The WIN Sports and Entertainment Centre precinct is in dire need of significant and aspirational upgrades. Photo: Keeli Royle
The 2025–26 NSW Budget brings “mild relief” for rising costs of the Illawarra’s business owners, but stops short of a commitment to essential reforms and future critical infrastructure needs, according to the region’s peak business body.
Business Illawarra Director Coralie McCarthy said while the budget had the right intent for a sensible approach to the state’s economic management, essential reforms were needed to ease the burden on businesses, particularly regarding the state’s “out-of-control” workers’ compensation costs, payroll tax and insurance costs.
“No matter what side of politics you’re on, businesses need change … Business confidence locally is going backwards, in the Shoalhaven and Southern Highlands it remains some of the lowest in the state according to the most recent surveys,” she said.
Insurance and Care NSW last month confirmed the average rate of workers’ compensation premiums in NSW would increase by 8 per cent in the 2025-26 financial year.
At 5.45 per cent, the state’s payroll tax is the fourth highest in the country behind ACT (6.85 per cent), NT (5.5 per cent) and WA (5.5 per cent), and has the third lowest tax-free threshold at $1,200,000.
“The reality is that 52,000 NSW businesses continue to be hit with an unmanageable payroll tax – and every second day I meet a business owner who doesn’t want to grow, so they can avoid the extra costs,” Ms McCarthy said. “With inflation and real wages rising, so many need reform or they won’t survive.”
It wasn’t all bad news, however. Welcome announcements included:
- 30 per cent discount on the upfront cost of small-scale battery system installation for eligible businesses
- $27.3 million to help establish a Future Jobs and Investment Authority to coordinate new economic opportunities in coal-producing communities
- $48 million committed to deliver better mobile coverage on major regional roads
- Significant investment in natural disaster recovery
- $3.4 billion investment in TAFE and skills to support housing, including 23,000 fee-free construction apprenticeships and a $13.8 million Construction Workforce Package to upskill 4800 workers and support school-to-trade pathway
- Almost $80 million innovation program to support the recently released NSW Innovation Blueprint.
Ms McCarthy welcomed these moves, noting it was a good first step towards driving productivity and attracting investment.
“Thankfully, the NSW Government’s investment, although modest, gives some businesses a chance to grow, compete globally and create new jobs, even with the global uncertainty we’re facing,” she said.
Ms McCarthy also praised the government’s commitment to previously announced projects such as the Milton Ulladulla Bypass, Jervis Bay upgrades and the Mt Ousley Interchange, but lamented a lack of future infrastructure planning in the pipeline.
“Business has been calling out for a long time: we need to plan for now for our future,” she said. “Projects like the rail link for freight and passengers into Western Sydney are critical for our future growth.”
Key projects that remained unfunded included WIN Entertainment Centre precinct development, Shellharbour Airport upgrades and “much-needed” upgrades to the public transport network and other road infrastructure.
Ms McCarthy said investment in the WIN Entertainment Centre would be “game-changing” for the Wollongong CBD and the region, bringing “confidence to the private sector that Wollongong matters” — a view shared by Destination Wollongong Acting General Manager Jeremy Wilshire.
“The WIN Sports and Entertainment Centre precinct is in dire need of significant and aspirational upgrades. We’re losing major acts and events due to its outdated facilities,” he said.
“While I’m not in the inner sanctum, I’m hopeful there is now meaningful progress being made on the current master plan, and we are keen to learn more.
“Personally I think major upgrades to the entertainment centre are critical, a convention centre should be on the table, and a precinct mix judged by how it is activated on its quiet days — not just hero event days — would be the best outcome for the Illawarra.
“Now is the time for a concerted and relentless push from this city to get what we deserve.”
