Investing in transformational infrastructure

The NSW Government has invested significantly in regional infrastructure over the past decade. To ensure regional New South Wales continues to build excellent facilities for its growing population and provide all the services that strong communities need, this Budget will invest in new and improved infrastructure right across the regions.

Snowy Hydro Legacy Fund

The NSW Governments $4.2 billion Snowy Hydro Legacy Fund (the Fund) is a once-in-a-generation opportunity to invest in transformative infrastructure across regional New South Wales.

The Fund is delivering critical infrastructure and initiatives to foster regional economic development across priority areas identified in long-term government plans. Key projects include:

  • $100.0 million for the Gig State project to upgrade digital network infrastructure to deliver metro-level internet services to regional businesses and residents.

  • $50.0 million for Mobile Coverage Stage 1, investing in infrastructure and emerging technologies to deliver improved mobile coverage across regional New South Wales.

  • $47.9 million for the Farms of the Future program, supporting farmers to adopt agtech devices and apps.

Special Activation Precincts

The NSW Government is continuing its investment in Special Activation Precincts (SAPs), which represent new ways of planning and delivering industrial and commercial infrastructure to support the ongoing prosperity of regional New South Wales.

The Government has committed around $1.0 billion of capital expenditure framed at enabling more local jobs and driving economic outcomes, including:

  • $391.3 million for the Snowy Mountains SAP, including the new Southern Connector Road in partnership with the Commonwealth Government, expanding the visitor economy to a year-round destination to increase investment and jobs in the area.

  • $219.0 million for the Parkes SAP, which covers around 4,800 ha at the only junction of Australias two rail spines, the Inland Rail and Trans-Australia Railway.

  • $193.9 million for the Moree SAP, providing a new business hub specialising in agribusiness, logistics and food processing.

  • $150.6 million for the 4,500 ha Wagga SAP to capitalise on the Inland Rail project, supporting manufacturing, agribusiness and freight and logistics.

  • $25.0 million for Special Activation pre-delivery works for the Williamtown SAP.


The NSW Government continues to deliver high-quality education and modern school infrastructure that meets the needs of the States growing population while preparing young people for the future economy. This Budget includes:

  • $583.6 million in 2022-23 towards building and upgrading schools across regional and rural areas, equating to 32 per cent of the major works spend on schools in 2022-23.

  • $89.8 million in 2022-23 for new and ongoing capital works programs at regional TAFE campuses to improve facilities, upgrade teaching equipment and create modern learning spaces.

  • $10.6 million for the NSW Aboriginal Education Consultative Group to develop a Regional Operations Model. This includes $460,000 in 2022-23 to continue implementation and maintenance of the community component of the Language and Culture Nests initiative in regional locations.


The NSW Government is continuing to invest in projects that connect communities to one another, improve productivity, and increase connections to national and international markets through the movement of goods and people. This Budget includes:

  • $835.6 million over three years to continue delivery of a modern, new Regional Rail Fleet to replace the ageing XPT, XPLORER and Endeavour trains, and construct a purpose-built maintenance facility in Dubbo.

  • $335.0 million over four years as part of a NSW and Commonwealth Government funded proposal to grade separate several road and rail interfaces in New South Wales as a result of the Inland Rail project.

  • $274.5 million over four years to continue detailed planning and commence early works of the Fast Rail Network including initial stages on the northern corridor between Sydney, the Central Coast and Newcastle in collaboration with the Commonwealth Government.

  • $201.2 million for a range of regional transport programs and projects including the Fixing Country Bridges program, continued planning and delivery of the 16 Cities program, and supporting regional councils through the Fixing Local Roads program.

  • $193.0 million over two years to support the upgrades of priority regional roads transferred to the State, as part of the NSW Governments Regional Road Transfer and Road Classification Review.

  • $60.2 million over two years for the Fixing Country Rail program, to continue to deliver improved capacity and reliability of the regional rail network and deliver a highly functional network for moving freight in and out of regional areas.

  • $12.0 million to continue the Transport Connected Bus Program, delivering vehicle tracking and automatic passenger-counting technology across contracted buses in regional New South Wales.

  • $8.7 million to commence the Heavy Vehicle Rest Stops Improvement program, which will allow for the progressive delivery of rest-stop improvements on state roads throughout regional New South Wales.


The NSW Government is transforming the States energy infrastructure that will generate economic and employment benefits for regional industries, workers and consumers.

Additional investments over the next four years that will significantly boost regional areas include:

  • $1.9 billion to roll out transmission infrastructure for Renewable Energy Zones in five New South Wales regions (which is intended to be fully recouped, with a maximum impact on net debt of $1.2 billion after taking account of recycling proceeds).

  • $110.0 million to build low-carbon industry by providing grants for new business activities to competitively produce low-emissions materials.

  • $105.0 million investment in the Renewable Manufacturing Fund to ensure New South Wales captures the jobs and investment benefits of the renewable energy transition.

  • An additional $50.4 million to accelerate the Renewable Energy Zone development in light of earlier-than-expected thermal power plant closures.

  • $45.9 million to expand the Pumped Hydro grants program to add a further 1.4 GW of storage capacity to the grid.

Image of Sunlit Tumut three power station, part of the Snowy Hydroelectric Scheme in Talbingo in the South East and Tablelands region