Budget backs Illawarra Shoalhaven’s transition and future growth
The Property Council of Australia today said the NSW Government’s 2026-27 Budget continued to support the Illawarra Shoalhaven’s transition to a more diverse and resilient economy, with targeted investment in infrastructure, jobs and community assets.
Property Council Illawarra Shoalhaven Regional Director Matthew Wales said the Budget recognised the region’s growing importance in the state’s economic future, particularly as it shifted toward new energy, advanced manufacturing and population growth.
“The Illawarra Shoalhaven is at a turning point and with the right investment, it can play a leading role in NSW’s future jobs and housing growth,” Mr Wales said.
“This Budget continues investment in the infrastructure and institutions needed to support that transformation, particularly as the region adapts to new economic opportunities.”
Mr Wales said the Budget included significant investment in health and community infrastructure, alongside major transport and freight upgrades to support regional connectivity and productivity.
Key Budget commitments for the Illawarra Shoalhaven include:
New
- $270 million for transport connections to the Port of Port Kembla.
- $16 million for the Tripoli Way extension, improving local connectivity.
- $17 million to plan the redevelopment of the Wollongong CBD and WIN Sports and Entertainment Precinct.
- $47 million funding over four years to the redevelopment of Shellharbour Hospital and integrated services, including Warrawong Community Health Centre.
Ongoing
- Major investment in regional health infrastructure, including new and upgraded hospital facilities across Shellharbour, Shoalhaven, Eurobodalla and Wollongong.
- $1.2 billion for the Princes Highway corridor, including the Milton Ulladulla bypass.
- $186.1 million for the Mt Ousley Interchange, a critical freight and commuter route.
- $100.8 million for the Nowra bypass and network improvements.
- $75.6 million to continue Princes Highway safety and productivity upgrades further south.
- $21.9 million towards south-facing ramps on the M1 at Dapto.
- Investment in education and skills infrastructure, including new schools and advanced manufacturing training facilities in Wollongong.
“The Illawarra Shoalhaven continues to grow in population and economic importance, but that growth must be matched with timely infrastructure delivery.”
Mr Wales said the region’s economic potential, particularly around Port Kembla and key employment precincts, still required sustained focus in future Budgets.
“We know the opportunity is there – from Port Kembla to the Wollongong CBD and our innovation precincts – but unlocking that potential requires long‑term investment and coordinated planning,” he said.
“There is a clear opportunity to accelerate housing delivery and investment in the Illawarra Shoalhaven, but it depends on getting the fundamentals right – infrastructure, planning and coordination,” Mr Wales said.
Mr Wales said ongoing investment in transport connectivity and enabling infrastructure would be essential to link the Illawarra Shoalhaven with broader NSW growth.
“Better connections, both within the region and to Western Sydney, will help unlock jobs, improve productivity and support a more connected economy,” he said.
“With the NSW 2027 election on the horizon, there’s a clear opportunity to set out a more ambitious policy agenda – this region is ready to play a bigger role in NSW’s future.”
