Airport city to take off with major budget boost

A major “airport city” development that’s been plagued by delays will get a near-billion-dollar funding injection in a bid to help the project take off.

The aerotropolis precinct near the under-construction Western Sydney Airport will receive $835 million in support as part of the NSW budget, to be delivered later in June.

The surrounding 11,200-hectare industrial and housing zone is designed to create thousands of jobs and drive economic growth in Western Sydney but has been beset by slow decision-making and will likely take decades after the airport’s scheduled opening in 2026 to complete.

But the state government is hoping to turn the stalled project around, announcing on Monday that Sydney Water will invest $644 million to deliver stormwater and recycled water infrastructure across the Mamre Road precinct, northwest of the airport.

It will be the first area developed as part of the aerotropolis, laying the foundation for remaining industrial sites to be built around the airport.

Much of the site is farmland serviced only by local roads and basic infrastructure.

“With billions of dollars now committed, we’re not just talking about building a new airport,” NSW Premier Chris Minns said.

“We’re creating a connected, thriving region that will deliver job, homes and opportunity for generations to come.”

Other funding includes $150 million to lay down roads around the airport district for freight transport and to account for the expanding population of the city.

The airport’s opening in late 2026 will further accelerate population growth in the region, bringing in a projected 63,000 people by 2041.

The $5.3 billion international aviation hub is aimed at catering to five million passengers per year when it opens and 82 million by 2063.

The area will also be fitted out with a new fire station that will become the largest in western Sydney, with $42 million to be spent on the Badgerys Creek facility and more than 50 extra firefighters.

Treasurer Daniel Mookhey was upbeat about the budget on Sunday, saying it would show real wages growing and a recovery in disposable incomes after recent interest rate cuts.

“We are going to look to cut our interest payments, we are going to want to keep debt stable, we are looking to remove waste when we see it, we’re determined to rein in consultant spending,” he said.

NSW was forecast to record a $5 billion budget deficit in 2024/25 amid sluggish home sales and fast-growing cost of insurance for state employees, according to a mid-year update delivered in December.