Sydney Toll Roads Capped at $50 Weekly Under Labor's Budget

Drivers will pay no more than $50 a week to use Sydney's toll roads under Labor's final budget ahead of the state election in March.

The existing $60 weekly cap will be lowered until July 2027, making 200,000 more drivers eligible for the cost-of-living measure.

It is among the latest budget measures to be announced before Treasurer Daniel Mookhey releases his fourth spending plan for the state on Tuesday at 12:30pm.

With the economy slowing almost to a halt, and stamp duty and land tax revenue projected to drop by $8 billion, Mr Mookhey has tempered expectations of a return to a surplus in 2027-28.

Here's what we know so far.

Health to get record funding injection

The public health system is always a growing pressure on the state's budget.

Over the next four years, $10.3 billion has been set aside for staffing costs, including the employment of 9,000 extra health workers.

In the next financial year alone, a record $3.6 billion will be spent on building or upgrading hospitals at Rouse Hill, Bankstown and Fairfield.

There is also $400 million for a "hospital maintenance blitz" across the state.

Cash for classrooms

The construction of new schools and upgrades of existing ones is set to cost the state $9.2 billion over the forward estimates, up from $9 billion last year.

Funding has been allocated to build primary schools in Sydney's west: Austral South, Bella Vista West, East Cobbitty, Marsden Park South, Menangle Park, Oran Park North, Orchard Hills, and Rhodes.

New high schools funded are at Austral, Bella Vista, and Rydalmere.

Money is set aside to upgrade primary schools at Cherrybrook and Spring Farm, and Nangamay Public School at Glenmore Park.

Factory for homes

The budget includes funding to establish a factory for modular housing based on the government's pattern book designs.

The figure is not being disclosed as it is yet to go out to tender.

Over the next four years, $32 million will be spent to "modernise" the state's building approvals system.

This will include the use of pilot AI programs to speed up the processing of applications.

Grants of up to $150,000 will be available for existing manufacturers to adapt offsite construction methods for mid and high-rise housing.

Roads and railways

Improving the reliability of Sydney's trains is a key focus for the government after an overhead wiring failure caused days of chaos for commuters last year.

The network maintenance budget has an extra $200 million compared to 2025-26.

The Rail Operations Centre will receive $150 million so it is better equipped to respond to incidents.

More drivers and guards will be employed on intercity services to make trains more reliable for those travelling between Sydney, the Illawarra, Central Coast, Newcastle and the Blue Mountains.

Three-hundred million will "fast-track" upgrades to the notoriously busy Elizabeth Drive and Fifteenth Avenue in Sydney's west.

The government said the injection, which is being matched by Canberra, will allow work to begin in late 2026 — a year earlier than planned.

Bucks for bushwalks and boardwalk

The state's national parks will receive $130 million to be spent on walking tracks, campgrounds, picnic areas, amenities, lookouts, roads and visitor centres.

Some of the funding is needed to rebuild and fortify infrastructure damaged by floods, storms and landslips.

The government said the spending was vital as cost-of-living pressures led to more people visiting national parks for a low-cost holiday or weekend escape.

And there is funding for protecting nature itself, with $195 million for feral animal control, tree planting, weeding, and restoring landscapes for at-risk species like koalas.

The budget also includes $41 million for a one-kilometre boardwalk at Gosford. The 4.5-metre path will run next to the railway line over Brisbane Water, connecting Goodaywang Reserve at Point Clare to Grahame Park.

'Thriving Kids' funding

The state has already budgeted for services to help some of those about to be kicked off the National Disability Insurance Scheme (NDIS) under federal Labor's impending cuts.

Set aside for the new Thriving Kids program is $631.9 million, which will support families with young children who have developmental delay or autism.

The funding is set to last five years and will be spent on early intervention advice, playgroups, peer and parenting programs, and therapy.

Premier Chris Minns has previously said the state would be unable to provide care equivalent to the NDIS as it was "flat out" providing basic hospital care.