Scroll down for our hot takeaways from the 2025/26 NSW Budget (spoiler: we aren’t thrilled).
The Net Zero Commission provides independent expert advice to the NSW Government in transitioning to a net zero economy. The commission is responsible for reviewing the climate actions currently being undertaken by the NSW Government and identifying recommendations to make sure objectives of climate adaption and emissions reduction are being met.
The commission is currently open for consultations. They want to hear from individuals and groups across the state on topics that are relevant to the advocacy we do together at Sweltering Cities.
You can add your comment by sharing your views in the form below, and we will add them to our submission. We will send you the final version when it is submitted.
The commission is looking for answers to the following question, which you can answer below:
What initiatives should the commission consider in assessing NSW’s preparation and responses to extreme heat and humidity events in NSW?
We are pleased to see the commission include the impacts of extreme heat as a focus area. You can have a read through the other topics covered in this consultation here.
NSW Budget Analysis
The NSW Budget was delivered in June 2025 by Treasurer Daniel Mookhey, containing some welcome announcements on health, local buses and infrastructure for growing suburbs. However, anyone looking for an ambitious vision for addressing the climate, housing, and cost of living crises facing the state would be disappointed.
We know that climate change is fuelling deadly disasters, including heatwaves, bushfires, and floods in NSW. These events are already driving a tenfold increase in government disaster spending and the government has allocated $1 billion per year in funding for disaster relief for the next four years.
However, it’s disappointing to see no significant new investment in climate adaptation or resilience that could help prevent disasters. Every dollar spent on adaptation today can deliver real, lasting benefits. We can’t afford to keep delaying action.
The Budget also had no new commitments to tackle cost-of-living pressures, even though people are already having to choose between paying high energy bills, and essentials like food and medication. We’re already hearing from people who are dreading the summer heat and concerned about the costs of keeping cool.
We’ve summarised the Budget based on our key priority areas below. Read to the end of this email for a great opportunity to use your voice to put heatwaves on the NSW Government’s climate agenda.
Our overview of the Budget:
Housing & Renters:
- Housing developers are getting a boost with a $1 billion commitment to guarantee sales in new housing developments, which they estimate will lead to 5,000 new homes.
- No news on social housing funding, but many commentators are unsurprised because of last budget’s $6.6 billion investment.
- No news for renters. In May, NSW announced rental reforms – including the end of ‘no grounds eviction’. We’re disappointed but not surprised that there’s still no action on energy efficiency and minimum rental standards for heating and cooling. This week there has been a big win for renters in Victoria, with new standards for cooling, insulation, and draught-proofing– now it’s time for NSW to catch up!
Transport:
- There’s funding for new buses and bus routes, including school buses in Sydney’s newest suburbs, and road improvements in western Sydney. Yet it’s disappointing to, once again, see no funding for bus shelters– a relatively low-cost measure that would protect thousands of commuters from extreme heat.
- This Budget includes $5.5 billion for road upgrades, while we estimate a bus shelter program would cost just $20 million to deliver 2,000 shelters in our hottest suburbs.
Climate & Cost of Living:
- The NSW Government is prioritising investments in large-scale renewable projects, but there is no additional support for household clean energy solutions that can help reduce emissions and energy costs in this budget. There were also no new energy rebate measures, with the $150 national Energy Bill Relief payment not extending beyond the end of this year.
Other news:
- $700 million will go towards the construction of the planned new Bankstown Hospital.
- $9.2 million for Penrith Beach (‘Pondi’), Regatta Centre and Whitewater Stadium.
- Parramatta Park will receive $1 million for renewal.
Read other people and organisation’s takes on the budget: