Wednesday, 13 May 2026

Federal Budget Receives Mixed Reactions From Local Officials

 BY OLI GOELDNER and IAN CROUCH 

The federal budget has delivered a few highlights for the Hunter region, but the benefits are minimal when it comes to targeted spending. 

The biggest line item was the almost $660 million over three years for high-speed rail between Newcastle and Sydney, which includes $230 million for the two year development phase of the project. 

For the local health industry, the federal government will invest $25 million towards six fully bulk-billed clinics across the Hunter and Central Coast. 

The Port of Newcastle will receive an $8 million installment from the $88 million five year package to help the region become hydrogen ready. 

A further $6 million will be spent on a master planning for rezoned mining sites in Lake Macquarie and Muswellbrook, including help to establish new industries and boost local renewable infrastructure. 

Newcastle MP Sharon Claydon said they are looking to boost the Hunter moving forward. 

"There are some really key matters in this budget that provide cost of living relief, access to affordable Medicare funded healthcare services and big support critical productivity measures, with our region undergoing transitioning seeks to benefit from enormously," she said. 

Shortland MP and Defence Industries Minister Pat Conroy has confirmed the Williamtown RAAF Base will benefit from $53 billion in defence spending over 10 years, set to benefit local industries working on maintenance of the F35 fighters, unmanned systems and missile production. 

He said the investment into a $176 partnership to build 40 new Bluebottle uncrewed surface vessels will also benefit the region. 

"These Bluebottles are cutting edge technology," he said. 

"They are small boats that are uncrewed maritime vessels which are wave, wind and solar powered, and they have great sensors on them to detect potential enemies and other adversaries." 

On the down side, there was no mention of a support package for Tomago Aluminium smelter. 

Business Hunter is hoping this will be announced aside from the budget in the near future, with the federal and state governments still to reach agreement on much each will contribute.

CEO Bob Hawes said while a $2 billion fund for enabling infrastructure to boost housing supply is welcome, only $500 million is going to the regions, which will be spread too thinly to make any major difference to the supply of houses. 

"We're still a long way behind the 8-ball to make sure we've got a workforce in place, not only in the Hunter but across the nation, to be able to cope with business as usual," he explained.

"But, also the ambitions we have for future growth in areas, like renewable energy, to be able to complete that task with the right skills and the right people to do it." 

Meanwhile, Nationals Lyne MP Alison Penfold has labelled the budget as a "regional funding bloodbath", leaving regional and rural communities, like Lyne, behind. 

"Budgets can make or break the ability of a region to thrive, and this budget lets us down big time," she said. 

"It's the worst budget that I've ever seen.

"Labor has ignored our [Lyne] needs as one of the oldest electorates in the country."