NSW state budget 2025-26: What small businesses need to know

Key wins for small business

Innovation and growth funding

The government is investing $79.5 million over four years to implement the Innovation Blueprint. This includes:

• $38.5 million for Tech Central to support the startup ecosystem
• $20 million for the Emerging Technology Commercialisation Fund
• $6 million to extend the MVP Ventures program (early-stage grants)
• $6 million to help manufacturers adopt advanced technology
• $4 million for women founders and regional entrepreneurship programs
• $700,000 for the National Space Industry Hub

Investment Delivery Authority

A new agency will fast-track approvals for private projects worth $1 billion or more. The aim is to unlock stalled construction and infrastructure activity, creating downstream supplier opportunities.

Service NSW Business Bureau

The Business Bureau gets a $5 million boost, taking its 2025 funding to $30 million. It offers:

• Free, one-on-one business advice
• Help to apply for grants and tenders
• Guidance on licences, permits, and red tape

Energy bill relief

Eligible small businesses will receive:

• A $325 electricity rebate in 2024–25
• An additional $150 in 2025–26 (split into two $75 quarterly payments)

Fee-free apprenticeships and traineeships

$16.3 million has been committed to continue free training until 30 June 2025. This covers:

• Up to $2,000 per apprentice
• Up to $1,000 per trainee

Tax and levy updates

Payroll tax

• The threshold remains at $1.2 million
• Rate stays at 5.45%

Land tax

• Thresholds are frozen at 2024 levels:
  • $1.075 million (general threshold)
  • $6.571 million (premium threshold)
• This is expected to raise $1.5 billion over four years

Payroll tax rebate for bulk-billing GPs

Medical practices that bulk bill the majority of services can claim back payroll tax paid on contractor GP wages as part of a $188.8 million package.

Other relevant measures

• $97.9 million to continue the Digital Restart Fund, opening opportunities for government tech suppliers
• $35 million boost for the NSW Building Commission to improve construction standards and compliance
• Extension of the Fee-Free Construction program into 2025, covering short courses for trades

What this means for small businesses

• No tax relief: Plan ahead if your wage bill is approaching $1.2 million or if you own commercial property likely to attract land tax.
• Claim what's available: Energy rebates and training subsidies are worth applying for. Most are automatic or simple to register.
• Grants are coming: Innovation Blueprint programs (especially MVP and commercialisation funds) will open application rounds later in 2025.
• Get support: The Business Bureau offers hands-on help with funding, red tape, and tenders.
• Keep an eye on major projects: The Investment Delivery Authority may unlock new commercial activity in infrastructure, construction, and clean energy.

If you're using Thriday, you can automatically tag and track expenses linked to rebates, training and innovation grants, making it easier to stay on top of your financial admin.

All data is current as of 25 June 2025.

For full details, visit the official NSW Budget 2025–26 site.

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