Federal Budget 2026: NSW Productivity Package Explained
The Albanese Government is funding $72.5m in NSW planning reforms as part of Budget 2026. Here's what the productivity package means for workers and novated leases.
The Albanese Government has announced a $72.5 million productivity package directed at New South Wales, timed as a key milestone ahead of the upcoming Federal Budget. According to the Treasury Ministers release [Source 1], the funding targets commercial planning and zoning reforms — with $67.5 million earmarked specifically for changes designed to speed up approvals, remove development barriers, and get major projects moving faster.
The framing is straightforward: outdated planning rules are slowing business growth, and the Commonwealth is paying state governments to fix that. Whether it delivers is a different question — but it signals where the Budget's broader productivity narrative is heading.
What this means for novated lease customers
At first glance, planning reform and novated leasing don't share much real estate. But the connection matters in a couple of ways worth watching.
First, infrastructure and construction activity tends to drive employer headcount and salary growth — the two things that make a novated lease more valuable to you as a PAYG employee. More jobs, more competition for workers, and employers leaning harder on salary packaging to attract and retain people.
Second, the Budget context matters. The same Budget this package is attached to is expected to contain further policy on electric vehicles and the FBT exemption for EVs — a benefit that directly reduces the cost of running a novated lease on an eligible zero or low-emission vehicle. millarX will publish a dedicated update the moment those details are confirmed. In the meantime, the existing EV FBT exemption remains in place, and qualifying vehicles on a novated lease continue to attract potential savings on both income tax and FBT that a straight car loan simply can't match.
Common questions
Does this productivity package change anything about novated leasing right now?
No immediate changes to novated lease rules flow from this announcement. It is a state-level planning reform funded by the Commonwealth. Watch for EV and FBT-specific measures when the full Budget is handed down.
Is the EV FBT exemption still active in 2026?
Yes, the FBT exemption for eligible zero and low-emission vehicles remains in place. No changes have been announced in this release. millarX will update customers if the upcoming Budget alters the eligibility rules.
How does a federal budget affect my novated lease?
Budgets can introduce, extend or wind back FBT concessions, salary packaging rules, and EV incentives — all of which directly affect what you pay under a novated lease. That's why millarX monitors every Budget closely and publishes plain-English breakdowns.
Why does planning reform matter to employees considering a novated lease?
Faster construction and business approvals tend to support employment growth and wage competition. A larger, better-paid workforce means more PAYG employees who can benefit from novated leasing's pre-tax advantages.
Where can I read the original government announcement?
The full media release is published on the Treasury Ministers website — see Source 1 below. It details the $72.5 million breakdown and the reform priorities agreed with NSW.