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By: Kristina Popova, Madina Aziz
24 Jun 20263 min read
Treasurer Daniel Mookhey delivered a deficit of $2.3b in the 2026-27 financial year, with a surplus of $1.1b expected in 2027-28, rising steadily to an estimated surplus of $1.87b by 2030. However, gross debt will reach $178.5b this financial year and is estimated to rise significantly to a record $219b by 2029-2030.
Tax receipts declined, with high interest rates impacting collections of stamp duty and land tax, with the State’s tax income revised down by $8.4b over the forward estimates. However, New South Wales will receive $5.6b in GST receipts, $5.3b in investment dividends, $4.7b from the Commonwealth and $943m more in payroll tax.
The State’s economic growth has been downgraded to just 1 per cent in the next financial year, compared to the 2025-26 budget projection of 2.25 per cent, while unemployment is forecasted to hit 4.5 per cent.
The Budget does not introduce any new housing tax measures, with existing first home buyer concessions, exemptions and grants remaining unchanged.
To encourage more construction in the build-to-rent and retirement living sectors, the Budget introduces a new relief from surcharge purchaser duty for certain projects. Draft legislation to implement these changes has been introduced in the form of the Revenue and Other Legislation Amendment Bill 2026 (NSW).
From 1 July 2026, eligible developers and operators may be able to access a refund of surcharge purchaser duty where they:
In addition, foreign investors who meet these eligibility criteria (referred to as ‘exempt transferees’) may be eligible for an upfront exemption from surcharge purchaser duty, rather than needing to apply for a refund after the fact.
If you wish to discuss the above budget announcements, please reach out to a Grant Thornton Partner today.
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