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The wellbeing of people across New South Wales is at increasing risk, with the 2025 NSW Budget failing to deliver critical investment in social infrastructure to support the state’s most vulnerable communities, according to the New South Wales Council of Social Service (NCOSS).

The peak body welcomed investments in transport and construction, but warned this alone will not achieve the Budget’s goal of building a prosperous future for NSW.

NCOSS CEO Cara Varian said the peak body was disappointed with the Budget’s minimal funding for essential community services and crisis prevention, particularly for those on low incomes, experiencing domestic and family violence or trauma, or who are at risk of homelessness.

“The people of New South Wales are hurting,” said Ms Varian.

“Right across the social sector, we’re hearing of services being forced to turn people away or put their own financial sustainability at risk just to meet soaring community demand.

“The Budget Papers talk about ‘building communities’, but communities are about people, not just pipes and poles. The investments in essential social services focus on managing crises, rather than preventing them. We should be investing in services that help prevent poverty, homelessness or trauma before it occurs.

“We welcome investments in expanding access to dental health and maternity healthcare in regional areas, and food relief, but they are so small that they will not make a substantial difference.”

Ms Varian stressed that genuine progress in social and economic wellbeing can only happen when the government works in real partnership with the community sector.

“People are increasingly finding New South Wales a financially impossible place to live in, and are leaving altogether. But not everyone has that luxury.

“To truly break the cycle of entrenched disadvantage in New South Wales, we need coordinated, strategic investment that puts people at the centre.”

​​Executive Director of Community Legal Centres NSW, Sarah Marland said it was disappointing to see a lack of substantial investment in social infrastructure like community legal centres.

“We know these centres are operating well over-budget while being under-resourced. Without critical funding arrangements in place, people in crisis risk falling through the cracks — missing out on legal help when they need it most, with devastating consequences for individuals, families, and entire communities.

NCOSS’ Key Budget Asks Included:

  • Investment in affordable and social housing, particularly for low-income renters
  • Financial relief to offset rising energy bills, with targeted support for households in need
  • Increased core funding for neighbourhood and community centres delivering essential support and connection
  • Funding for the portable long-service leave scheme

“Unfortunately, these asks for the social sector were not met. NCOSS will continue to advocate to the NSW Government for the delivery of social support to those in our state who need it most,” said Ms Varian.

NCOSS is hosting its Post-Budget Breakfast on Wednesday 2 July, where the NSW Treasurer and Shadow Treasurer will pitch their economic case to the sector. RSVP.

Media contact: Maria Kelly (0432 049 034) or Bron Matherson (0438 844 765)