A Budget that steadies the ship — but leaves too many behind

The 2026–27 NSW State Budget arrives at a time when many people are feeling the squeeze. For households on low incomes, the pressure isn’t abstract — it’s showing up in rent they can’t afford, bills they can’t keep up with, food they can’t afford – and support services stretched to breaking point. Against that reality, this Budget does some important things right.

But it also misses a big opportunity to tackle one of the most urgent challenges facing the state: homelessness.

Let’s start with what’s working. The Government has clearly recognised the importance of investing in essential services. Funding for health and additional support for people experiencing domestic and family violence are both welcome and necessary. These are areas where demand is high and the consequences of underfunding are serious. Strengthening these systems is the right thing to do, and it will make a real difference.

There’s also been a practical nod to the sustainability of the community sector itself. Support to help organisations deal with rising wage costs might not grab headlines, but it matters — it matters a lot. Community service organisations can’t deliver support without workers, and right now, many of those services are under serious strain. This funding helps stabilise a workforce that is essential to keeping communities functioning.

The Budget also gestures toward longer-term reform. Investments in schools and healthcare, along with cost-of-living relief measures like vehicle registration discounts (particularly helpful in regional areas), show an understanding that pressure is being felt across multiple fronts. These aren’t game-changing measures on their own, but they’re part of a broader picture that acknowledges the challenges people are facing.

And yet, for all of that, something critical is missing. 

When it comes to homelessness and housing insecurity, this Budget simply doesn’t go far enough. At a time when more people are being pushed into crisis, there’s no significant new investment in specialist homelessness services — the very services that are already overwhelmed and turning people away every day.

That gap is hard to ignore. Rents continue to climb, social housing waitlists keep growing, and more people are finding themselves without a stable place to call home. While there are targeted investments in housing and temporary accommodation, they barely scratch the surface of what’s needed. Without a serious boost to frontline homelessness services and early intervention programs, the system will continue to struggle to keep up.

And we know what happens when it does. People fall through the cracks. Families end up in crisis. Individuals cycle through emergency departments, the justice system, and short-term accommodation — all of which cost more in the long run than getting the right support early on.

There’s also the broader issue of how NSW compares to other states. On a per capita basis, funding for homelessness services continues to lag. That translates directly into fewer resources, less capacity, and more people missing out on help when they need it most.

The frustrating part is that we already know what works. Early support, prevention, and properly funded homelessness services don’t just change lives — they save money over time by reducing pressure on other parts of the system. Choosing not to invest now isn’t just a missed opportunity; it’s a decision that will make the problem harder and more expensive to solve down the track.

This Budget does some important work. It strengthens key services and offers some relief to communities doing it tough. But if we’re serious about building a fairer, more resilient NSW, we can’t afford to sidestep homelessness.

The path forward is clear: invest in prevention, properly fund homelessness services, and make sure no one is left without support when they need it most. Because ultimately, a Budget should be judged not just by what it includes — but by who it leaves behind.