New South Wales Puts $80 Million on the Table to Spark Next Startup Boom

Sydney’s burgeoning Tech Central will receive a $38.5 million boost.

Sheep graze in front of wind turbines in Lake George on the outskirts of Canberra, Australia, on Sep. 1, 2020. David Gray/Getty Images

Facing sluggish productivity growth, the New South Wales (NSW) Labor government is attempting to galvanise more investment in Australia’s most populous state with an $80 million pledge for “innovation funding.”

The funding package, part of the 2025–26 state budget to be delivered on June 23, is aimed at sparking further growth in startups and tech firms.

A major portion—$38.5 million—will be directed to Tech Central, the slated innovation precinct in the south of Sydney’s CBD.

A further $20 million is earmarked for commercialising emerging technologies in housing and energy.

NSW already draws the bulk of Australia’s venture capital, accounting for 65 percent in 2024. It is also home to five of the country’s eight “unicorn” companies, a start-up valued at over $1 billion.

An image of the front entrance to the Australian head office of global design software giant Canva in Sydney's Surry Hills in Australia, taken on May 23, 2025. Courtesy of Kevin Lee

Investment Delivery Authority to Cut Delays

The budget will also fund the creation of a new Investment Delivery Authority, backed by $17 million, to fast-track project approvals and eliminate bureaucratic hurdles that stall development.

Premier Chris Minns said the authority would be tasked with ensuring NSW remains attractive to business by simplifying regulatory processes.

“Our state is open for business and this change will encourage more people to bring their best ideas to life in NSW, all backed by our government,” he said.

Chris Minns, premier of New South Wales attending an Australia Day event in Sydney, Australia on Jan. 26, 2025. Izhar Khan/Getty Images

Treasurer Daniel Mookhey said the authority will serve as a catalyst for growth.

“The Investment Delivery Authority is the turbocharger to drive economic growth across the state,” he said.

The agency is expected to focus on accelerating projects across renewable energy, data centres, hotels and commercial developments.

A photo of the Global Switch data centre in Ultimo of Sydney, Australia taken on May 9, 2025. Courtesy of Kevin Lee

Opposition Says Labor Has Wasted Last 2 Years

Opposition Leader Mark Speakman said the Minns government was more focused on reshaping narratives than addressing rising living costs or service delivery.

“They’re focused on rewriting history,” he said. “This budget risks wasting a decade of progress delivered by the Coalition.”

Shadow Treasurer Damien Tudehope was more scathing, claiming Labor’s rhetoric around “vanity” projects under the previous government ignores their real impact.

“What this Labor government calls ‘vanity’ is what delivered jobs, trains, schools, and hospitals for millions of families across NSW,” he said.

After two years in power, Tudehope argued, the Minns government still lacks clear strategies on housing affordability, hospital performance, and long-term economic opportunity.

Economic Pressures Continue

The NSW innovation push coincides with growing pressure on the federal government to boost business investment and respond to deteriorating global economic conditions.

Federal Treasurer Jim Chalmers has flagged that the current economic trajectory is unsustainable, citing weak private investment and global instability.

Speaking at the National Press Club last week, Chalmers said a “big agenda on the supply side” would be essential to securing Australia’s prosperity.

His remarks come ahead of an investment summit in Sydney hosted by the superannuation industry this August.