SPEECH – ADDRESS TO THE SYDNEY FINANCIAL FORUM- SYDNEY-DANIEL MOOKHEY
ADDRESS TO THE SYDNEY FINANCIAL FORUM
SYDNEY
FRIDAY, 5 JUNE 2026
Two weeks ago, at the McKell Institute, I set forth the mission of Budget 2026.
To build a state working Australians can afford.
By committing to both relief and reform. Relief for the immediate cost-of-living pressures working families face today. Reform to curb their fundamental causes for tomorrow.
We adopt this as our strategy so that NSW remains the best state to raise a family. The premier state to get an education. The easiest state to start a business.
But no doubt – the biggest oil-shock since the 1970s; rising inflation; climbing interest rates; and the return of trade tariffs – the triptych of forces currently stalking the NSW economy – are an affront to these egalitarian principles.
Compelling us to act so that the right to rise – the right of us all to convert our individual work into wealth; and to partake in the nation’s common wealth – is more than just an ideal. But instead, it is a reality our citizens are free to live daily.
Today I intend to shed light on a wicked dilemma. To explain how the Government plans to help working families during a time of high inflation, without making those inflationary pressures worse.
Why that has led the Minns Government to remain vigilant, watchful and careful about our own spending. Just like every working family is having to be vigilant, watchful and careful about theirs.
Disciplined Government Spending
Spending discipline has been a core trait of the Minns Labor Government.
It is a creed we preached prior to our election. And a conviction we have practiced ever since.
You do not need to take my word for it. Inspect our audited accounts for yourselves. 1.8% expense growth last financial year. 3.8% spending growth the year prior. 2.8% average through our time in government. Combined, the lowest level of spending growth of any Australian Government in that period.
By the way, the lowest level of spending growth of any NSW Government since 2010-11.
Did we freeze the wage of every police officer, paramedic, nurse, school teacher, prison guard, or other essential workers to fix the budget? No. We didn’t.
Instead, paramedics, school teachers, police officers, nurses and other essential workers have gotten record one-off pay-rises. Taxpayers have gotten schools, hospitals and police stations with actual staff. And the budget deficit continues to shrink.
Did we have to privatise $72 billion of monopoly assets like the state’s electricity networks, or encircle Sydney with private toll roads – to pay for our infrastructure program? No. We didn’t.
Instead, we are funding a $100 billion + infrastructure program – having rescued projects like the Western Sydney Airport Metro, and many others too – all while we cut the growth of the state’s debt levels.
Choices
Forum Members, lower debt and lower expense growth leads to lower inflation.
But you know – and I know – that for a government to restrain debt and lower expenses: that government has had to make choices. Many of them, difficult.
One choice I had to make – one choice the government had to make – was to reduce the number of Senior Executives working in the NSW Public Service.
Necessary – As the former government hired 1131 more senior executives in their final four years. Increasing their number by 36%.
Vital – Because to add so many senior executives, instead of employing more educators or healthcare workers, shows a government with the wrong priorities.
This government has the right priorities.
Sure, more educators and healthcare workers are joining the public service.
But today, I can report that by the end of this month, NSW will have 615 fewer senior executives in the public service than it did in 2023. A 15% reduction, saving more than $100m each year, and meeting the commitment we made in 2023.
Respecting Taxpayers
I am choosing to tell you about keeping this particular commitment to demonstrate respect to the public who, after all, ultimately fund the government. I steward the public’s money.
Yet that money does not belong to me. It belongs to those of you who pay the GST. Even to states like Victoria. To those of you who have ever had to pay Revenue NSW stamp duty, land tax or payroll tax.
Each of you could have used an extra dollar. I know this because you tell me. Often.
So, when I spend that dollar – when the Government spends those dollars: I am – and we are – required to spend it well.
The corollary is: if money is spent poorly, the Government needs to act.
Like we did when we fixed a broken police death and disability insurance scheme; like we did when we overhauled a broken workers compensation scheme; and like we did when we bought back the Northern Beaches Hospital, after an experiment in privatisation ended tragically.
The Next Frontiers In Saving Money
The obligation to drive the public’s money further, to seek out more opportunities to spend money better will continue on in Budget 2026. It must.
Because, apart from being a correct principle, it is a necessary practice. Especially for a government wanting to help working families during a time of high inflation, without wanting to make those inflationary pressures worse.
To put it simply – this Labor Government intends to deliver more spending discipline to offset the relief working families need to cope with the oil shock and inflation spike.
We intend to drive better value for taxpayers in two major areas of expenditure.
The first is in how we finance the state’s debt. The second is in how we manage the state’s capital program.
Debt
Let me begin with debt financing.
Here is the situation: The NSW Government needs to refinance and raise tens of billions of dollars over the next few years. We borrowed a lot of that cash during COVID. We have since borrowed a lot of that cash to build projects like Sydney’s new metro network.
The previous government rightly took out the COVID loans when capital was almost free.
Yet – you know; I know – that capital is far from free today. NSW now needs to refinance debt borrowed at interest rates as low as 1 per cent when interest rates are now hovering at around 5 per cent.
But here’s the complication – much turns on the price the market charges us for our loans. Which in turn depends on how much competition there is in our lending market. By just lowering interest rates by 25bps NSW stands to save approximately $400 million over 4 years.
Given rising interest expenses are the state’s biggest cost pressure: the spreads matter.
So, here’s what the Government intends to do.
T-Corp is getting permission to drive more competition between our lenders by issuing debt in non-AUD currencies. Deepening our lending market by bringing in more offshore lenders. I expect T-Corps’ new authority will ultimately drive down NSW’s borrowing costs. Like issuing in foreign currency has done for Queensland and Victoria.
But as Spider-Man’s Uncle reminds us all: with great power comes great responsibility.
T-Corp’s additional authority will certainly add to the arsenal of options they have in the world’s credit markets. I expect them, you expect them, and the public expects them, to wield that authority with great care and diligence. Especially since T-Corp’s centrality to the state’s finances is increasing.
T-Corp’s New Chair
Consider this: T-Corp now has $125 billion under management, with $215 billion on its balance sheet.
Outstanding citizens like Michael Dywer, T-Corp’s Chair, have dutifully overseen the institution’s governance. Presiding over its growth. Yet soon Michael’s term as Chair will end. Soon enough I’ll talk more about Michael’s next mission. And about his legacy at T-Corp.
Michael leaves big shoes to fill. And there are few people able to fill them. Few people who understand the deep gyrations of global markets intuitively. Few people credentialed with years of experience of having to exercise astute judgement about intricate economic questions.
One of those people is Dr Glenn Stevens. The former Reserve Bank Governor. So today I am announcing the appointment of Dr Stevens as TCorp’s next Chair, effective from the 1st of September this year. He is the best person for the job.
He has accepted the government’s invitation. I am glad. I am also grateful.
The Capital Program
The second frontier for further spending discipline is on the capital side of the budget, our $100 billion + infrastructure program.
This is the program currently building NSW 25 new metro stations, a new Tunnel under Sydney Harbour; a new light-rail network in Parramatta North; a new road network for our new international airport; a new train station at Woollahra; the new Powerhouse Museum; new hospitals in Eurobadalla and Rouse Hill; 100 public pre-schools; as well as myriad local schools, roads and health projects across the state, from Broken Hill to Singletons Mill.
Such a large program means a government of our size has an out-sized impact on the construction industry. On the standards that prevail. Especially when disputes inevitably arise that require resolution when delivering an infrastructure program this ambitious.
These disputes are often complex. The stakes are always high. And the public is right to expect their Government to act carefully, act deliberately, act methodically and settle disputes as expeditiously as possible.
But – as you know – the public is even more insistent on getting the infrastructure they paid for. Ideally, at the time they paid for it to be delivered. And (at least) close to the price the Government agreed to pay.
I tell you this because even a slight deviation from these principles can risk a large deviation in price. Under-cutting the value of the public’s investment in an infrastructure project – mega or otherwise.
Just recently the Government had to politely insist on our agencies and contractors following these principles in a complex dispute involving allegations of bad behaviour on the Western Sydney Airport Metro Project.
Soon I expect the Government will insist on all parties following these same principles in disputes like those affecting the M6 project.
Talks with those parties continue. But – you should know – in these disputes: the government is prepared to take the actions necessary to protect the public’s interest. To protect the public’s dollars. And to protect the public’s confidence in their $100 billion + infrastructure program.
The Road Ahead
There is a temptation in government, particularly during difficult times, to cast spending discipline aside. To pretend it is unimportant.
Not true. Not because the challenges facing working families are not real. They are.
Not because the government has no role to play. It does.
But because every dollar the Government spends comes from someone who earned it first.
From a nurse finishing a night shift. From a small business owner making payroll. From a tradesperson working weekends. From a family trying to get ahead.
That is why Budget 2026 will be guided by a simple proposition: That relief must be matched with responsibility.
That action must be matched with discipline. And that reform must be matched with results.
Because our task is not simply to help people through the next twelve months. Our task is to ensure that New South Wales remains a place where hard work is rewarded.
Where aspiration is encouraged.
Where families can build a good life and where businesses can invest with confidence.
Above all, our task is to build a state working Australians can afford.
Thank you.
