NSW Premier Slams Federal Budget, Claims State ‘Shortchanged’ on Infrastructure and Health

In a fiery address to the Legislative Assembly, the Premier argued that the nation’s most populous state is being forced to do the “heavy lifting” for the national economy while receiving a pittance in return. Minns warned that the federal budget’s failure to support NSW could compromise the state’s ability to meet ambitious housing and service targets.

The Infrastructure ‘Shortfall’

The center of the Premier’s grievance lies in a stark disparity between population and investment. While NSW is home to 31% of the Australian population, it is slated to receive just 17.7% of total federal infrastructure funding.

Minns revealed that the $11.5 billion NSW is expected to receive over the next four years is nearly $900 million less than what was forecast in the Mid-Year Economic and Fiscal Outlook (MYEFO).

“We are welcoming more people than any other state, yet the federal investment in the roads, rail, and services needed to support them simply isn’t there,” the Premier told the House.

The ‘Hume Highway’ Subsidy

The Premier provided a blunt per-capita breakdown of infrastructure spending for the 2026-27 financial year to illustrate the “inequity,” highlighting a massive gap between NSW and its neighbors:

Premier Chris Minns was particularly critical of the funding flowing to Victoria, including a $3.8 billion boost for the Suburban Rail Loop. “

“Money received from New South Wales taxpayers… is going down the Hume Highway into the Victorian Government,” Minns said.

“New South Wales will receive less than half of what they’ll be receiving in Victoria. That is not fair.”

Health and GST ‘Drain’

Beyond transport, the Premier took aim at the National Health Reform Agreement, arguing that federal contributions do not reflect the rising complexity of hospital presentations. He described the current GST distribution formula—where NSW receives only 83 cents for every dollar sent to Canberra—as a “drain” on the state’s capacity to support front-line workers.

“Our nurses, doctors, and teachers are performing miracles every day, but they are doing so with one hand tied behind their backs because the Commonwealth isn’t meeting us halfway,” he said.

Taxation and the ‘Working Week’

While welcoming modest tax relief for PAYE (pay-as-you-earn) earners, Minns called for a broader national effort to reduce the burden on labor. He noted that high-income earners in the top tax bracket effectively work until Wednesday afternoon just to pay the federal government.

“If there’s going to be changes in relation to the taxes as it applies to assets, there has to be a concurrent reduction as it applies to labour,” Minns argued.

Political Fallout

The critique signals a deepening rift between the state and federal Labor governments. While the Federal Treasurer has defended the budget as a “responsible” inflation-fighting measure, Minns’ rhetoric suggests a more combative stance is coming.

The NSW Opposition echoed concerns regarding the state’s “fair share,” though they accused the Minns Government of failing to lobby its federal counterparts effectively.

Vowing to seek an “urgent agreement” with Canberra to right these perceived wrongs, the Premier concluded,..”We aren’t asking for a handout. We are asking for what is fair for the people of New South Wales.”