Federal-NSW partnership delivers $14.2 billion for Sydney in record state allocation

New South Wales has received a record $14.2 billion in federal budget commitments directly benefiting Sydney, the largest Commonwealth financial contribution to Australia's largest city in any single year, with Sydney Metro West, the Western Sydney Airport, housing programs, and health infrastructure the primary beneficiaries.

Federal Treasurer Jim Chalmers said Sydney's share of national infrastructure investment reflected both the scale of its project pipeline and the economic return generated by capital city infrastructure in the nation's largest metropolitan economy. "Sydney is where $500 billion of Australia's GDP is generated every year. Investing in Sydney is investing in national productivity," he said.

The Metro West contribution of $4.8 billion is the Commonwealth's largest single project investment in NSW and has been structured to provide certainty of delivery for a project that multiple analyses have identified as the most important productivity-enhancing infrastructure investment available to the Sydney metropolitan economy. The Metro West will effectively double the rail capacity available to move workers between Sydney's two largest employment nodes — the CBD and Parramatta.

Western Sydney Airport's federal contribution of $2.3 billion in the current financial year covers the final stages of terminal construction and the first stage of the Aerotropolis infrastructure that will surround the airport. NSW Premier Chris Minns said the airport was the most significant economic development project in the history of Western Sydney, a region with 2.2 million residents and a GDP larger than South Australia's but which had historically been underinvested relative to the eastern harbour precincts.

The housing programs totalling $3.1 billion for NSW are linked to the Housing Accord delivery milestones, with the next tranche to be released after confirmation of the first year's dwelling completions above the baseline target.

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