day care preschool programs in 2026.

• Subsidised vocational education and training for in-demand skills through the Smart

  and Skilled program.

• Fee concessions for Australian Government welfare beneficiaries and people with

  disability.

• Travel and accommodation support for apprentices and new-entrant trainees who

  travel more than 120 km round trip for training.

• Bert Evans Scholarships for apprentices facing hardship.

Pay and conditions for essential workers

• A $1,000 cost-of-living payment for more than 120,000 NSW Government employees,

  triggered because Sydney CPI growth exceeded 4 per cent between the March

  quarters of 2025 and 2026.

• Workforce stability and record pay increases for essential workers, including those in

  health, education and transport through the NSW Government's Fair Pay and

  Bargaining Policy.

• The largest pay increase in decades for nurses and midwives, with increases of

  between 16 per cent and 28 per cent over three years.

Sport, recreation and culture

• Two $50 Active and Creative Kids vouchers for eligible families, available twice a year.
• Discounted entry to national parks for eligible concession holders, including pensioners and veterans.
• Fishing licence exemptions for First Nations people, young people and eligible concession card holders.
• Free general admission to the Australian Museum, Museums of History NSW, Art Gallery of NSW and Powerhouse Museum, plus discounted entry to paid exhibitions for concession holders
• Free entry for support people at participating venues and events through the NSW Companion Card.

Other concessions and fee relief

• Free Working with Children Checks for volunteers, including students on professional placement, potential adoptive parents and authorised carers.
• Free National Disability Insurance Scheme worker checks for volunteers.
• Reduced or waived court fees where a person's capacity to pay may limit access to justice.
• Free Will and Power of Attorney preparation through the NSW Trustee and Guardian for eligible pensioners.
• A 0.5 per cent land tax early-payment discount where the full amount is paid before the notice of assessment due date.