AUTHOR

Mira Brewster
Mira Brewster
State Tax Specialist
Tax Advisory
Sydney

The NSW Budget 2026-27 was delivered by NSW (Labor) Treasurer, the Hon Daniel Mookhey MLC on 23 June 2026. 

This Budget aims to balance immediate cost-of-living relief with longer-term investment in housing supply, essential services and economic resilience. 

For businesses and investors, the most significant measures include:

  • targeted NSW surcharge purchaser duty  relief by way of refunds for foreign investors in  build-to-rent properties and in retirement villages
  • targeted NSW surcharge purchaser duty exemptions for foreign investors in build-to-rent properties and retirement villages
  • targeted NSW surcharge purchaser duty exemptions for buy-backs of retirement villages by operators from a resident of the retirement village. 
  • a renewed focus on faster housing delivery through modern construction methods
  • major commitments to health, education, transport and community safety. 

Foreign investors

Foreign purchaser surcharge duty waived for certain development of retirement villages by Australian-based developers

From 1 July 2026, the 9% foreign purchaser surcharge duty will be waived for build-to-rent and retirement investments of more than 50 dwellings.Image removed.

This is in a bid to boost construction of build-to-rent housing and retirement villages.

The new exemption brings NSW’s tax system in line with Queensland, which has a surcharge exemption for build-to-rent housing, and states that do not impose the surcharge on retirement villages.

Technical details:

The Budget Bill, NSW Revenue and Other Legislation Amendment Bill 2026, proposes a new Chapter 2A, Part 3A (proposed Part 3A) be inserted into the Duties Act 1997 (NSW) (Duties Act) for refunds and exemptions for surcharge purchaser duty relating to build-to-rent properties, retirement villages and  other residential-related transfers of land entered into on or after 1 July 2026. Proposed new sections:

  • 104ZJC. Makes provision for a refund of surcharge purchaser duty on land transfers where the   transferred land would be entitled to a build-to-rent land tax concession for the five-year concession period. This entitlement refers to a reduction in land value, under the Land Tax Management Act 1956, section 9E or 9F.
  • 104ZJD. Makes provision for a refund for an Australian corporation, which, in certain circumstances, constructs a retirement village or additional dwellings for a retirement village on the land under the transfer.
  • 104ZJE. Makes provision for a refund in relation to the transfer of an existing retirement village with at least 50 dwellings, subject to the retirement village operating for a certain period of time.
  • 104ZKC. Duty exemption for return of dwellings in retirement villages to operators.
  • Definitions of Australian corporation, build-to-rent land tax concession, exempt transferee, exempt transferee approval and refund eligible transfer for Part 3A.
  • A definition of retirement village for Chapter 2A in the Duties Act.
  •  refund eligible transfer defined to mean a transfer of residential-related property
    • entered into on or after 1 July 2026, and
    • that is not made in conformity with an agreement for sale or transfer that was entered into before 1 July 2026.

Budget revenue measures

Information taken from the Budget Paper No 1 Budget Statement..  

Predicted revenue to be collected by Revenue NSW from the compliance tax integrity program and policy measures is set out below: 

Revenue

Private motor vehicle registration discount

As part of the Government’s cost-of-living package, eligible motorists will receive a $100
discount on private vehicle registration for one year ($80 discount on registration for
motorcycles). The discount will be deducted from the total fee displayed on registration
notices issued for eligible vehicles. This measure is estimated to reduce revenue by
$435.1 million.

Maintain Revenue NSW tax integrity program at existing levels

Revenue NSW’s tax integrity program is continuing at current levels, supporting a fair and equitable tax system by ensuring all taxpayers meet their obligations. This is estimated to ensure $696.0 million of tax owed is collected over the four years to 2029-30, which reflects maintaining prior years’ activity and compliance levels.

Cost-of-living crisis - more relief for motorists

The 2026-27 NSW Budget is helping to ease some of the cost-of-living pressure families and households are facing, with a one-year reduction in the toll cap to $50 and the scrapping of toll administration fees.Image removed.  

From 6 July 2026, the new $50 cap will be in place for 12 months The first claims under the new, lower cap can be lodged from early October.

Plan to deliver homes faster in NSW

The Minns Labor Government is turbocharging the way homes are built in NSW, unlocking the potential of modern methods of construction to deliver more high-quality homes, faster.

Health investment

Families across NSW will benefit from more staff, more services and more hospitals as   this budget delivers the largest health commitment in the history of New South Wales.

A landmark $11.9 billion to build and upgrade the hospitals our growing State needs.

And a further $10.3 billion to increase services and pay the staff who provide them.

The Minns Labor Government is ensuring children with hearing loss and their families continue to receive the ongoing specialised support they need, contributing $20.4m to The Shepherd Centre and NextSense NSW Paediatric Cochlear Implant Program as part of the 2026-27 State Budget.

Education - New and upgraded public schools

The Minns Labor Government will invest a record $9.2bn in school infrastructure over the next four years,delivering new and upgraded schools to ensure every family has access to a world-class public education, close to home.

This historic investment includes $4.1bn  for new and upgraded schools across Western Sydney.

This budget invests $9.2 billion over four years in 260 new and upgraded schools across New South Wales. New schools for growing communities in Austral and Oran Park. New schools in regional communities from Chisholm to Flinders.

Police and Justice - NSW Police Force

The Minns Labor Government will strengthen the capability of the NSW Police Force and NSW Crime Commission to fight crime and keep the community safe with a $126.2m investment.
Additionally, the Minns Labor Government will invest $108.8m to fund major technology upgrades for the NSW Police Force including cutting-edge technology and digital evidence management systems. The goal is to equip NSW police with nation-leading digital ICT infrastructure and capability to police smarter and stay ahead of threats.

NSW Crime Commission

The NSW Crime Commission will get a $17.4m boost to disrupt organised crime networks and confiscate illegal and unexplained wealth.

With new technology to fight modern crime, an Australian-first armed response command and tougher firearms laws with a new Victims of Crime Commissioner.

New fire station for Marsden Park

The Minns Labor Government is delivering on its commitment to keep communities in Western Sydney growth corridors safe by providing more than $22m for a new fire station in Marsden Park.

Health asset and Equipment renewal program

Patients and health workers across NSW will benefit from a $400m investment to modernise hospital equipment and upgrade facilities, ensuring hospitals across the state have the infrastructure needed to deliver high-quality care.

New maternity unit at Grafton Base Hospital

Pregnant women and their families across the Clarence Valley will benefit from an upgraded purpose-built maternity unit following a $20m funding boost.

Isolated Patients Travel and Accommodation Assistance Scheme 

The Minns Labor Government is helping to ease cost of living pressures for patients and their families in regional, rural, and remote areas, with a $71.7m boost in the 2026-27 NSW Budget for the Isolated Patients Travel and Accommodation Assistance Scheme

Infrastructure 

$116.7 billion infrastructure program is larger than any undertaken by any previous New South Wales Government.

Twenty-five new metro stations, a tunnel beneath Sydney Harbour, money to fix the Great Western Highway as fast as the Labor Government can, major road upgrades across regional New South Wales, new hospitals, new schools and 49 new public preschools from Ballina to Broken Hill.

NSW Government Media Releases – Media releases issued by Ministers  

  1. Lowering the toll cap, no more admin fees: more relief for motorists
  2. From factory to front door: plan to deliver homes faster in NSW
  3. Minns Labor Government delivering a record $9.2 billion for new and upgraded public schools
  4. NSW health budget: support for children with hearing loss
  5. $126 million investment in the NSW Police Force and NSW Crime Commission to fight organised crime
  6. $71.7 million additional support for regional patients
  7. More help when you need it: $112.3 million to back mental health services
  8. Investing in regional jobs and RFS fleet management
  9. Record health investment for more staff and services
  10. $41 million to kickstart the Gosford Waterfront Revitalisation
  11. $20 million boost for new maternity unit at Grafton Base Hospital
  12. Securing our future: $221 million to deliver a new era of threatened species protection
  13. Minns Labor Government to deliver new public school in growing Chisholm
  14. Record investment in Sydney Trains to boost maintenance, improve reliability and incident response
  15. $22 million Western Sydney firefighting boost to protect growing communities
  16. Minns Labor Government invests in $400 million hospital maintenance blitz
  17. $1 million for multicultural events across NSW

Relevant budget websites: 

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